By Gram Slattery, Chris Prentice and Jarrett Renshaw
WASHINGTON (Reuters) – President-elect Donald Trump plans to use his executive powers to reduce the regulatory burden facing cryptocurrency companies and promote the adoption of digital assets in his first days in office, according to three people briefed on the plan.
Trump, who courted cryptocurrency during the election campaign with promises of being a “crypto president,” is expected to sign an executive order creating a cryptocurrency advisory council, an idea he first floated in July, two of the sources said. They requested anonymity to discuss private deliberations.
Bloomberg News first reported on Thursday that Trump planned to issue an executive order to create a crypto council, which would help advise the government on cryptocurrency-friendly policies. It could have up to 20 members, according to one of the sources.
Trump advisers have also discussed using an executive order to direct the Securities and Exchange Commission to rescind the 2022 accounting guidance known as “SAB 121,” which has made it too costly for some companies, particularly banks. , holding cryptocurrencies on behalf of third parties. said the people.
Trump is also expected to order an end to “Operation Choke Point 2.0,” the term cryptocurrency executives use to describe what they say has been a concerted effort by banking regulators to drive cryptocurrency companies out of the system. traditional financial system by ordering banks to deny them. services.
Banking regulators deny such an effort exists.
Reuters could not determine whether Trump would direct the changes through one or several executive orders, but sources said the goal was to quickly send a strong signal that the new administration broadly supports the adoption of digital assets.
If implemented by relevant regulators, Trump’s expected policy directives have the potential to propel cryptocurrencies into the mainstream, regulatory and crypto experts say.
This is in stark contrast to President Joe Biden’s regulators who, in a bid to protect Americans from fraud and money laundering, have cracked down on cryptocurrency companies, suing exchanges Coinbase (NASDAQ 🙂, Binance, Kraken and dozens more in federal court.
Crypto industry critics point to the downfall of top cryptocurrency executives Sam Bankman-Fried, who was sentenced to 25 years for fraud, and Binance founder Changpeng Zhao, who briefly went to prison for money laundering violations. of money, as evidence of the dangers of the industry.
A representative for Trump, who counts multiple cryptocurrency advocates among his financial backers and top picks for his Cabinet, did not immediately respond to a request for comment. The SEC did not immediately respond to a request for comment.
Cryptocurrency regulation is just one of several issues Trump is expected to address with executive orders in the early days of his second four-year term.
The incoming president’s team has promised dozens of executives orders on issues ranging from energy production to illegal immigration.
