As Donald Trump’s inauguration for his second term on January 20 approaches, the Bitcoin community is closely watching which of his promises regarding the digital currency will be addressed first. Among the 10 commitments made by the Republican during his campaign, two seem to be the most feasible to implement in the short term.

During his campaign, he focused on positioning himself as the ideal candidate for the growth of bitcoin and digital assets. And he assured that his country must become fertile ground for the industry, including in his speeches a fervent defense of this technology, gaining followers among bitcoin investors and key figures in the cryptocurrency industry in the United States.

During his campaign, Trump made the following commitments:

Priorities

• Free Ross Ulbricht: He promised to grant freedom to Ross Ulbricht, the founder of Silk Road. The promise to pardon or commute Ulbricht's sentence has the potential to be one of Trump's first executive actions.
• Firing Gary Gensler: He announced his intention to remove Gary Gensler, the current SEC chairman, known for his regulatory approach to cryptocurrencies. This is a step that has already been taken, with Gensler resigning and Atkins, known for his pro-crypto stance, being appointed. The change could mark the beginning of a friendlier era for the crypto sector in terms of regulation.
• A Cryptocurrency Advisory Council: Plans to create an advisory council to develop clearer and more beneficial regulatory policies for the cryptocurrency sector. With Bo Hines as CEO and David Sacks as “crypto czar,” this council is already taking shape, aiming to develop clearer and more beneficial policies. This is a move that can be implemented quickly without the need for extensive legislative action.

Promises that could span the second year or more

• Favorable regulation: He proposed to modify current policies that he says are forcing cryptocurrency companies out of the United States. This commitment implies deeper legislative or regulatory changes, which will require time and discussions with Congress and government agencies.
• Elimination of anti-bitcoin policies: He pledged to reverse the policies implemented by the Biden administration that he considers harmful to cryptocurrencies, which will surely need a good time to make adjustments in the regulatory reconfiguration.
• Defending the Right to Bitcoin Self-Custody: He advocated for the right of the roughly 50 million bitcoin holders in the United States to hold their funds in bitcoin and other cryptocurrencies in their own custody. And while these promises may be announced as official policies, their practical implementation could face legal and regulatory challenges, positioning them for medium-term development.
• Banning the launch of a CBDC: He firmly stated that he would never allow the issuance of a central bank digital currency (CBDC) in the United States. In any case, banning the issuance of a CBDC would require legislative action, i.e. a law that specifically prohibits or restricts the creation of such a currency. This would involve drafting, proposing, and passing a law through the U.S. Congress, which can be a long and complex process, especially if there is political opposition or conflicting interests.
• Bitcoin Mining Boost: He promised to encourage Bitcoin mining within the United States. This initiative requires specific infrastructure and policies that could be part of a long-term plan.
• A Bitcoin Strategic Reserve: He proposed establishing a national Bitcoin strategic reserve, including government-confiscated cryptocurrencies. Creating a Bitcoin strategic reserve would require new legislation. Proposing, debating, and passing a specific law allowing and regulating the creation of such a reserve would involve a lengthy process in Congress. Although there is also the possibility that Trump could create this Bitcoin treasure trove by express route or by executive order.
• Making the US the crypto capital of the world: He pledged to make the United States the world’s leading power in the cryptocurrency space. This is a broad goal that encompasses multiple policies and actions, many of which depend on how previous promises are executed. It’s a vision that can be developed over the course of his term.

Releasing Ross Ulbrich is a key task for Trump

A promise with immediate implications, though of a different nature, is the potential release of Silk Road founder Ross Ulbricht through a pardon or commutation of sentence. Trump could act unilaterally to fulfill this commitment.

As president, Trump could exercise his constitutional authority to commute Ulbricht’s sentence, allowing for his immediate release , or grant a full pardon that would wipe the conviction from his record. This process would culminate with the signing of an executive order, which would be communicated to the Federal Bureau of Prisons to initiate release proceedings. The action would be announced publicly on his first day in office.

Ulbricht was sentenced in 2015 to two life sentences plus 40 years in prison, without the possibility of parole. That was the punishment he received for creating a black market on the darknet that allowed free trade in bitcoin, without any state interference.

His pardon will likely be controversial, sparking significant public and political debate, but Ulbrich's release would have a significant impact on the bitcoin community and market. It is an act that could be seen as a sign of government support for the philosophy of decentralization and financial freedom advocated by Satoshi Nakamoto's brainchild. It could also boost investor confidence and inject momentum into the price of bitcoin.

If investors and users interpret Ulbricht's release as a sign that more industry-friendly policies will definitely be in the works, it will likely trigger a rally in digital asset market prices.

Ulbricht is seen by many in the community as a symbol of the fight against government regulation and censorship. His release could boost morale and reaffirm the cypherpunk and libertarian ideology that many people in the Bitcoin community share, possibly attracting more supporters to further boost adoption.

The move could also reignite the debate over how cryptocurrencies should be regulated. While some would see this as a step towards lighter or more favorable regulation, others might worry about legal precedents and the normalization of darknet-related activities affecting how it is legislated in the future.

Immediate priorities achievable during your first year in office

Some of these promises have made things easier for Trump just before his inauguration. One example is the resignation of Gary Gensler as chairman of the US Securities and Exchange Commission (SEC), something that the cryptocurrency industry had been clamoring for. Gensler was seen by many as an adversary of the digital asset sector, mainly because under his leadership, the SEC unleashed a series of lawsuits against multiple companies within the Bitcoin ecosystem.

Replacing Gensler, Trump has named cryptocurrency advocate Paul Atkins as the new head of the SEC, ticking that promise off the new US president's list of commitments.

Another promise that has been taking shape is the creation of an Advisory Council in charge of designing transparent regulatory policies for the cryptocurrency sector. The sign that this project is underway was revealed by CriptoNoticias in November, when it became known that representatives of several companies in the sector, including Ripple, Kraken and Circle, were competing to secure a seat on this council.

Trump also decided who will be the head of the Cryptocurrency Advisory Council. He said that former college football player Bo Hines will be the executive director of the advisory group, which will be chaired by the so-called “cryptocurrency czar,” David Sacks.

And while Trump has talked about broader changes, such as making the U.S. the crypto capital of the world, promoting Bitcoin mining, advocating for the right to self-custody and creating a strategic Bitcoin reserve, these goals would require considerable time to implement due to the complexity of regulatory and financial processes.

On the creation of the Bitcoin reserve, activist Dennis Porter predicted that it will be created during Trump's first 100 days in the US presidency and is convinced that a pardon for Ross Ulbricht will be decreed on the first day.