Trump Plans to Release Crypto-Friendly Executive Orders Early in His Presidency
The new administration intends to break down regulatory obstacles and encourage the adoption of digital assets through executive measures.
WASHINGTON, Jan 17, 2025 — President-elect Donald Trump is preparing to sign a series of executive orders designed to ease regulatory burdens on cryptocurrency firms and promote the use of digital assets, according to insiders knowledgeable about the plans.
These orders are expected to be enacted within the initial days of his presidency.
Formation of a Crypto Advisory Council
One of the expected actions is an executive order to create a cryptocurrency advisory council, a proposal Trump introduced in July 2024. This council, potentially comprising up to 20 members, would counsel the government on policies to cultivate a more supportive environment for the digital asset industry.
Bloomberg News initially reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
Trump's team is also contemplating directing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance known as SAB 121.
Industry players have criticized this guidance for making it excessively costly for certain companies, especially banks, to provide cryptocurrency custody services for third parties.
Another executive order is likely to address what cryptocurrency executives call 'Operation Choke Point 2.0,' a purported effort by banking regulators to deter financial institutions from offering services to crypto businesses.
Regulators have denied the existence of such a campaign.
Larger Impacts on the Cryptocurrency Industry
These anticipated measures suggest a marked policy shift from the Biden administration’s tougher approach to cryptocurrency regulation.
Under Biden, regulators heightened scrutiny of the sector, pursuing legal actions against major exchanges like Coinbase, Binance, and Kraken to tackle issues of fraud, money laundering, and consumer protection.
The crypto industry has been embroiled in several high-profile scandals, including the fraud conviction of Sam Bankman-Fried, founder of the now-defunct FTX exchange, and the money laundering conviction of Binance founder Changpeng Zhao.
Critics assert that these incidents expose inherent risks in the sector, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto stance aligns with his broader campaign promises to foster innovation and entrepreneurship in emerging technologies.
His incoming administration has indicated that cryptocurrency regulation is among several priority areas for immediate attention, along with energy production and immigration reform.
Several crypto advocates are reportedly among Trump's financial supporters and potential cabinet appointees.
Industry and Regulatory Reactions
Although the SEC and Trump's representatives have not yet commented on the plans, industry experts believe that the proposed measures could hasten the mainstream adoption of cryptocurrencies if effectively implemented.
However, it remains uncertain whether these actions will come via a single executive order or multiple directives.
Cryptocurrency remains a divisive issue in U.S. financial policy, with debates focusing on balancing innovation with investor protection and the stability of the broader financial system.
Trump's proposed strategy could shape the future of digital assets in the United States, potentially indicating a shift in the global regulatory landscape.
These orders are expected to be enacted within the initial days of his presidency.
Formation of a Crypto Advisory Council
One of the expected actions is an executive order to create a cryptocurrency advisory council, a proposal Trump introduced in July 2024. This council, potentially comprising up to 20 members, would counsel the government on policies to cultivate a more supportive environment for the digital asset industry.
Bloomberg News initially reported this development on Thursday.
Revisions to SEC Guidelines and Banking Practices
Trump's team is also contemplating directing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance known as SAB 121.
Industry players have criticized this guidance for making it excessively costly for certain companies, especially banks, to provide cryptocurrency custody services for third parties.
Another executive order is likely to address what cryptocurrency executives call 'Operation Choke Point 2.0,' a purported effort by banking regulators to deter financial institutions from offering services to crypto businesses.
Regulators have denied the existence of such a campaign.
Larger Impacts on the Cryptocurrency Industry
These anticipated measures suggest a marked policy shift from the Biden administration’s tougher approach to cryptocurrency regulation.
Under Biden, regulators heightened scrutiny of the sector, pursuing legal actions against major exchanges like Coinbase, Binance, and Kraken to tackle issues of fraud, money laundering, and consumer protection.
The crypto industry has been embroiled in several high-profile scandals, including the fraud conviction of Sam Bankman-Fried, founder of the now-defunct FTX exchange, and the money laundering conviction of Binance founder Changpeng Zhao.
Critics assert that these incidents expose inherent risks in the sector, while supporters call for regulatory clarity to aid legitimate businesses.
Political and Economic Context
Trump's pro-crypto stance aligns with his broader campaign promises to foster innovation and entrepreneurship in emerging technologies.
His incoming administration has indicated that cryptocurrency regulation is among several priority areas for immediate attention, along with energy production and immigration reform.
Several crypto advocates are reportedly among Trump's financial supporters and potential cabinet appointees.
Industry and Regulatory Reactions
Although the SEC and Trump's representatives have not yet commented on the plans, industry experts believe that the proposed measures could hasten the mainstream adoption of cryptocurrencies if effectively implemented.
However, it remains uncertain whether these actions will come via a single executive order or multiple directives.
Cryptocurrency remains a divisive issue in U.S. financial policy, with debates focusing on balancing innovation with investor protection and the stability of the broader financial system.
Trump's proposed strategy could shape the future of digital assets in the United States, potentially indicating a shift in the global regulatory landscape.