Focus on Crypto De-Banking and Banking Reform
Donald Trump’s return to the White House on January 20 is expected to include swift action on cryptocurrency policies. According to a report by The Washington Post, Trump will prioritize repealing regulations introduced under the Biden administration, which required banks holding cryptocurrency to list digital assets as liabilities.
The rule, stemming from the SEC’s Staff Accounting Bulletin No. 121 (SAB 121) issued in March 2022, has been widely criticized by the crypto industry. Advocates argue the policy creates unnecessary financial strain on banks dealing with cryptocurrency, effectively discouraging traditional institutions from engaging with the sector.
Sources close to Trump’s transition team revealed that reversing SAB 121 is a top priority, with speculation that an executive order addressing this issue could be signed on his first day in office.
Combating “Crypto De-Banking”
The Biden administration has faced criticism for what the crypto industry dubs “Operation ChokePoint 2.0,” a purported campaign to limit the sector’s access to financial services. Trump’s incoming administration is expected to reverse this trend by issuing executive orders aimed at safeguarding the crypto industry’s ability to bank with traditional financial institutions.
Industry leaders have lobbied Trump to take decisive action within his first 100 days. According to David Sack, Trump’s advisor on cryptocurrency and artificial intelligence, these measures will be integral to establishing the U.S. as a global leader in digital finance.
Bitcoin Strategic Reserve on the Agenda
During his campaign, Trump pledged to reduce regulatory barriers and establish a U.S. Bitcoin strategic reserve. This initiative aligns with similar moves by several U.S. states, including New Hampshire, North Dakota, Texas, and Pennsylvania, which have proposed legislation to include Bitcoin in their treasury reserves.
Texas, for instance, introduced the Strategic Bitcoin Reserve Act, mandating the state comptroller to hold Bitcoin as a reserve asset for at least five years. Ohio and Pennsylvania are also pursuing bills that allocate a portion of their state treasuries to Bitcoin as a hedge against economic uncertainty.
Tech Policy Revisions and Broader Implications
Trump’s administration is also expected to revisit broader technology policies, including artificial intelligence regulations introduced under Biden. David Sack hinted at plans to rescind Biden’s 2023 AI executive order, which critics claim focused too heavily on equity considerations.
Key advisors, including venture capitalist Marc Andreessen, have played a significant role in shaping Trump’s tech-focused agenda. Andreessen’s influence, rooted in his investments in technology and crypto, suggests a stronger emphasis on innovation and deregulation under Trump’s leadership.
What Lies Ahead for U.S. Crypto?
Trump’s anticipated executive orders could catalyze a significant shift in the U.S. cryptocurrency landscape, potentially addressing long-standing concerns about banking access and regulatory clarity. These moves aim to foster a more favorable environment for digital assets, bolstering investor confidence and solidifying the U.S.’s role as a leader in the global crypto economy.
