President Donald Trump has been planning to leverage his executive capabilities to minimise the regulatory difficulties faced by crypto companies and facilitate digital asset adoption.
As recounted by Reuters based on the information provided by three individuals familiar with the plan, Trump is set to utilise his executive powers to mitigate the regulatory hurdles that crypto participants face in the US. According to two of the sources who requested anonymity due to privacy concerns, the US president is projected to sign an executive order to develop a crypto advisory council, an idea initially presented in July 2024, which could support the Government in instituting crypto-friendly policies. The council is set to include as many as 20 members.
Donald Trump’s advisers were also in discussions over leveraging an executive order to command the Securities and Exchange Commission (SEC) to withdraw 2022 accounting guidance known as ‘SAB 121’, which scaled the costs for some companies, especially banks, to hold cryptocurrencies on behalf of third parties. Additionally, the president is projected to order the end of ‘Operation Choke Point 2.0’, the term cryptocurrency executives leverage to describe what they say has been a concerted effort by financial regulators to remove crypto companies from the traditional financial system by directing banks to deny them solutions. However, bank regulators denied that these efforts exist.
Furthermore, it is still unclear whether Trump would direct the modifications through one or several executive orders. Despite this, sources cited by Reuters stated that the objective was to send a strong message that the new US administration highly supports digital asset adoption. If these orders get implemented by relevant regulatory bodies, Donald Trump’s anticipated policy directives could potentially advance cryptocurrencies into the mainstream. When asked to comment on the matter, a representative for Trump did not immediately respond to the request while the SEC did not provide any details.
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