In a significant policy move, President-elect Donald Trump is preparing to use his executive authority to reduce regulatory hurdles for cryptocurrency companies and promote digital asset adoption during the early days of his administration, according to three individuals familiar with the plans.
Trump, who positioned himself as a “crypto president” during his campaign, plans to sign an executive order establishing a cryptocurrency advisory council, sources revealed. This council, an idea he initially proposed in July, is expected to guide the government in formulating crypto-friendly policies. According to one source, the council could comprise up to 20 members. Bloomberg News first reported on Thursday that this executive order is in the works.
In addition, Trump’s team is reportedly considering another executive order aimed at directing the Securities and Exchange Commission (SEC) to rescind the 2022 accounting guidance known as “SAB 121.” This rule has been criticized by industry players for making it prohibitively expensive for banks and other companies to hold cryptocurrencies on behalf of clients.
Another potential policy shift involves ending what cryptocurrency executives have dubbed “Operation Choke Point 2.0.” This term refers to alleged efforts by bank regulators to cut off crypto companies from traditional financial services by discouraging banks from providing services to them. While regulators have denied such a coordinated effort, the move would be seen as a major step toward integrating cryptocurrencies into the mainstream financial system.
Although it is unclear whether these directives will come through a single executive order or multiple actions, sources suggest Trump’s overarching goal is to send a clear message: his administration intends to champion digital asset innovation and adoption.
These proposed measures mark a sharp departure from the approach taken by the Biden administration, which focused on protecting consumers from fraud and money laundering. Under Biden, regulatory agencies took aggressive actions against crypto companies, filing lawsuits against major exchanges such as Coinbase, Binance, and Kraken.
If implemented effectively, Trump’s policy directives could redefine the regulatory landscape, signaling a new era for cryptocurrencies in the United States. Experts believe these changes have the potential to push digital assets into the financial mainstream, aligning with Trump’s vision of making the U.S. a global leader in crypto innovation.
