On January 17, President-elect Donald Trump is gearing up to utilize his executive authority to alleviate the regulatory burden on cryptocurrency companies and advance the adoption of digital assets in the initial days of his administration, as disclosed by three informed individuals.
Expectedly, Trump will establish a crypto advisory council through an executive order, a concept he first put forth in July, as noted by two sources who preferred anonymity due to the private nature of the discussions.
Per Bloomberg News, Trump is set to issue an executive order forming a crypto council aimed at advising the government on crypto-friendly policies. One source indicated the council could potentially have up to 20 members.
Additionally, discussions among Trump's advisors have included the consideration of a separate executive order tasking the Securities and Exchange Commission with revoking the 2022 accounting guidance dubbed "SAB 121." This guidance has reportedly increased the cost for certain companies to hold cryptocurrencies on behalf of third parties.
Trump is also anticipated to halt "Operation Choke Point 2.0," a term used by crypto industry leaders to describe regulatory attempts to exclude crypto companies from the conventional financial system by instructing banks to deny them services. Bank regulators, however, deny the existence of such efforts.
It remains uncertain whether Trump will institute the changes through a single or multiple executive orders. Nevertheless, the envisioned outcome is to promptly convey strong support from the new administration for digital asset adoption.
Should these presumed policy instructions be implemented by the pertinent regulators, experts in regulation and cryptocurrency suggest that cryptocurrencies could significantly move towards mainstream acceptance.
This contrast Trump's stance with President Joe Biden's administration, which, to safeguard Americans from fraud and money laundering, has taken a more stringent approach towards crypto companies, including actions against Kraken and other prominent industry figures in federal court.
Critics of the cryptocurrency sector frequently allude to the legal troubles of notable crypto figures like Sam Bankman-Fried and Changpeng Zhao as evidence of the industry's risks.
A spokesperson for Trump, who has garnered support from numerous crypto backers and key cabinet members, did not immediately respond to a comment request. Similarly, the SEC did not provide an immediate response to an inquiry.
Alongside cryptocurrency oversight, Trump plans to address various other subjects through executive orders during the initial phase of his second presidential term. His team has pledged numerous executive orders concerning a broad array of topics.