Circle CEO Jeremy Allaire has expressed optimism about the incoming Trump administration\u2019s potential to enact crypto-friendly policies, including a possible repeal of the Securities and Exchange Commission\u2019s (SEC) Staff Accounting Bulletin (SAB) 121. In a recent interview, Allaire shared his expectation that President Donald Trump will sign executive orders to support digital assets and make it easier for banks to hold cryptocurrencies on their balance sheets.<\/p>\n\n\n\n
SAB 121, introduced under the Biden administration, established a framework that essentially prevents financial institutions from holding cryptocurrency on their balance sheets by imposing punitive accounting rules. While Congress voted to overturn the bulletin, President Biden vetoed the resolution, citing consumer and investor protection concerns.<\/p>\n\n\n\n
Allaire and other crypto executives argue that SAB 121 stifles innovation rather than protecting investors. \u201cSAB 121 effectively made it punitive for banks, financial institutions, and corporations to hold crypto assets,\u201d Allaire explained. He sees a repeal as a critical step for advancing crypto adoption and believes the Trump administration is poised to take action.<\/p>\n\n\n\n
Speaking at the Reuters Global Markets Forum during the World Economic Forum in Davos, Allaire suggested that pro-crypto executive orders could be issued \u201cimminently,\u201d though he did not specify a timeline. Circle, the issuer of USD Coin (USDC), has been a strong advocate for regulatory changes to enable broader adoption of cryptocurrencies.<\/p>\n\n\n\n
Interestingly, Circle donated $1 million in USDC to Trump\u2019s inauguration committee, signaling its confidence in the administration\u2019s potential to embrace digital assets.<\/p>\n\n\n\n
Despite the excitement surrounding Trump\u2019s rumored crypto policies, the president made no mention of digital assets during his January 20 inauguration address. Instead, his 40-minute speech focused on topics like immigration and his proposal for an \u201cExternal Revenue Service,\u201d aimed at collecting tariffs from foreign sources.<\/p>\n\n\n\n
The cryptocurrency market saw significant volatility during Trump\u2019s inauguration day. Bitcoin surged to an all-time high of over $109,000 before correcting to $103,300, a 2% decline. Crypto exchange-traded products (ETPs) also experienced a surge, with $2.2 billion in inflows last week, including $1.9 billion directed into Bitcoin ETPs.<\/p>\n\n\n\n
Year-to-date, Bitcoin funds have seen $2.7 billion in net inflows, according to CoinShares data, reflecting strong investor interest tied to expectations of favorable regulatory shifts under Trump\u2019s administration.<\/p>\n","protected":false},"excerpt":{"rendered":"
Circle CEO Jeremy Allaire has expressed optimism about the incoming Trump administration\u2019s potential to enact crypto-friendly policies, including a possible repeal of the Securities and Exchange Commission\u2019s (SEC) Staff Accounting Bulletin (SAB) 121. In a recent interview, Allaire shared his expectation that President Donald Trump will sign executive orders to support digital assets and make […]<\/p>\n","protected":false},"author":13,"featured_media":1436,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[259,43],"tags":[],"class_list":{"0":"post-13283","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-altcoins","8":"category-general-news"},"acf":[],"yoast_head":"\n