Donald Trump’s return to the presidency is expected to bring immediate and sweeping changes to cryptocurrency regulations in the United States. Reports suggest that Trump plans to issue a series of executive orders on his first day in office, including measures to address the crypto industry’s challenges.
These steps are seen as a decisive shift from the restrictive policies of the previous administration. One of the most anticipated orders involves the creation of a presidential crypto council comprising approximately 20 industry leaders who will work collaboratively to tackle pressing issues in the crypto space.
Moreover, its policy on executive action will require the SEC to withdraw its regulation, Staff Accounting Bulletin 121 (SAB 121), which has prevented US banks from investing in cryptocurrency. This could open the door for the industry to see more institutions adopt the use of digital assets as the rules stand now.
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A Game-Changing Crypto Council: What Will It Mean?
The proposed presidential crypto council is set to become a pivotal force in shaping the future of cryptocurrency regulation. By including top industry executives and founders, the council aims to address long-standing challenges such as regulatory ambiguity and limited access to banking services.
This initiative could bring much-needed alignment between regulators and the crypto industry. The administration is also focusing on reducing confusion caused by overlapping regulatory frameworks.
A single workstream uniting the work of the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will focus on trying to provide more certainty for enterprises operating within the digital asset environment.
This action is deemed crucial since it can help popularise the cryptocurrency market within the United States. However, his efforts to force the SEC to drop its repulsive exchange rule could prove to be an angel for most of the DeFi projects that are struggling due to regulatory crackdowns.
Could Resistance Delay Trump’s Crypto Vision?
Despite the ambitious scope of these reforms, implementation challenges loom large. The sheer number of executive orders planned for Trump’s first 100 days could result in delays. Additionally, federal regulators operate with significant independence, which may lead to resistance against changes conflicting with existing policies and potentially slow down efforts to implement the proposed reforms.
Trump’s transition team has actively sought advice from crypto leaders to ensure the effectiveness of these policies. The administration hopes to create regulations that balance innovation and security by engaging with key stakeholders. However, addressing the intricacies of these reforms will require meticulous planning to ensure a lasting impact.
Conclusion
Trump’s presidency is poised to redefine the regulatory landscape for cryptocurrencies in the United States. From establishing a crypto council to rescinding restrictive regulations, the proposed reforms signal a bold approach to fostering innovation and boosting the industry’s global competitiveness.
While challenges persist, these developments could usher in new regulatory clarity and opportunity for the US crypto sector.
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