Trump’s Crypto Policies May Begin on Day One

Jimmy Aki
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Donald Trump’s anticipated return to the White House on January 20 may immediately impact the cryptocurrency industry. Reports suggest he plans to issue executive orders addressing crypto policies, including de-banking concerns and a contentious financial accounting rule.

Crypto Policies Expected on Trump’s First Day

According to The Washington Post on January 13, Trump’s team is prioritizing revisions to a 2022 SEC directive, SAB 121, which forces banks holding digital assets to list them as liabilities.

This policy has faced criticism for stifling crypto adoption and adding unnecessary burdens on financial institutions. A source close to the discussions revealed, “The Trump team has made it very clear that this is a priority.”

The executive orders are also expected to tackle crypto de-banking, an issue where the Biden administration has been accused of pressuring banks to sever ties with crypto companies.

Critics labeled this alleged effort “Operation ChokePoint 2.0,” claiming it isolated the industry from essential financial services.

The crypto community has been vocal in pushing for swift reforms. On December 23, Reuters reported that industry executives encouraged Trump to implement crypto policies within his first 100 days, with some calling for action on day one.

David Sack, Trump’s crypto and AI advisor, recently emphasized these priorities at a December 20 luncheon with tech executives and policymakers.

He discussed plans to rescind Biden’s controversial 2023 executive order on AI, citing its focus on equity as a point of contention among conservatives.

Sack’s involvement highlights the administration’s intent to recalibrate policies seen as hindering technological advancement.

What Trump’s Plans Mean for Crypto

Venture capitalist Marc Andreessen has played a behind-the-scenes role in shaping Trump’s administration. Reports suggest Andreessen has influenced key appointments and strategies, aligning the new administration’s goals with the crypto and tech industries.

Trump’s campaign promises have raised hopes among cryptocurrency advocates. By pledging to make the U.S. a global hub for digital assets and proposing a Bitcoin strategic reserve, he has signaled a commitment to fostering a favorable environment for crypto businesses.

However, skepticism lingers. During his previous administration, similar promises to support emerging industries often met with limited follow-through.

Analysts warn that while Trump’s crypto policies might provide a short-term boost, their long-term impact will depend on how they balance innovation with regulatory oversight.

Moreover, the New York Digital Investment Group (NYDIG) has cautioned that Trump’s crypto policies may face delays due to the time needed to appoint and confirm key officials.

Greg Cipolaro, NYDIG’s global head of research, explained that priorities like addressing geopolitical issues, the national budget, and immigration could slow progress on crypto reforms.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.