President-elect Donald Trump is preparing to sign an executive order that will benefit the cryptocurrency industry, according to the Washington Post. This executive order could reverse unsuccessful Biden-era regulations and prioritize technological innovation.
Trump could mark a milestone in his second term by signing an executive order seeking to unleash the potential of the cryptocurrency industry on his first day in office, according to an exclusive report from the Washington Post.
The outlet reported that this measure, which has been described as a priority by Trump's transition team, could reverse some of the most controversial regulations implemented during Joe Biden's administration and pave the way for a more favorable environment for technological innovation in cryptocurrencies and digital assets in the United States.
The executive order, which is expected to be signed on January 20, 2025, the day of Trump's White House inauguration ceremony, would address two of the main challenges facing the cryptocurrency industry: “De-banking” and the controversial accounting standard known as SAB 121Both policies have been criticized by industry leaders and lawmakers for hindering the growth and adoption of cryptocurrencies in the country.
The problem of the “debanking” of the crypto industry in the United States
One of the main focuses of the executive order, according to reported The Washington Post will address the phenomenon of The “debanking” of the crypto world, which has prevented companies and investors in the sector from accessing banking services without any justification. During the Biden administration, several financial institutions began restricting or cancelling services to cryptocurrency companies, citing regulatory and compliance concerns.
On the other hand, the executive order that Trump could sign on his first day as president could include the repeal of the SAB 121, a guideline issued by the Securities and Exchange Commission (SEC) in 2022 that requires companies to record their customers' digital assets as liabilities on their balance sheets. As reported by this media, this standard has been widely criticized for increasing the operating costs of cryptocurrency companies and discouraging the custody of digital assets by traditional financial institutions.
David Sacks, Trump's newly appointed "cryptocurrency czar," will work closely with industry leaders to develop a legislative strategy to reverse the policy and encourage innovation in new technologies in the country. Speaking to the Washington Post, Sacks described SAB 121 as a unnecessary obstacle for innovation and promised that the new administration would take concrete steps to delete it.
"The Trump team has made it very clear that this is a priority", said a source close to the talks. "They want to send a strong message that the United States is open for business and ready to lead the technological revolution.".
Leading innovation beyond China
Trump’s decision to prioritize cryptocurrencies as a key enabler of accelerating innovation has not come in a vacuum. Over the past few months, the president-elect has received backing from some of Silicon Valley’s most influential figures, including investor Marc Andreessen and Tesla CEO Elon Musk.
Andreessen, co-founder of venture capital firm Andreessen Horowitz, has been a vocal advocate of pro-crypto policies and has played a key role in selecting staff for the new administration. According to the Washington Post, Andreessen has been actively recruiting candidates for key positions in areas such as technology, defense and intelligence, with the goal of ensuring that the “Little Tech” agenda is prioritized in Washington.
Meanwhile, Elon Musk, who has been described as Trump’s “first friend” during the transition, has also expressed support for pro-crypto policies. Musk, whose company SpaceX has collaborated with NASA on space missions, has been named as one of the directors of Trump’s new DOGE department of government efficiency and as one of his top tech advisors.
The outlet also noted that during a recent intimate dinner, Trump told Andreessen that his goal is to get American tech companies win the global race against China, which will remove the Biden administration's crackdown on cryptocurrencies and other emerging innovations that jeopardized multi-billion dollar investments in the sector.
A radical change in US regulatory policy
Trump’s executive order, expected to be unveiled on his first day in office, could mark a radical shift in U.S. regulatory policy toward cryptocurrencies. Under Joe Biden’s administration, the industry faced increased regulatory oversight, including antitrust investigations, lawsuits and new rules for artificial intelligence and cryptocurrencies.
In contrast, the new administration has promised to take a more innovation-friendly approach, reducing the regulatory burden and fostering competition in the tech sector.
Brian Hughes, spokesman for Trump's transition team, the priority will be to "safeguard free speech online, move away from Big Tech censorship, and develop a legal framework so that the cryptocurrency industry can thrive in the United States." Therefore, if this executive order is finally signed, the implications for cryptocurrencies and their future in the country would be significant. By removing regulatory barriers and fostering a more innovation-friendly environment, The new administration could attract greater investment and talent to the country, consolidating its position as a global leader in financial technology.
But not everyone is convinced that this strategy is the right one. Some critics, such as former Trump adviser Stephen K. Bannon, have warned of the risks of what they call “technofeudalism,” a system in which power and wealth are concentrated in the hands of a few technology companies.
Despite these concerns, the message from the Trump administration is clear: the United States is ready to embrace the future of cryptocurrencies and lead the next wave of technological innovation.
