President-elect Donald Trump is poised to enact several executive orders on January 20, his first day back in office, with significant implications for the cryptocurrency sector. According to reports, these directives aim to address issues such as crypto de-banking and the repeal of specific banking policies that have been contentious within the industry.
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One anticipated executive order seeks to counteract the practice of “crypto de-banking,” wherein financial institutions deny services to cryptocurrency businesses. Industry leaders have criticized the previous administration for allegedly pressuring banks to sever ties with crypto firms, a strategy informally known as “Operation ChokePoint 2.0.” By intervening, the Trump administration intends to facilitate better access to banking services for crypto enterprises, promoting growth and innovation within the sector.
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Another expected directive involves the reversal of a banking accounting policy introduced in March 2022 through the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 (SAB 121). This policy mandates that banks holding cryptocurrencies must record these assets as liabilities on their balance sheets, a requirement that has faced opposition from crypto advocates. The incoming administration’s move to rescind this policy is seen as an effort to alleviate regulatory burdens and encourage institutional participation in the crypto market.
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These anticipated actions align with President-elect Trump’s campaign promises to position the United States as a global leader in cryptocurrency and blockchain technology. During his campaign, Trump pledged to establish a U.S. Bitcoin reserve and reduce regulatory scrutiny of the industry. The forthcoming executive orders are expected to set the tone for the administration’s approach to digital assets, signaling a more crypto-friendly regulatory environment.
