President-elect Donald Trump plans to use executive orders early in his administration to support cryptocurrency businesses and encourage digital asset adoption. This marks a shift from the previous administration’s strict regulations aimed at combating fraud and money laundering. Trump intends to establish a cryptocurrency advisory council to create pro-crypto policies and may reverse certain regulations that burden companies, such as the SEC’s 2022 guidance impacting banks holding cryptocurrencies. He also aims to address concerns about perceived restrictions on crypto firms’ access to traditional banking services. If these initiatives succeed, they could lead to a more favorable environment for cryptocurrency growth and wider acceptance in the Market.
President-elect Donald Trump is gearing up to support cryptocurrency companies early in his administration. Reports indicate that he plans to use executive powers to promote digital assets, a move that contrasts sharply with President Joe Biden’s stricter regulations aimed at fighting fraud and money laundering in the crypto space.
New Executive Orders for Crypto Growth
In his first days in office, Trump is expected to announce an executive order to create a cryptocurrency advisory council. This council could consist of up to 20 members who will help shape policies to create a more crypto-friendly environment. The initiative was first mentioned by Trump in July and is gaining traction according to multiple sources, including a report by Bloomberg News.
Trump’s team is also looking to roll back certain regulations that have posed challenges for cryptocurrency businesses. One primary target is the SEC accounting guidance known as “SAB 121,” which has been criticized for increasing compliance costs, especially for banks holding cryptocurrencies.
Related: FTC Raises Antitrust Concerns Over Big Tech’s AI Partnerships
Tackling “Operation Choke Point 2.0”
Another priority for Trump’s administration will be addressing concerns about “Operation Choke Point 2.0.” Industry insiders claim this initiative limits crypto companies’ access to traditional banking services. Although regulators deny this claim, Trump’s team is expected to issue an executive order to put an end to such practices.
Impact on the Cryptocurrency Industry
If these plans go through, they could greatly influence the cryptocurrency Market by creating a more favorable regulatory landscape. Experts suggest that these actions could lead to faster mainstream acceptance of digital assets, signaling a transformative period for the crypto industry under Trump’s leadership.
This approach starkly contrasts the Biden administration’s actions, which have involved legal measures against major crypto exchanges such as Coinbase, Binance, and Kraken to combat illicit activities and protect consumers.
Source: Reuters
What do Trump’s executive actions mean for cryptocurrency regulation?
Trump’s executive actions could lead to stricter rules and oversight for cryptocurrencies. This means we might see more guidelines to protect investors and prevent fraud.
Will there be more government involvement in cryptocurrencies?
Yes, with these executive actions, we can expect more involvement from the government. They may introduce new regulations to ensure a safer environment for users and investors in the crypto Market.
How will this affect people who use cryptocurrencies?
Users might experience changes in how they buy, sell, or trade cryptocurrencies. New rules could add steps for security but also help improve trust in digital currencies.
Are these changes likely to impact cryptocurrency prices?
Yes, regulatory changes can affect prices. If investors feel more secure due to better regulations, prices might go up. However, uncertainty or restrictions can also cause prices to drop.
What can investors do to prepare for these changes?
Investors should stay informed about new regulations and adjust their strategies as needed. Following news updates and consulting financial experts can help them navigate this evolving space.
