President-elect Donald Trump is expected to kick off his second term with a high-profile executive order addressing cryptocurrency policy, sources have revealed to Decrypt.
The move signals the beginning of what could be a wave of crypto-related initiatives during his administration.
The anticipated order will reportedly establish a Presidential Crypto Council comprising approximately 20 industry leaders, primarily founders and CEOs. It is also expected to instruct the Securities and Exchange Commission (SEC) to rescind a rule known as SAB 121, which discourages American banks from holding cryptocurrency.
While Congress passed a repeal of SAB 121 last year, President Joe Biden vetoed the legislation, leaving the rule in effect.
This first-day directive may be just the beginning. According to sources, Trump’s transition team circulated drafts of a broader crypto executive order following his election victory in November. While the initial order is likely to address specific issues, more comprehensive reforms could follow in the weeks ahead.
Proposals under consideration include creating a joint crypto working group between the SEC and the Commodity Futures Trading Commission (CFTC) to align regulatory approaches. Another draft order could direct the SEC to reverse its contentious exchange rule targeting decentralized finance (DeFi) projects, while another aims to instruct the Secretary of State to promote international cooperation on cryptocurrency innovation.
Insiders believe Trump’s administration is committed to delivering sweeping reforms to benefit the cryptocurrency industry. However, they acknowledge that the complexity of these issues requires thorough deliberation, which may delay some measures. “It’s important to get this right,” one source noted, emphasizing the need for thoughtful policymaking.
Despite these ambitions, the details and timing of the proposed orders remain fluid. The early days of any presidency are often hectic, and executive orders can change or be delayed depending on emerging priorities.
Bo Hines, the former college football player appointed to lead Trump’s crypto council, has reportedly reached out to Washington’s crypto policy leaders, inviting proposals for potential executive orders. The deadline for submissions is January 15, just five days before Trump’s inauguration.
While it appears unlikely that a single comprehensive order will be ready by January 20, the president-elect’s team seems poised to make cryptocurrency policy a central focus of the new administration. Whether Trump’s early initiatives can set the tone for a more crypto-friendly regulatory environment remains to be seen.
