President-elect Donald Trump is planning to use his executive powers to reduce the regulatory burden faced by cryptocurrency companies and promote digital asset adoption in his first few days in office, according to sources familiar with the plan.
Trump, who campaigned with promises to be a “crypto president,” is expected to sign an executive order creating a crypto advisory council, an idea he first floated in July 2024. This council could have as many as 20 members and would help advise the government on crypto-friendly policy.
Bloomberg News reported on January 16 that Trump’s advisers have discussed using an executive order to direct the Securities and Exchange Commission (SEC) to rescind 2022 accounting guidance known as SAB 121, which has made it costly for some companies, particularly banks, to hold cryptocurrencies on behalf of third parties. Trump is also expected to order the end of “Operation Choke Point 2.0,” a term used by crypto executives to describe efforts by bank regulators to deny services to crypto companies.
If implemented, Trump’s policy directives have the potential to push cryptocurrencies into the mainstream, according to regulatory and crypto experts. This approach contrasts with President Joe Biden’s administration, which has cracked down on crypto companies to protect Americans from fraud and money laundering.
Critics of the cryptocurrency industry point to the downfall of leading crypto executives, such as Sam Bankman-Fried and Binance founder Changpeng Zhao, as evidence of the industry’s dangers.
A representative for Trump and the SEC did not immediately respond to requests for comment.
Cryptocurrency regulation is just one of several topics Trump is expected to address with executive orders in the opening days of his second term. His team has promised numerous executive orders on topics ranging from energy production to illegal immigration.