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 of the plan.
Trump, who courted cryptocurrencies on the campaign trail by promising to be a “cryptocurrency president,” is expected to sign an executive order creating a cryptocurrency advisory council, an idea he floated for the first time in July, said two of the sources who requested anonymity. discuss private deliberations.
Bloomberg News first reported Thursday that Trump plans to issue an executive order creating a crypto council, which would help advise the government on crypto-friendly policy. It could have up to 20 members, according to one of the sources.
Trump advisers also discussed using an executive order to direct the Securities and Exchange Commission to rescind 2022 accounting guidelines known as “SAB 121” that have made it too costly for some companies, in especially banks, holding cryptocurrencies on behalf of third parties, people said.
Trump is also expected to order an end to “Operation Choke Point 2.0,” the term crypto executives use to describe what they say is a concerted effort by banking regulators to exclude crypto companies from the traditional financial system by ordering banks to refuse them. services.
Banking regulators deny the existence of such an effort.
Reuters could not determine whether Trump would direct the changes via one or more 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 stands in stark contrast to President Joe Biden’s regulators who, in an effort to protect Americans from fraud and money laundering, have cracked down on crypto companies, suing exchanges Coinbase (NASDAQ:), Binance, Kraken and dozens more in federal court.
Critics of the cryptocurrency industry point to the downfall of top crypto executives Sam Bankman-Fried, who was sentenced to 25 years in prison for fraud, and Binance founder Changpeng Zhao, who was briefly jailed for money laundering violations of money, as proof of the dangers of the industry.
A representative for Trump, who counts several crypto advocates among his backers and top cabinet picks, 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 topics Trump is expected to address through executive orders in the first days of his second four-year term.
The new president’s team has promised dozens of executive orders on topics ranging from energy production to illegal immigration.
