President-elect Donald Trump is expected to sign a cryptocurrency executive order soon after taking office, according to sources familiar with the plans. This initial order is likely to lead to a series of additional directives affecting major regulatory bodies, including the CFTC and SEC, as well as international relations concerning cryptocurrency.
The inaugural executive order is projected to create a presidential crypto council comprising roughly 20 industry leaders, primarily founders and CEOs. Furthermore, the order may instruct the SEC to overturn a rule known as SAB 121, which currently deters U.S. banks from holding cryptocurrencies. Despite Congress having passed a repeal of this rule last spring, President Joe Biden vetoed it, allowing the regulation to remain in effect.
Reports indicate that Trump’s transition team has previously drafted a more comprehensive crypto executive order, suggesting that while the immediate order may address specific issues, there will be broader reforms rolled out in the following weeks. Proposed reforms could include establishing a working group between the CFTC and SEC to align on digital asset regulations and rescinding an SEC rule targeting decentralized finance projects. Another proposed measure would have the U.S. Secretary of State promote international cooperation on crypto innovation.
While these reforms aim to be beneficial for the cryptocurrency sector, insiders warn that the ambitious agenda might require significant time to implement properly, especially given the number of executive orders awaiting Trump’s attention. The timing and language of these orders are subject to change amidst the usual unpredictability of a new administration’s startup phase.
In preparation for Trump’s inauguration, Bo Hines, who will head the crypto council, has reached out to crypto policy leaders, urging them to submit proposals for potential executive orders by January 15, allowing scant time for their consideration before the inauguration on January 20.
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