The president-elect of the United States, , plans to use his powers to reduce the regulatory burden faced by cryptocurrency companies by promoting adoption of the digital asset in his first days in office, said three people who were briefed on his plans.
Trump, who received support from businesspeople during the campaign and promised to be a “crypto president”, must issue decree creating a cryptocurrency advisory boardan idea that was already floated in July, said two sources who asked not to be identified.
A Bloomberg News reported on Thursday (16) that Trump plans to issue a decree creating the cryptocurrency council, which will help advise the government on practices favorable to this market. The body can have up to 20 members, according to one of the sources.
Trump aides also discussed the use of a decree to compel the SECthe regulatory body of the US capital markets, to rescind a 2022 rule known as “SAB 121”which would have left a very high cost for companies, especially banks, to hold cryptocurrencies on behalf of third parties, the sources said.
Trump should also declare the end of “Operation Choke Point 2.0”a term industry executives use to describe what they see as a concerted effort by banking regulators to stifle cryptocurrency companies and drive them out of the traditional banking system.
Banking system regulators claim that this agreement does not exist.
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A Reuters was unable to verify whether Trump would address the changes with one or more executive orders, but sources said the goal is to quickly send a strong signal that the new administration broadly supports the adoption of digital assets.
If implemented by relevant regulators, Trump’s directives have the potential to catapult cryptocurrencies into the financial mainstreamsay experts.
This is a big change from current president Joe Biden’s regulators. In an attempt to protect Americans from fraud and money laundering, they have fought cryptocurrency companies, suing Coinbase, Binance, Kraken and dozens of others in federal court.
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Critics of cryptocurrencies point to the fall of important executives in the sector, such as Sam Bankman-Fried, sentenced to 25 years in prison for fraud, and Binance founder Changpeng Zhao, who was briefly detained for money laundering, as evidence of their danger.
A representative for Trump, who counts cryptocurrency advocates among his financial backers and Cabinet appointees, did not immediately respond to a request for comment. The SEC also did not immediately respond.
