Bitcoin is ‘good for the U.S. economy over the long run’

Famed investor and Bitcoin advocate Anthony Pompliano has offered three pieces of advice to President-elect Donald Trump to help him become the “first Bitcoin president.”

Famed investor and Bitcoin advocate Anthony Pompliano offered three pieces of advice to President-elect Donald Trump to help him become the “first Bitcoin president.”

1. Repeal SAB 121

In a video posted on Jan. 14, Pompliano, CEO of Professional Capital Management, outlined three actions Trump could take to push Bitcoin (BTC) prices “much, much higher.”

His first recommendation was to repeal Staff Accounting Bulletin No. 121 (SAB 121), which prevents banks from holding digital assets on their balance sheets without classifying them as liabilities. According to Pompliano, eliminating SAB 121 would free banks to hold Bitcoin on behalf of their customers, which could significantly increase demand for the digital currency.

2. Establish a strategic reserve

Pompliano’s second suggestion was for Trump to make good on a prior promise to establish a national Bitcoin reserve. He pointed out that the U.S. government already holds approximately 200,000 BTC on its balance sheet. Creating a reserve would involve adding to that position rather than selling it,

“It’s good for the U.S. economy over the long run—for the United States to have more Bitcoin,” Pompliano said. “If Bitcoin is good for individuals or corporations, it’s going to be good for the country, too.”

3. Change the tax code

Finally, Pompliano urged Trump to introduce tax reform to change the way Bitcoin is treated under the current tax code. At present, Bitcoin is classified as property, meaning that any purchase of goods or services using the digital currency triggers a capital gains tax.

“If we do those three things, we’re going to see Bitcoin adoption accelerate dramatically,” Pompliano said, adding that these steps could position the United States as a leader in the global digital economy.