President Trump’s upcoming Crypto Council aims to shape U.S. crypto policies, focusing on integration and regulation. XRP attorney John Deaton urges priorities like repealing SAB 121, creating a Bitcoin reserve, and revising crypto tax rules.
With intentions to establish a Crypto Advisory Council, the US crypto community expects significant changes under President Donald Trump.
Although Trump did not include cryptocurrency in his first executive orders, this 24-member group seeks to influence crypto legislation. The crypto community is still very optimistic.
In a recent post, XRP lawyer John Deaton outlined his aims for the council, which centered on four areas: rewriting crypto tax laws, creating a Bitcoin reserve, permitting crypto tax payments, and repealing SEC Staff Accounting Bulletin 121 (SAB 121).
Deaton urged the repeal of SAB 121, which has made it difficult for banks to retain cryptocurrency assets, emphasizing that doing so is essential to incorporating cryptocurrency into the global financial system. Additionally, he proposed an executive order to establish a strategic reserve of Bitcoin.
Regarding taxes, Deaton supported reexamining the IRS’s categorization of cryptocurrency as property, which now entails capital gains taxes, and permitting tax payments in cryptocurrency without triggering capital gains taxes.
Bitcoin Reserve and Crypto Taxation
Further, the XRP lawyer suggested the establishment of a de facto SBR through a potential executive order. Emphasizing the strategic Bitcoin reserve as an important crypto policy to be included, Deaton added,
He could order the creation of a cryptographic escrow locking up the 200K BTC, currently owned by the USG, for 20 years. This serves as a de facto SBR – an asset owned by the USG, with no intent to sell.
In addition, John Deaton highlighted the significance of crypto taxation in the Crypto Council’s policies. According to him, allowing people to pay taxes in crypto without incurring capital gains tax would be a significant step forward.
