President-elect Donald Trump is set to use his executive powers to ease the regulatory burden on cryptocurrency companies and promote digital asset adoption within his first few days in office, according to sources familiar with the plan.
Trump, who campaigned as a “crypto president,” is expected to sign an executive order establishing a crypto advisory council, an idea he proposed in July. The council, which could have up to 20 members, would advise the government on crypto-friendly policies, as reported by Bloomberg News.
Advisers have also discussed using an executive order to instruct the Securities and Exchange Commission (SEC) to rescind the 2022 accounting guidance “SAB 121,” which has made it expensive for certain companies, particularly banks, to hold cryptocurrencies on behalf of third parties.
Trump is also expected to end “Operation Choke Point 2.0,” a term used by crypto executives to describe alleged efforts by bank regulators to prevent crypto companies from accessing services. Bank regulators have denied these claims.
Sources indicate that Trump may implement these changes through one or more executive orders, signaling strong support for digital asset adoption. If carried out, these policies could push cryptocurrencies further into the mainstream, which contrasts with the Biden administration’s regulatory crackdown on crypto companies to protect against fraud and money laundering.
Critics of the crypto industry point to the cases of Sam Bankman-Fried and Changpeng Zhao, whose legal troubles highlight the risks of the industry. Trump’s support for crypto, however, comes amid his backing from several prominent crypto advocates.
Cryptocurrency regulation is just one of several areas Trump plans to address with executive orders in the early days of his second term, alongside issues like energy production and illegal immigration.
