Trump to boost the cryptocurrency industry with executive orders

President-elect Donald Trump is planning to leverage his executive powers in the early days of his second term to reduce the regulatory burdens faced by cryptocurrency companies and promote digital asset adoption, according to multiple sources briefed on the plans.

Trump, who has already declared his intention to be a “crypto president,” is anticipated to sign an executive order creating an advisory council for cryptocurrencies. This initiative, first proposed by Trump in July, would help advise the government on crypto-friendly policies. Sources indicated that the council could consist of up to 20 members.

In addition to the advisory council, Trump’s administration is considering directing the Securities and Exchange Commission (SEC) to revoke 2022 accounting guidance known as “SAB 121,” which critics argue has made it expensive for some companies, particularly banks, to hold cryptocurrencies on behalf of third parties. This move could reduce regulatory hurdles for companies involved in cryptocurrency storage.

Trump is also expected to order the termination of “Operation Choke Point 2.0,” a term used by crypto executives to describe what they see as efforts by bank regulators to exclude cryptocurrency businesses from the traditional financial system by pressuring banks to deny them services. Bank regulators have denied that such an effort exists.

Sources say these expected changes aim to send a clear signal that the new administration is supportive of digital asset adoption. If enacted by relevant regulators, these policy shifts could potentially push cryptocurrencies further into the mainstream, according to both regulatory and crypto industry experts.

This move stands in stark contrast to the approach taken by President Joe Biden’s administration, which has been focused on cracking down on cryptocurrency companies in efforts to protect consumers from fraud and money laundering. Under Biden, agencies like the SEC have launched lawsuits against major exchanges such as Coinbase, Binance, and Kraken.

Despite the positive outlook from crypto advocates, the industry has faced significant scrutiny in recent years, especially after the collapse of high-profile crypto figures like Sam Bankman-Fried, who was sentenced to 25 years in prison for fraud, and Binance founder Changpeng Zhao, who briefly faced imprisonment for money laundering violations.

A representative for Trump, who counts multiple crypto advocates among his financial backers, did not immediately respond to requests for comment. The SEC also did not offer any immediate feedback on the matter.