Trump Plans to Release Crypto-Friendly Executive Orders Early in Presidency
The new administration intends to lower regulatory obstacles and encourage the adoption of digital assets through executive measures.
WASHINGTON, Jan 17, 2025 — President-elect Donald Trump plans to implement several executive orders to ease regulatory constraints on cryptocurrency companies and promote the use of digital assets, according to insiders familiar with the strategy.
These orders are anticipated to be signed within the first few days of his tenure.
Establishment of a Crypto Advisory Council
One of the expected actions includes creating a cryptocurrency advisory council, a proposal Trump initially introduced in July 2024. The council, potentially comprising up to 20 members, would advise the government on developing a more supportive 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 considering instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance labeled SAB 121.
This guidance has faced criticism from industry figures for being prohibitively costly for certain entities, especially banks, to hold cryptocurrencies on behalf of third parties.
Another anticipated executive order aims to address what cryptocurrency leaders call 'Operation Choke Point 2.0,' an alleged effort by banking regulators to discourage banks from offering services to crypto-related businesses.
Regulators have denied any such campaign.
Broader Implications for the Cryptocurrency Industry
The expected actions indicate a major policy shift from the Biden administration's stringent stance on cryptocurrency oversight.
Under Biden, the scrutiny of the sector intensified, with 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, such as the fraud conviction of Sam Bankman-Fried, FTX's founder, and the imprisonment of Binance founder Changpeng Zhao for money laundering.
Critics contend these incidents reveal inherent risks within the industry, while supporters call for regulatory clarity to bolster legitimate businesses.
Political and Economic Context
Trump's pro-crypto approach is consistent with his broader campaign themes, which emphasized supporting innovation and entrepreneurship in emerging technologies.
His incoming administration has announced that cryptocurrency regulation is among several immediate priority areas, alongside energy production and immigration reform.
Several crypto advocates are reported to be among Trump’s financial backers and potential cabinet selections.
Industry and Regulatory Reactions
While the SEC and Trump’s representatives have not commented on the plans yet, industry experts suggest the proposed actions could hasten mainstream cryptocurrency adoption if executed effectively.
However, it remains uncertain whether these measures will be enacted through a single executive order or multiple directives.
Cryptocurrency continues to be a divisive topic in U.S. financial policy debates, focusing on balancing innovation with investor protection and financial system security.
Trump's proposed strategy could redefine the future of digital assets in the U.S., potentially signaling a shift in the global regulatory framework.
These orders are anticipated to be signed within the first few days of his tenure.
Establishment of a Crypto Advisory Council
One of the expected actions includes creating a cryptocurrency advisory council, a proposal Trump initially introduced in July 2024. The council, potentially comprising up to 20 members, would advise the government on developing a more supportive 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 considering instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance labeled SAB 121.
This guidance has faced criticism from industry figures for being prohibitively costly for certain entities, especially banks, to hold cryptocurrencies on behalf of third parties.
Another anticipated executive order aims to address what cryptocurrency leaders call 'Operation Choke Point 2.0,' an alleged effort by banking regulators to discourage banks from offering services to crypto-related businesses.
Regulators have denied any such campaign.
Broader Implications for the Cryptocurrency Industry
The expected actions indicate a major policy shift from the Biden administration's stringent stance on cryptocurrency oversight.
Under Biden, the scrutiny of the sector intensified, with 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, such as the fraud conviction of Sam Bankman-Fried, FTX's founder, and the imprisonment of Binance founder Changpeng Zhao for money laundering.
Critics contend these incidents reveal inherent risks within the industry, while supporters call for regulatory clarity to bolster legitimate businesses.
Political and Economic Context
Trump's pro-crypto approach is consistent with his broader campaign themes, which emphasized supporting innovation and entrepreneurship in emerging technologies.
His incoming administration has announced that cryptocurrency regulation is among several immediate priority areas, alongside energy production and immigration reform.
Several crypto advocates are reported to be among Trump’s financial backers and potential cabinet selections.
Industry and Regulatory Reactions
While the SEC and Trump’s representatives have not commented on the plans yet, industry experts suggest the proposed actions could hasten mainstream cryptocurrency adoption if executed effectively.
However, it remains uncertain whether these measures will be enacted through a single executive order or multiple directives.
Cryptocurrency continues to be a divisive topic in U.S. financial policy debates, focusing on balancing innovation with investor protection and financial system security.
Trump's proposed strategy could redefine the future of digital assets in the U.S., potentially signaling a shift in the global regulatory framework.
