Trump to Release Pro-Crypto Executive Orders Early in Presidency

The new administration intends to lower regulatory obstacles and encourage the adoption of digital assets via executive measures.

WASHINGTON, Jan 17, 2025 — President-elect Donald Trump is preparing to release a series of executive orders designed to lessen regulatory restrictions on cryptocurrency firms and promote the use of digital assets, according to insiders familiar with the initiatives.

The orders are likely to be signed within the early days of his presidency.

Establishment of a Crypto Advisory Council
One of the expected actions is an executive order to form a cryptocurrency advisory council, a plan Trump first suggested in July 2024. The council, potentially composed of up to 20 members, would advise the government on creating a more supportive environment for the digital asset industry.

The development was initially reported by Bloomberg News on Thursday.

Revisions to SEC Guidelines and Banking Practices
The Trump administration is also contemplating advising the Securities and Exchange Commission (SEC) to revoke the 2022 accounting guidance known as SAB 121.

This guidance has been criticized by industry players for making it excessively costly for certain firms, especially banks, to hold cryptocurrencies in custody for third parties.

An additional executive order is expected to address what crypto executives label as 'Operation Choke Point 2.0,' a purported attempt by banking regulators to deter financial institutions from offering services to crypto-related businesses.

Regulators have refuted the existence of such a campaign.

Broader Impacts on the Cryptocurrency Sector
These anticipated measures signal a significant policy change from the Biden administration’s more stringent approach to cryptocurrency regulation.

Under Biden, regulators increased scrutiny of the sector, pursuing legal actions against major exchanges such as Coinbase, Binance, and Kraken to tackle issues concerning fraud, money laundering, and consumer protection.

The crypto industry has been involved in several high-profile scandals, including the conviction of Sam Bankman-Fried, founder of the now-defunct FTX exchange, for fraud, and the imprisonment of Binance founder Changpeng Zhao for money laundering offenses.

Critics claim that these incidents underscore inherent risks in the sector, while advocates call for regulatory clarity to support legitimate businesses.

Political and Economic Context
Trump's pro-crypto strategy aligns with his broader campaign promises, which included pledges to support innovation and entrepreneurship in emerging technologies.

His incoming administration has highlighted cryptocurrency regulation as one of several immediate priority areas, alongside energy production and immigration reform.

Several crypto supporters are reportedly among Trump’s financial backers and potential cabinet members.

Industry and Regulatory Reactions
While the SEC and Trump’s representatives have not yet commented on the plans, industry experts believe the proposed measures could hasten the mainstream adoption of cryptocurrencies if implemented effectively.

Nevertheless, it remains uncertain whether these actions will be introduced through a single executive order or multiple directives.

Cryptocurrency continues to be a contentious issue within U.S. financial policy, with discussions focusing on balancing innovation with protecting investors and the broader financial system.

Trump's suggested approach may influence the future of digital assets in the United States, indicating a potential shift in the global regulatory environment.