Regulation
Trump Government To Greenlight Crypto Trading For Banks: Reuters
Donald Trump’s inauguration as the 47th US President, marking the beginning of his second presidential term, has sparked excitement in the crypto space. While Trump has announced plans for 100+ executive orders, the community expects a crypto revamp. According to expert predictions, potential policy changes under the new administration may include revisions to banks’ crypto trading practices, ending the controversial Operation Chokepoint 2.0.
In a Reuters report, Circle CEO Jeremy Allaire stated that Trump would announce the much-awaited executive orders immediately after his inauguration. Allaire believes Trump’s new policies will make it easier for banks to offer crypto trading services, enabling clients to invest in and hold digital assets.
Trump’s Executive Orders Include Bank’s Crypto Trading
The Circle CEO remains optimistic about Donald Trump’s potential crypto policy changes, which he believes would include banks’ crypto trading services. In particular, he expects the rejection of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121). According to him, the SAB 21 effectively made it “punitive for banks and financial institutions and corporations even to hold crypto assets on their balance sheet.”
Among Trump’s numerous executive orders, Allaire is particularly eager to see the revocation of SAB 121. “I’m strongly in favour of repealing it and I would hope that President Trump would take that action,” stated Allaire. In addition, he called for Congress’ action in introducing a comprehensive crypto regulatory framework.
Is Trump’s Re-Election an End to Operation Chokepoint 2.0?
“Operation Chokepoint 2.0″ is a term used to describe the alleged government crackdown on the crypto industry. Since the fall of the financial giant Silvergate, the government has been reportedly isolating crypto companies from the broader financial space. Goverments’ move to cut banks’ ties with crypto companies sparked increasing caution, severely affecting crypto trading activities.
In addition, the SEC and FDIC’s increased scrutiny over crypto platforms urged banks to halt crypto-related activities. While many accused it as the government’s indirect regulation, XRP lawyer John Deaton urged the government to take effective steps to tackle Operation Chokepoint 2.0.
Donald Trump’s 100+ Executive Orders
Notably, Trump plans to issue more than 100 executive orders on his initial day, sparking speculation about potential crypto policies. Meanwhile, crypto investor and mathematician Fred Krueger predicted that Trump would announce the Bitcoin reserve on day one.
Experts and industry leaders also anticipate an overhaul of crypto regulations under the new SEC Chair Paul Atkins. With clarifications on digital assets’ security status, many believe that high-profile cases like the Ripple-SEC lawsuit would find a conclusion. Aligning with Allaire’s expectations, the industry hopes for crypto-friendly policies that would make crypto trading easier.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: