Trump Set to Make Waves in Crypto Regulation: A New Executive Order on the Horizon
As President-elect Donald Trump gears up for his second term, whispers from inside the administration hint at a significant crypto-related executive order poised for release within the initial hours of his inauguration. This anticipated move promises to reshape the landscape of cryptocurrency regulation and signal Trump’s renewed focus on digital assets.
Foundation of the New Crypto Council
The upcoming executive order is expected to announce the establishment of a presidential crypto council, comprising approximately 20 influential figures from the cryptocurrency industry, notably founders and CEOs. This council aims to enhance dialogue between the government and the rapidly evolving crypto sector, thereby paving the way for better-coordinated policy frameworks.
Clearing Regulatory Hurdles
In alignment with the formation of the crypto council, the executive order is likely to instruct the Securities and Exchange Commission (SEC) to abandon a controversial regulation known as SAB 121. This rule has posed challenges for American banks wanting to hold cryptocurrency assets. The move would follow Congress’s previous repeal attempt, which was vetoed by President Joe Biden, indicating a strong desire from the Trump administration to foster a friendlier environment for institutional participation in the crypto market.
A Broader Vision for Cryptocurrency Policy
Sources within Trump’s transition team suggest that the initial order may only scratch the surface of forthcoming regulatory reforms. Following the November elections, a more comprehensive draft was circulated, potentially unveiling a series of additional executive actions targeting the digital assets space. Rumors indicate intentions for subsequent orders that include the establishment of a crypto working group within both the Commodity Futures Trading Commission (CFTC) and SEC. This initiative aims to harmonize approaches to digital assets, addressing discrepancies that currently exist in regulatory frameworks.
Impact on Decentralized Finance
Another essential reform under consideration involves rescinding the SEC’s contentious rule targeting decentralized finance (DeFi) platforms. This decision would likely lead to a more lenient regulatory environment for innovative blockchain-based finance solutions, encouraging growth and adoption in this transformative sector.
International Cooperation in Cryptocurrency Innovation
The Trump administration may also explore broadening the United States’ approach to international collaboration in fostering cryptocurrency innovation. A proposed directive would direct the U.S. Secretary of State to coordinate efforts internationally, enhancing the U.S.’s role in shaping global standards and practices in the crypto arena.
The Balancing Act of Quick Action and Thoughtful Regulation
As excitement builds around these proposed initiatives, insiders note the critical need for careful consideration in crafting lasting regulations. While the rush of executive orders will likely commence on Trump’s first day in office, the extensive list of priorities under review may prolong the timeline for rolling out comprehensive crypto reforms.
Call for Industry Input
In preparation for these sweeping changes, Bo Hines—appointed to lead Trump’s new crypto council—has reached out to prominent voices within the crypto policy field. He has requested suggestions for additional executive order proposals, with a deadline set just days before the inauguration. This move indicates that, while a prioritized focus on crypto is evident, the administration is also keenly aware of the necessity to gather industry insights and incorporate them into policy-making.
Navigating the Transition Period
As Trump’s inauguration draws near, the timeline and specifics of these executive orders remain fluid and subject to modification. The dynamics surrounding Trump’s administration will undoubtedly influence the nature of any final decisions. The transition period’s uncertainties signal that while crypto remains a focal point of Trump’s second term, the rollout will be carefully orchestrated amidst the broader political landscape.
This developing situation underscores the evolving nature of U.S. policy toward cryptocurrencies, inviting stakeholders to remain vigilant as the regulatory framework shifts to meet the challenges and opportunities presented by this rapidly advancing technology.
