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

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

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

1. Repeal of SAB 121

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

Its 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, the elimination of SAB 121 would enable banks to hold Bitcoin on behalf of their customers, which could significantly increase demand for the digital currency.

2. Create a strategic reserve

Pompliano’s second suggestion was for Trump to keep his previous promise to establish a national Bitcoin reserve. He pointed out that the US government currently holds approximately 200,000 BTC on its balance sheet. Creating a reserve involves adding to that position rather than selling it,

“The US having more Bitcoin is a good thing for the US economy in the long run,” Pompliano said. “If Bitcoin is good for individuals or companies, it will be good for the country.”

3. Change tax code

Finally, Pompliano called on Trump to pursue tax reform to change the way Bitcoin is treated under current tax law. Currently Bitcoin is classified as property; This means that any purchase of goods or services made using digital currency triggers a capital gains tax.

“If we do these three things, we will see Bitcoin adoption accelerate significantly,” Pompliano said, adding that these steps could position the United States as a leader in the global digital economy.