Circle CEO Jeremy Allaire predicts that President Donald Trump will sign a series of executive orders that will allow banks to hold crypto assets in their portfolios, trade them, and offer crypto services to wealthy clients.
Executive Orders and Crypto Regulations
In his meeting with Reuters, Allaire stated that Trump will take significant steps to support the crypto industry. He stated that they especially hope that the SAB 121 directive of the US Securities and Exchange Commission (SEC) will be removed.
SAB 121 is a guideline stating that some companies must show crypto assets as liabilities on their balance sheet. Allaire argues that removing this guideline would be positive for the crypto market. Since Coinbase and Circle are currently among the biggest Trump supporters, these predictions made by Jeremy should not be seen as mere predictions. This may be one of the agreed-upon industry improvements discussed with Trump or his advisors. As a matter of fact, Trump’s Bitcoin $104,876.5 Considering his promise to create reserves, giving this permission to banks is a very small thing compared to this.
Trump’s Crypto Policies
Trump, who was skeptical of Bitcoin and crypto during his previous presidency, pledged to protect and grow the crypto asset sector before the 2024 elections. He promised to end policies that prevent crypto investors from using digital assets and to stop selling US-seized Bitcoins on the open market.
“I want to keep a close eye on executive orders… I strongly support repealing SAB 121 and hope that President Trump will take this step.” –Jeremy Allaire
Circle contributed $1 million worth of its own stablecoin, USDC, to Trump’s inauguration committee this month.
These approaches by Trump towards crypto may herald a significant change in the crypto asset market. Greater involvement of banks in crypto trading could increase market liquidity and attract the interest of institutional investors.
Loosening regulations in the crypto market could contribute to the growth of the sector. However, these steps also need to be carefully evaluated in terms of market stability and investor protection.
Banks allowing crypto trading could encourage more widespread use of crypto assets. This development could increase institutional acceptance of the crypto sector and support financial innovations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
