President-elect Donald Trump is poised to take swift action to reshape cryptocurrency regulation in the United States, with plans to sign a series of executive orders promoting digital asset adoption and reducing regulatory barriers in the early days of his administration, according to insiders familiar with the discussions.
Trump, who positioned himself as a “crypto president” during his campaign, is reportedly planning to create a cryptocurrency advisory council through an executive order. The council, first proposed by Trump in July, is expected to include as many as 20 members, said two anonymous sources briefed on the matter.
According to Bloomberg News, which initially reported the move, the council will serve as an advisory body to assist the government in developing crypto-friendly policies. This initiative is part of Trump’s broader commitment to fostering innovation in the digital asset space.
Reversing Biden-Era Policies
One of the anticipated executive orders will instruct the Securities and Exchange Commission (SEC) to overturn its 2022 accounting guidance, known as “SAB 121.” This rule, criticized by the crypto industry, has reportedly made it prohibitively expensive for banks to hold cryptocurrencies for third parties.
Trump is also expected to end what industry executives have dubbed “Operation Choke Point 2.0,” a purported effort by bank regulators to deny services to cryptocurrency companies. While bank regulators have denied the existence of such a campaign, crypto executives argue it has stifled the industry’s access to traditional financial systems.
Though it remains unclear whether Trump will implement these changes through one or multiple executive orders, sources close to the discussions have indicated that the goal is to send a clear and immediate signal of the administration’s support for digital assets.
A New Direction for Cryptocurrency Policy
Experts believe Trump’s proposed actions could bring cryptocurrencies into the mainstream, in stark contrast to the regulatory approach under President Joe Biden. The Biden administration, citing concerns over fraud and money laundering, pursued aggressive enforcement measures, suing major exchanges such as Coinbase, Binance, and Kraken.
Critics of the crypto sector, however, point to the scandals involving industry figures like Sam Bankman-Fried, who received a 25-year prison sentence for fraud, and Binance founder Changpeng Zhao, who briefly served time for money laundering violations, as evidence of the industry’s risks.
Despite these controversies, Trump’s plans have been welcomed by many within the crypto community. “If implemented, these changes could fundamentally alter the trajectory of digital assets in the United States,” said regulatory and crypto experts.
Broader Executive Action Agenda
Cryptocurrency regulation is just one of several key priorities Trump aims to address through executive orders in his second term. His administration has promised sweeping directives on issues ranging from energy production to immigration.
As Trump prepares to take office, his team has remained tight-lipped about specific timelines. Representatives for Trump and the SEC did not immediately respond to requests for comment.
With expectations high, Trump’s approach to cryptocurrency is set to chart a bold new course for an industry seeking to cement its place in the global financial system.