Circle CEO Jeremy Allaire expressed concerns over new SEC rules hindering banks and financial institutions from engaging with cryptocurrencies.
Allaire’s Commentary on Current Rules
Circle CEO Jeremy Allaire claims a U.S. SEC rule makes it difficult for banks and corporations to hold crypto assets, and calls for its removal.
Impact of Rules on Banks and Crypto
The rule, known as Accounting Bulletin 121, increases the costs for banks when accounting for cryptocurrencies as liabilities, which increases capital requirements, as well as increases accounting and auditing costs. This makes working with cryptocurrencies more expensive and difficult.
Expectations for Regulatory Changes
Allaire hopes that President Trump, a known crypto supporter, will act to repeal the rule. However, despite expectations of imminent executive orders to reduce crypto regulation, their exact timing remains unclear.
Circle and other industry representatives are optimistic about regulatory changes that would facilitate banking interaction with digital assets and support broader integration.
