The incoming Trump administration appears poised to orchestrate a significant shift in U.S. cryptocurrency policy, signaling plans to dismantle key Biden-era regulations, according to The Washington Post (WaPo).
Report: Trump’s First-Day Executive Orders to Target Biden’s Crypto Policies
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Trump’s Alleged Crypto Plans Revealed by Insiders in WaPo Report
Insiders privy to the administration’s deliberations revealed to WaPo that overturning the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121 is a top priority. The controversial rule, which mandates that banks classify digital assets as liabilities, has drawn sharp criticism from crypto advocates, who argue it hampers broader adoption of digital currencies.
“Trump is expected to issue executive orders on the first day of his presidency that may address issues including de-banking and the repeal of a controversial crypto accounting policy requiring banks holding digital assets to count them as liabilities on the bank’s own balance sheet, according to a person involved with the conversations,” WaPo reporters Cat Zakrzewski and Jacqueline Alemany wrote.
SAB 121, passed by Congress last year but vetoed by President Biden, remains a contentious flashpoint in cryptocurrency regulation. Trump’s allies view its repeal as essential to fostering a policy environment more conducive to innovation in the digital currency sector. The rumored regulatory changes could enable traditional financial institutions (tradfi) to offer custodial services for digital assets like bitcoin—an effort proponents argue will bolster both legitimacy and stability in the crypto market.
David Sacks, a close advisor and Trump’s newly appointed AI and crypto czar, outlined the administration’s emerging strategy during a December event. Sacks reportedly described plans for what he called a “sensible” regulatory framework, one designed to encourage technological innovation while reducing federal intervention. WaPo sources suggest this framework may include executive orders aimed at combating “de-banking,” a practice under the Biden administration that reportedly made it difficult for crypto businesses to access financial services.
The Trump team has also been building alliances with leading figures in the tech and cryptocurrency spheres, ranging from venture capitalists to blockchain entrepreneurs. These relationships mark a stark contrast with Trump’s first term, during which he openly criticized cryptocurrencies. Adding to this pivot, the administration has announced plans for an inaugural Crypto Ball, an event intended to position the U.S. as a global leader in blockchain development and digital asset innovation.
The push for deregulation follows mounting criticism of the Biden administration’s crypto policies, which imposed stricter scrutiny and additional reporting requirements on cryptocurrency firms. According to WaPo, advocates for Trump’s new approach argue that these measures stifled innovation and forced businesses to relocate overseas.
As Trump’s presidency approaches, his administration’s crypto agenda is being framed as a potentially transformative moment for the industry. While it remains unclear whether these policies will achieve their intended goals, early indications suggest a dramatic realignment in the direction of U.S. cryptocurrency regulation.
