President-elect Donald Trump is reportedly planning to use his executive authority to support cryptocurrency companies and promote broader digital asset adoption during the early days of his administration, according to Reuters. This initiative marks a sharp departure from the regulatory approach under President Joe Biden’s administration, which took stringent measures to address fraud and money laundering in the crypto sector.

Executive Orders to Signal Crypto Support

Trump is expected to issue an executive order establishing a cryptocurrency advisory council, a proposal he initially suggested in July, as reported by Reuters. Two sources familiar with the discussions noted that this council could include up to 20 members tasked with advising the government on creating crypto-friendly policies. Bloomberg News was the first to report the plan to establish such a council.

Additionally, Trump’s team has reportedly discussed reversing specific regulatory measures that have posed challenges for crypto companies. According to Reuters, one potential target is the 2022 Securities and Exchange Commission (SEC) accounting guidance known as “SAB 121,” which has been criticized for increasing costs for companies, particularly banks, attempting to hold cryptocurrencies for third parties. This action could alleviate financial burdens and facilitate greater participation in the crypto market.

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Controversial “Operation Choke Point 2.0” in Focus

Another area of focus for the incoming administration is addressing concerns raised by cryptocurrency executives about “Operation Choke Point 2.0.” This term, used by industry insiders, describes what they perceive as a coordinated effort by bank regulators to restrict crypto companies’ access to traditional financial services. While bank regulators have denied the existence of such an initiative, sources cited by Reuters suggest that Trump plans to issue an executive order to halt these practices.

Broader Implications for the Crypto Sector

If implemented, these policy changes could significantly impact the cryptocurrency industry by fostering a more supportive regulatory environment. Experts in both the regulatory and crypto spaces told Reuters that such actions might accelerate the mainstream adoption of digital assets, signaling a new era for the sector under the Trump administration.

This approach stands in stark contrast to the policies of the Biden administration, which pursued legal action against major cryptocurrency exchanges, including Coinbase, Binance, and Kraken, in efforts to combat illicit activities and safeguard consumers.

Source: Reuters