DAVOS, Switzerland, Jan 20 (Reuters) - Jeremy Allaire, CEO of Circle, anticipates that U.S. executive orders will be issued "imminently," allowing banks to engage in crypto trading, offer crypto investments to affluent clients, and include it in their portfolios.
Circle, the creator of the USDC stablecoin, a digital token tied to the U.S. dollar's value, holds the position of the world's second-largest stablecoin by market value and ranks eighth among cryptocurrencies according to CoinGecko.
Trump has pledged to be a "crypto president" and is projected to issue executive orders post-inauguration to streamline crypto regulations and encourage broad adoption of digital assets.
Under the incoming president, the value of digital assets rose to nearly $12 billion in market value on Monday.
Allaire expressed his desire for the repeal of the Securities and Exchange Commission's Staff Accounting Bulletin 121, which he mentioned "effectively penalized banks, financial institutions, and corporations for holding crypto assets on their balance sheets."
During an interview with Reuters Global Markets Forum at the onset of the World Economic Forum's annual gathering in Davos this week, Allaire remarked, "That's something I think to watch closely in terms of EOs."
He highlighted his strong support for the repeal, expressing hope that President Trump would take necessary action, noting that Circle already collaborates with banks as commercial partners.
Allaire foresees a surge in Congressional activity regarding digital asset regulations, noting, "We expect Committee work to be very active in the coming weeks."
Expectations among attendees in Davos echo this sentiment, with Faryar Shirzad, Chief Policy Officer at Coinbase, stating, "We expect the new SEC will take action," emphasizing the potential for banks to have a more significant role in the custodial space.
Shirzad emphasized, "Broad-based adoption (of crypto) is good for the ecosystem, so we're fully supportive of other participants entering the market."
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