Trump to Release Crypto-Friendly Executive Orders Early in Presidency
The new administration intends to lower regulatory hurdles and encourage the adoption of digital assets through executive measures.
WASHINGTON, Jan 17, 2025 — President-elect Donald Trump is preparing to issue a series of executive orders to reduce regulatory hurdles for cryptocurrency companies and promote the use of digital assets, according to sources familiar with the plans.
These orders are anticipated to be signed within the first few days of his administration.
Establishment of a Crypto Advisory Council
One planned measure is an executive order to create a cryptocurrency advisory council, an initiative Trump first suggested in July 2024. This council, which could have up to 20 members, would advise the government on policies to create a more supportive environment for the digital asset industry.
Bloomberg News reported on this development on Thursday.
Revising SEC Guidelines and Banking Practices
Trump's administration is also considering instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance known as SAB 121.
This guidance has faced criticism from industry stakeholders for making it too costly for certain companies, especially banks, to hold cryptocurrencies on behalf of third parties.
Another executive order is likely to target what cryptocurrency executives call 'Operation Choke Point 2.0,' a supposed effort by banking regulators to dissuade financial institutions from providing services to crypto-related businesses.
Regulators have denied the existence of such a campaign.
Wider Implications for the Cryptocurrency Industry
The anticipated measures represent a significant policy shift from the Biden administration's stricter stance on cryptocurrency oversight.
Under Biden, regulators increased scrutiny on the industry, pursuing legal actions against major exchanges such as Coinbase, Binance, and Kraken to address concerns about fraud, money laundering, and consumer protection.
The crypto industry has been involved in several high-profile controversies, including Sam Bankman-Fried's conviction for fraud related to the now-defunct FTX exchange and the imprisonment of Binance founder Changpeng Zhao for money laundering violations.
Critics argue these incidents highlight inherent sector risks, while supporters seek regulatory clarity to support legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promises to support innovation and entrepreneurship in emerging technologies.
His upcoming administration has indicated that cryptocurrency regulation is among several priority areas for prompt action, along with energy production and immigration reform.
Numerous crypto advocates are reportedly among Trump’s financial backers and potential cabinet members.
Industry and Regulatory Responses
While the SEC and Trump’s representatives have not immediately commented on the plans, industry experts suggest that if effectively implemented, the proposed measures could speed up the mainstream adoption of cryptocurrencies.
However, it remains uncertain whether these actions will be introduced as a single executive order or multiple directives.
Cryptocurrency remains a contentious issue within U.S. financial policy, with debates focused on balancing innovation with investor and broader financial system protection.
Trump’s proposed approach could shape the future of digital assets in the United States, signaling a potential shift in the global regulatory landscape.
These orders are anticipated to be signed within the first few days of his administration.
Establishment of a Crypto Advisory Council
One planned measure is an executive order to create a cryptocurrency advisory council, an initiative Trump first suggested in July 2024. This council, which could have up to 20 members, would advise the government on policies to create a more supportive environment for the digital asset industry.
Bloomberg News reported on this development on Thursday.
Revising SEC Guidelines and Banking Practices
Trump's administration is also considering instructing the Securities and Exchange Commission (SEC) to withdraw the 2022 accounting guidance known as SAB 121.
This guidance has faced criticism from industry stakeholders for making it too costly for certain companies, especially banks, to hold cryptocurrencies on behalf of third parties.
Another executive order is likely to target what cryptocurrency executives call 'Operation Choke Point 2.0,' a supposed effort by banking regulators to dissuade financial institutions from providing services to crypto-related businesses.
Regulators have denied the existence of such a campaign.
Wider Implications for the Cryptocurrency Industry
The anticipated measures represent a significant policy shift from the Biden administration's stricter stance on cryptocurrency oversight.
Under Biden, regulators increased scrutiny on the industry, pursuing legal actions against major exchanges such as Coinbase, Binance, and Kraken to address concerns about fraud, money laundering, and consumer protection.
The crypto industry has been involved in several high-profile controversies, including Sam Bankman-Fried's conviction for fraud related to the now-defunct FTX exchange and the imprisonment of Binance founder Changpeng Zhao for money laundering violations.
Critics argue these incidents highlight inherent sector risks, while supporters seek regulatory clarity to support legitimate businesses.
Political and Economic Context
Trump's pro-crypto agenda aligns with his broader campaign promises to support innovation and entrepreneurship in emerging technologies.
His upcoming administration has indicated that cryptocurrency regulation is among several priority areas for prompt action, along with energy production and immigration reform.
Numerous crypto advocates are reportedly among Trump’s financial backers and potential cabinet members.
Industry and Regulatory Responses
While the SEC and Trump’s representatives have not immediately commented on the plans, industry experts suggest that if effectively implemented, the proposed measures could speed up the mainstream adoption of cryptocurrencies.
However, it remains uncertain whether these actions will be introduced as a single executive order or multiple directives.
Cryptocurrency remains a contentious issue within U.S. financial policy, with debates focused on balancing innovation with investor and broader financial system protection.
Trump’s proposed approach could shape the future of digital assets in the United States, signaling a potential shift in the global regulatory landscape.
