As the United States approaches President-elect Donald Trump’s inauguration on January 20, cryptocurrency markets are bracing for significant regulatory changes.
| Key Takeaways: – President-elect Donald Trump is set to overhaul cryptocurrency regulations. – A key change includes reversing the SAB 121 rule, which currently discourages U.S. banks from holding crypto. |
The president-elect has pledged to overhaul current crypto regulations, a move that has sparked growing institutional interest in digital assets.
Under Trump’s administration, the regulatory environment is expected to shift in favour of cryptocurrencies, with changes aimed at encouraging greater involvement from financial institutions.
A key change is the reversal of a regulatory guideline that currently impacts how financial institutions manage and account for digital assets. According to the Washington Post, President-elect Donald Trump has indicated that this will be a priority during his early days in office.
Crypto advocates argue that existing guidelines, including the controversial SAB 121 rule, hinder financial institutions from entering the digital asset space. Major firms, including BlackRock, have already begun entering the crypto derivatives market, driving liquidity and attracting more investors.
Trump’s first executive order on cryptocurrency is expected to establish a presidential crypto council composed of around 20 industry leaders, including prominent CEOs and founders.
Additionally, the order may instruct the Securities and Exchange Commission (SEC) to abandon the SAB 121 rule, which has discouraged U.S. banks from holding cryptocurrency. Although Congress passed a repeal of the rule last spring, President Biden vetoed the legislation, leaving the regulation intact.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
