Trump to Release Crypto-Friendly Executive Orders Early in Presidency
The new administration intends to lower regulatory hurdles and encourage the adoption of digital assets through executive measures.
WASHINGTON, Jan 17, 2025 — President-elect Donald Trump plans to sign a series of executive orders to reduce regulatory restrictions on cryptocurrency companies and promote the use of digital assets, according to informed sources.
These orders are expected to be enacted in the initial days of his presidency.
Establishment of a Cryptocurrency Advisory Council
One of the expected initiatives is an executive order to create a cryptocurrency advisory council, a proposal Trump initially introduced in July 2024. This council, potentially comprising up to 20 members, would be responsible for advising the government on policies to support a more favorable environment for the digital asset industry.
Bloomberg News first reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
Trump’s administration is also contemplating instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guideline known as SAB 121.
This guidance has faced criticism from industry figures for making it excessively costly for certain companies, especially banks, to hold cryptocurrencies on behalf of clients.
Another executive order is anticipated to address what cryptocurrency executives describe as 'Operation Choke Point 2.0,' a supposed campaign by banking regulators to deter financial institutions from offering services to crypto-related businesses.
Regulators have denied the existence of such a campaign.
Wider Implications for the Cryptocurrency Sector
The proposed measures represent a notable policy shift from the Biden administration’s more stringent stance on cryptocurrency regulation.
Under Biden, regulators intensified their scrutiny of the sector, taking legal actions against major exchanges like Coinbase, Binance, and Kraken to tackle issues related to fraud, money laundering, and consumer protection.
The crypto sector has been embroiled in several high-profile scandals, 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 offenses.
Critics argue these events highlight the sector’s inherent risks, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promises to support innovation and entrepreneurship in emerging technologies.
His incoming administration has indicated that cryptocurrency regulation is among several priority areas for immediate action, along with energy production and immigration reform.
Several crypto advocates are reported to be among Trump’s financial supporters and potential cabinet members.
Industry and Regulatory Reactions
While the SEC and Trump's representatives have not provided immediate comments on these plans, industry experts suggest that the proposed measures could expedite the mainstream adoption of cryptocurrencies if implemented successfully.
However, it is uncertain whether these initiatives will be introduced through a single executive order or several directives.
Cryptocurrency remains a contentious issue in U.S. financial policy, with ongoing debates on balancing innovation with the protection of investors and the broader financial system.
Trump's proposed approach may 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 enacted in the initial days of his presidency.
Establishment of a Cryptocurrency Advisory Council
One of the expected initiatives is an executive order to create a cryptocurrency advisory council, a proposal Trump initially introduced in July 2024. This council, potentially comprising up to 20 members, would be responsible for advising the government on policies to support a more favorable environment for the digital asset industry.
Bloomberg News first reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
Trump’s administration is also contemplating instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guideline known as SAB 121.
This guidance has faced criticism from industry figures for making it excessively costly for certain companies, especially banks, to hold cryptocurrencies on behalf of clients.
Another executive order is anticipated to address what cryptocurrency executives describe as 'Operation Choke Point 2.0,' a supposed campaign by banking regulators to deter financial institutions from offering services to crypto-related businesses.
Regulators have denied the existence of such a campaign.
Wider Implications for the Cryptocurrency Sector
The proposed measures represent a notable policy shift from the Biden administration’s more stringent stance on cryptocurrency regulation.
Under Biden, regulators intensified their scrutiny of the sector, taking legal actions against major exchanges like Coinbase, Binance, and Kraken to tackle issues related to fraud, money laundering, and consumer protection.
The crypto sector has been embroiled in several high-profile scandals, 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 offenses.
Critics argue these events highlight the sector’s inherent risks, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promises to support innovation and entrepreneurship in emerging technologies.
His incoming administration has indicated that cryptocurrency regulation is among several priority areas for immediate action, along with energy production and immigration reform.
Several crypto advocates are reported to be among Trump’s financial supporters and potential cabinet members.
Industry and Regulatory Reactions
While the SEC and Trump's representatives have not provided immediate comments on these plans, industry experts suggest that the proposed measures could expedite the mainstream adoption of cryptocurrencies if implemented successfully.
However, it is uncertain whether these initiatives will be introduced through a single executive order or several directives.
Cryptocurrency remains a contentious issue in U.S. financial policy, with ongoing debates on balancing innovation with the protection of investors and the broader financial system.
Trump's proposed approach may influence the future of digital assets in the United States, indicating a potential shift in the global regulatory landscape.
