Pompliano to Trump: Repeal, Reform, Reserve – The Bitcoin Growth Blueprint

• Anthony Pompliano, CEO of Professional Capital Management, has shared three key recommendations for President-elect Donald Trump to establish himself as the “first Bitcoin president” ahead of his inauguration.
• Pompliano encourages Trump to repeal SAB 121, establish a U.S. national Bitcoin reserve, and implement tax reforms to eliminate capital gains taxes on Bitcoin payments.

Anthony Pompliano, a vocal Bitcoin advocate and CEO of Professional Capital Management, has laid out three specific actions that Donald Trump could implement as he becomes the first “Bitcoin President” of the United States. In an X  post on January 14th, Pompliano outlined measures aimed at positioning the U.S. as a global leader in cryptocurrency while accelerating Bitcoin adoption nationwide.

1. Repeal Staff Accounting Bulletin No. 121

Pompliano’s first recommendation is to repeal Staff Accounting Bulletin No. 121 (SAB 121), a regulatory guideline introduced over two years ago by the U.S. Securities and Exchange Commission (SEC). This rule has posed significant challenges for banks dealing with digital assets like Bitcoin. It requires banks to classify Bitcoin holdings as liabilities on their balance sheets, discouraging institutions from offering cryptocurrency-related services.

At that time, the Senate voted to overturn SAB 121, signaling broad political support for reform. However, President Biden vetoed the legislation, leaving SAB 121 in effect. Last year, Galaxy Digital founder Mike Novogratz singled out SAB 121 as one of the policies from the Biden administration that would quickly be reversed when Trump takes office.

According to Pompliano, eliminating SAB 121 would be a transformative step, as it would allow banks to hold Bitcoin on behalf of their customers, ultimately driving a significant increase in demand for digital currency.

2. Establish a National Bitcoin Reserve

Pompliano’s second proposal builds on a promise Trump made during his campaigns in 2024 to create a national Bitcoin reserve. This initiative would involve leveraging the over 200,000 BTC currently in the U.S. government’s custody and acquiring additional tokens over time.

The concept echoes legislation introduced by Senator Cynthia Lummis (R-WY), which proposes selling off a portion of the government’s gold reserves to purchase and hold up to 1 million BTC. Such a reserve would represent nearly 5% of the total Bitcoin supply and potentially more when considering tokens permanently lost due to misplaced private keys or other mishaps.

This move would strengthen the U.S. economy and provide a hedge against rising national debt, which recently surpassed $36 trillion. “If Bitcoin is good for individuals or corporations, it’s going to be good for the country, too,” Pompliano emphasized.

3. Reform the Tax Code

Lastly, Pompliano advocates for tax reforms to align Bitcoin’s treatment with modern economic realities under U.S. tax codes. As it stands, Bitcoin is considered property, and any transaction involving BTC is subject to capital gains tax, creating obstacles for daily Bitcoin (BTC) transactions.

Adding on this, Trump is considering legislation to exempt U.S.-issued cryptocurrencies like Bitcoin, Cardano (ADA), and Ripple (XRP) from capital gains taxes. Cear regulations would make it easier for businesses to operate within the cryptocurrency space, fostering innovation and attracting investment. This could lead to the establishment of new financial products and services that integrate Bitcoin and expand its usage in daily transactions.

Meanwhile, Bitcoin’s price has surged 2.61% in the past 24 hours, reaching $97,300. Analysts predict it will surpass $100,000 as Trump takes office, driven by growing optimism about his pro-Bitcoin agenda.