In his initial days after taking office, President-elect Donald Trump is set to leverage his executive authority to alleviate regulatory pressures on cryptocurrency firms and encourage the broader acceptance of digital assets, as per insights from three individuals familiar with the strategy.
Trump, who actively sought support from the cryptocurrency community during his campaign by pledging to champion their cause, is anticipated to establish a council dedicated to advising on cryptocurrency matters. This council, which he initially proposed in July, is expected to be formed through an executive order, according to two anonymous sources involved in the discussions.
Reports from Bloomberg News on Thursday highlighted Trump’s intention to form this advisory body, aimed at guiding the administration on policies favorable to cryptocurrencies. The council is projected to include up to 20 members, as mentioned by one source.
Additionally, Trump’s team is considering an executive order to revoke the 2022 accounting guideline “SAB 121,” which has imposed significant costs on companies, especially banks, for managing cryptocurrencies for clients.
Further, Trump plans to dismantle what the crypto industry refers to as “Operation Choke Point 2.0,” a perceived strategy by banking regulators to exclude crypto businesses from the financial system by pressuring banks to deny them services. Although bank regulators contest the existence of such a campaign, the crypto community remains skeptical.
The specifics of whether these changes will be enacted through a single or multiple executive orders remain unclear. However, the overarching aim is to swiftly demonstrate the administration’s robust support for digital assets.
Regulatory and cryptocurrency experts believe that these policy directives could significantly mainstream cryptocurrencies, marking a departure from the stringent regulatory stance of the Biden administration, which has targeted major crypto exchanges like Coinbase, Binance, and Kraken to combat fraud and money laundering.
The cryptocurrency sector has faced criticism, particularly following the legal troubles of prominent figures like Sam Bankman-Fried and Changpeng Zhao, who have been penalized for fraud and money laundering, respectively. These incidents have fueled debates over the risks associated with the industry.
Trump, who has several cryptocurrency proponents among his financial supporters and key cabinet selections, has not yet commented on these developments. Similarly, the SEC has remained silent on the matter.
Beyond cryptocurrency, Trump’s agenda includes a series of executive orders addressing various issues from energy production to immigration policies, signaling a busy start to his potential second term.
