Trump plans executive action on crypto de-banking, targeting Biden-era bank rules and prioritizing the repeal of SAB 121 to support the cryptocurrency industry.
The bitcoin business may be significantly impacted by executive actions that take place as U.S. President-elect Donald Trump gets ready to return to the White House on January 20.
The Washington Post reported on January 13 that Trump anticipated taking executive action to address cryptocurrency de-banking and update a contentious bank accounting regulation as a top priority.
A rule implemented under the Biden administration that required banks that held cryptocurrency to declare digital assets as liabilities is being repealed as part of the expected directives.
The Securities and Exchange Commission’s March 2022 Staff Accounting Bulletin, SAB 121, which has encountered opposition from the cryptocurrency sector, is the source of this policy.
The Trump Team Will Overturn SAB 121
According to people familiar with the talks, the Trump administration has underlined how urgent it is to reverse these actions, and they are a top priority.
The cryptocurrency industry has long condemned the Biden administration for what it sees as a planned campaign, known as “Operation ChokePoint 2.0,” that aims to cut off the sector’s access to financial services.
Leaders in the industry have pushed Trump to act quickly during his first 100 days in office, including drafting executive orders about cryptocurrency.
According to some insiders, at least one such order might be signed on the day of his inauguration.
Trump’s administration is anticipated to review more tech-related rules in addition to those about cryptocurrency.
Biden’s 2023 AI executive order was recently hinted at being revoked by David Sack, Trump’s appointed advisor on crypto and AI.
Conservatives had opposed this decision for emphasizing the use of AI technologies to advance equity.
Marc Andreessen, a venture capitalist, has played a significant role in forming Trump’s prospective government.
Andreessen, well-known for his tech and cryptocurrency ventures, has aggressively sought applicants for essential technological, intelligence, and military jobs.
Trump promised to lower regulatory barriers and establish a strategic reserve for Bitcoin as part of his campaign to support the U.S. cryptocurrency industry.
North Dakota and New Hampshire are the most recent U.S. states to propose Bitcoin reserves.
Legislation to create strategic Bitcoin reserves has been introduced in North Dakota and New Hampshire, continuing the growing trend of U.S. states using Bitcoin to diversify their treasuries.
After House Republican leader Derek Merrin introduced a new bill, Ohio suggested adding Bitcoin to its government reserves.
Similarly, the Texas Strategic Bitcoin Reserve Act, presented by Texas Representative Giovanni Capriglione on December 12, 2024, calls for the state comptroller to keep Bitcoin as a reserve asset for at least five years.
In November, Pennsylvania adopted a similar measure when Representative Mike Cabell introduced a bill letting the Treasury hold up to 10% of its balance sheet in Bitcoin, noting the asset’s ability to act as a hedge against economic volatility.
Corporate Bitcoin owners like Metaplanet and MicroStrategy have also increased their Bitcoin holdings.
