Trump to Release Crypto-Friendly Executive Orders Early in Presidency
The new administration intends to lower regulatory obstacles and encourage digital asset adoption through executive measures.
WASHINGTON, Jan 17, 2025 — President-elect Donald Trump plans to issue a series of executive orders intended to ease regulatory burdens on cryptocurrency companies and promote digital asset adoption, as reported by sources familiar with the strategy.
These orders are expected to be signed in the early days of his administration.
Formation of a Cryptocurrency Advisory Council
A key anticipated measure includes an executive order to create a cryptocurrency advisory council, a concept Trump initially proposed in July 2024. The council, possibly consisting of up to 20 members, would provide the government with advice on policies to create a more supportive environment for the digital asset industry.
Bloomberg News first reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
The Trump administration is also considering directing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidelines known as SAB 121.
Industry critics argue this guidance has made it overly costly for some companies, notably banks, to hold cryptocurrencies on behalf of third parties.
Another executive order is likely to address what cryptocurrency executives call 'Operation Choke Point 2.0,' an alleged initiative by banking regulators to deter financial institutions from offering services to crypto-related businesses.
Regulators have denied the existence of such an initiative.
Broader Implications for the Cryptocurrency Sector
The expected measures indicate a notable policy shift from the Biden administration's stricter cryptocurrency oversight.
Under Biden, regulators increased sector scrutiny, taking legal action against major exchanges such as Coinbase, Binance, and Kraken over concerns about fraud, money laundering, and consumer protection.
The crypto industry has been embroiled in several high-profile controversies, such as the conviction of Sam Bankman-Fried, founder of the now-defunct FTX exchange, for fraud, and the imprisonment of Binance founder Changpeng Zhao for money laundering.
Critics argue these incidents underscore risks within the sector, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promise to support innovation and entrepreneurship in emerging technologies.
His incoming administration has identified cryptocurrency regulation as one of several immediate priority areas, alongside energy production and immigration reform.
Multiple crypto advocates are reportedly among Trump’s financial supporters and potential cabinet appointments.
Industry and Regulatory Responses
While the SEC and Trump's representatives have not yet commented on the plans, industry experts suggest that the proposed measures could boost mainstream cryptocurrency adoption if implemented effectively.
However, it remains uncertain whether these measures will be introduced through a single executive order or multiple directives.
Cryptocurrency remains a divisive issue in U.S. financial policy, with ongoing debates about balancing innovation with investor and financial system protection.
Trump's proposed approach could influence the future of digital assets in the United States, indicating a potential shift in the global regulatory landscape.
These orders are expected to be signed in the early days of his administration.
Formation of a Cryptocurrency Advisory Council
A key anticipated measure includes an executive order to create a cryptocurrency advisory council, a concept Trump initially proposed in July 2024. The council, possibly consisting of up to 20 members, would provide the government with advice on policies to create a more supportive environment for the digital asset industry.
Bloomberg News first reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
The Trump administration is also considering directing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidelines known as SAB 121.
Industry critics argue this guidance has made it overly costly for some companies, notably banks, to hold cryptocurrencies on behalf of third parties.
Another executive order is likely to address what cryptocurrency executives call 'Operation Choke Point 2.0,' an alleged initiative by banking regulators to deter financial institutions from offering services to crypto-related businesses.
Regulators have denied the existence of such an initiative.
Broader Implications for the Cryptocurrency Sector
The expected measures indicate a notable policy shift from the Biden administration's stricter cryptocurrency oversight.
Under Biden, regulators increased sector scrutiny, taking legal action against major exchanges such as Coinbase, Binance, and Kraken over concerns about fraud, money laundering, and consumer protection.
The crypto industry has been embroiled in several high-profile controversies, such as the conviction of Sam Bankman-Fried, founder of the now-defunct FTX exchange, for fraud, and the imprisonment of Binance founder Changpeng Zhao for money laundering.
Critics argue these incidents underscore risks within the sector, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promise to support innovation and entrepreneurship in emerging technologies.
His incoming administration has identified cryptocurrency regulation as one of several immediate priority areas, alongside energy production and immigration reform.
Multiple crypto advocates are reportedly among Trump’s financial supporters and potential cabinet appointments.
Industry and Regulatory Responses
While the SEC and Trump's representatives have not yet commented on the plans, industry experts suggest that the proposed measures could boost mainstream cryptocurrency adoption if implemented effectively.
However, it remains uncertain whether these measures will be introduced through a single executive order or multiple directives.
Cryptocurrency remains a divisive issue in U.S. financial policy, with ongoing debates about balancing innovation with investor and financial system protection.
Trump's proposed approach could influence the future of digital assets in the United States, indicating a potential shift in the global regulatory landscape.
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