President-elect Donald Trump’s administration is preparing to redefine the cryptocurrency landscape in the United States by leveraging executive powers to foster digital asset adoption and reduce regulatory hurdles. As Trump transitions to office, his proactive approach to cryptocurrency signals a sharp departure from the stringent regulatory stance of the Biden administration.
A Bold Step for Cryptocurrency
Central to Trump’s plan is the formation of a crypto advisory council, which is expected to advise the government on policies that align with the interests of the digital asset industry. First proposed in July, the council could feature up to 20 members, according to sources. This body is poised to serve as a bridge between the government and the rapidly evolving cryptocurrency sector, ensuring balanced policies that encourage innovation while addressing potential risks.
The president-elect’s team is also reportedly planning to undo restrictive measures like the 2022 Securities and Exchange Commission (SEC) accounting guidance (SAB 121). This regulation has been criticized for increasing operational costs for financial institutions, particularly banks, that wish to hold cryptocurrencies for third parties. By targeting SAB 121, Trump aims to reduce barriers that have discouraged traditional financial players from engaging with digital assets.
Another critical focus is ending what crypto executives call “Operation Choke Point 2.0”—allegations of systemic efforts by banking regulators to marginalize cryptocurrency companies. While regulators deny the existence of such policies, Trump’s administration is expected to issue clear directives to prevent banks from discriminating against crypto firms, thereby granting them greater access to traditional financial services.
Shifting the Narrative
This approach marks a stark contrast to President Joe Biden’s regulatory stance. Biden’s administration, citing concerns over fraud and money laundering, initiated crackdowns on major crypto exchanges like Coinbase, Binance, and Kraken. These actions, while intended to protect investors, have drawn criticism for stifling innovation and driving parts of the industry offshore.
Trump’s supporters argue that promoting cryptocurrency adoption could propel the United States to the forefront of the global digital economy. Regulatory experts and crypto enthusiasts believe that the anticipated directives could mainstream cryptocurrencies, boosting investor confidence and encouraging broader institutional participation.
However, critics remain skeptical. The industry has been marred by scandals, including the high-profile convictions of Sam Bankman-Fried and Changpeng Zhao for fraud and money laundering, respectively. Opponents warn that loosening regulations without adequate safeguards could pave the way for similar abuses.
A Broader Agenda
Cryptocurrency is just one item on Trump’s agenda for his second term. His team has promised sweeping changes via executive orders, addressing topics such as energy production and immigration. By focusing on crypto-friendly policies, the administration aims to send a strong signal of support to an industry that has faced mounting regulatory pressures.
As the world watches Trump’s next steps, his administration’s crypto initiatives could reshape the regulatory landscape, striking a balance between innovation and oversight. Whether these measures will fulfill their promise or invite new challenges remains to be seen.
(Source:www.fortune.com)
A Bold Step for Cryptocurrency
Central to Trump’s plan is the formation of a crypto advisory council, which is expected to advise the government on policies that align with the interests of the digital asset industry. First proposed in July, the council could feature up to 20 members, according to sources. This body is poised to serve as a bridge between the government and the rapidly evolving cryptocurrency sector, ensuring balanced policies that encourage innovation while addressing potential risks.
The president-elect’s team is also reportedly planning to undo restrictive measures like the 2022 Securities and Exchange Commission (SEC) accounting guidance (SAB 121). This regulation has been criticized for increasing operational costs for financial institutions, particularly banks, that wish to hold cryptocurrencies for third parties. By targeting SAB 121, Trump aims to reduce barriers that have discouraged traditional financial players from engaging with digital assets.
Another critical focus is ending what crypto executives call “Operation Choke Point 2.0”—allegations of systemic efforts by banking regulators to marginalize cryptocurrency companies. While regulators deny the existence of such policies, Trump’s administration is expected to issue clear directives to prevent banks from discriminating against crypto firms, thereby granting them greater access to traditional financial services.
Shifting the Narrative
This approach marks a stark contrast to President Joe Biden’s regulatory stance. Biden’s administration, citing concerns over fraud and money laundering, initiated crackdowns on major crypto exchanges like Coinbase, Binance, and Kraken. These actions, while intended to protect investors, have drawn criticism for stifling innovation and driving parts of the industry offshore.
Trump’s supporters argue that promoting cryptocurrency adoption could propel the United States to the forefront of the global digital economy. Regulatory experts and crypto enthusiasts believe that the anticipated directives could mainstream cryptocurrencies, boosting investor confidence and encouraging broader institutional participation.
However, critics remain skeptical. The industry has been marred by scandals, including the high-profile convictions of Sam Bankman-Fried and Changpeng Zhao for fraud and money laundering, respectively. Opponents warn that loosening regulations without adequate safeguards could pave the way for similar abuses.
A Broader Agenda
Cryptocurrency is just one item on Trump’s agenda for his second term. His team has promised sweeping changes via executive orders, addressing topics such as energy production and immigration. By focusing on crypto-friendly policies, the administration aims to send a strong signal of support to an industry that has faced mounting regulatory pressures.
As the world watches Trump’s next steps, his administration’s crypto initiatives could reshape the regulatory landscape, striking a balance between innovation and oversight. Whether these measures will fulfill their promise or invite new challenges remains to be seen.
(Source:www.fortune.com)