President-elect Donald Trump reportedly plans to use his executive authority to support cryptocurrency companies and promote broader adoption of digital assets during the early days of his administration. According to Reuters. The initiative represents a sharp departure from the regulatory approach under President Joe Biden’s administration, which has taken tough measures to address fraud and money laundering in the cryptocurrency sector.
Executive orders to indicate support for encryption
Trump is expected to issue an executive order creating a cryptocurrency advisory board, a proposal he initially proposed in July. As reported by Reuters. Two sources familiar with the discussions indicated that this council could include up to 20 members tasked with advising the government on creating cryptocurrency-friendly policies. Bloomberg News was the first to publish the plan to establish such a council.
Additionally, Trump’s team has reportedly discussed reversing specific regulatory measures that have posed challenges for cryptocurrency companies. According to ReutersOne potential target is the Securities and Exchange Commission’s (SEC) 2022 accounting guidance known as “SAB 121,” which has been criticized for increasing costs for companies, especially banks, trying to hold cryptocurrencies for third parties. This measure could ease financial burdens and facilitate greater participation in the cryptocurrency market.
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The controversial ‘Operation Choke Point 2.0’ under the microscope
Another area of focus for the incoming administration is addressing concerns raised by cryptocurrency executives around “Operation Choke Point 2.0.” This term, used by industry insiders, describes what they see as a coordinated effort by banking regulators to restrict cryptocurrency companies’ access to traditional financial services. While banking regulators have denied the existence of such an initiative, sources cited by Reuters indicate that Trump intends to issue an executive order to stop these practices.
Wider implications for the cryptocurrency sector
If implemented, these policy changes could significantly impact the cryptocurrency industry by promoting a more supportive regulatory environment. Experts in both the regulatory and cryptocurrency fields told Reuters that such measures could accelerate mainstream adoption of digital assets, signaling a new era for the sector under the Trump administration.
This approach stands in stark contrast to the policies of the Biden administration, which has taken legal action against major cryptocurrency exchanges, including Coinbase, Binance, and Kraken, in efforts to combat illicit activities and protect consumers.
source: Reuters
