On January 13, 2025, President-elect Donald Trump is set to launch his presidency with impactful executive orders aimed at reshaping the cryptocurrency sector.
Crypto Advisory Council: A New Era of Policy Guidance?
One of the initial actions will be the formation of a presidential crypto council. This council will likely include around 20 leaders from the cryptocurrency space, primarily comprised of CEOs and founders. These industry veterans are expected to provide policy guidance, advise the president on digital asset matters, and help shape the direction of the industry during Trump's term. This initiative echoes growing calls from the crypto community for a structured dialogue with regulators and lawmakers.
Addressing SAB 121
The Trump administration also focuses on revising the SEC's controversial accounting rule, SAB 121. This rule requires firms that custody cryptocurrency to treat their clients' digital assets as liabilities on their balance sheets. A change could ease financial reporting and encourage U.S. banks to engage with digital assets.
Proposed Reforms and International Collaboration
Other proposed reforms include creating a crypto working group involving officials from the SEC and the CFTC. This group aims to streamline efforts to regulate digital assets. Furthermore, plans to foster international cooperation on cryptocurrency and address the 'de-banking' issue for crypto firms are underway.
The Trump administration is making significant strides towards actively engaging with the cryptocurrency industry. These changes are expected to contribute positively to the regulation and development of digital assets.
