Regulatory clarity tops crypto industry’s agenda for Trump’s second-term

The crypto world is watching closely, eager to see what executive actions the incoming Trump Administration will take to shape the future of digital assets.

At the top of their wish list is an executive order encouraging regulatory agencies to collaborate. This includes the Commodity Futures Trading Commission and the Securities and Exchange Commission, intending to create a comprehensive framework for digital asset policy.

While Congress will ultimately decide how to classify crypto assets, such an executive order could motivate these agencies to produce research that propels the issue forward. Major U.S. firms in the sector, such as Coinbase Global Inc. and Ripple Labs, have long pushed for clear regulatory guidelines explicitly tailored to digital assets.

Trump appoints pro-industry leaders to shape crypto and financial policies

President-elect Donald Trump is appointing pro-industry leaders to key regulatory positions, including former SEC Commissioner Paul Atkins as chair of the main securities industry regulator and Scott Bessent as Treasury Secretary. Additionally, he has introduced a new position: artificial intelligence and crypto Czar, to be filled by David Sachs, general partner of venture firm Craft Ventures and co-founder of PayPal Holdings Inc.

Ari Redbord, global head of policy and government at blockchain intelligence company TRM Labs, commented on the development:

Those people are ultimately going to make the policy. They understand that you need to thread the needle as a regulator between enabling lawful users’ privacy within an open financial system, but at the same time ensuring consumer protection.

Ari Redbord

Greater regulatory clarity aligns with the crypto industry’s push for broader access to banking services. Under the Biden Administration, regulators issued warnings about the risks associated with banking digital asset companies. The closures of crypto-friendly banks Signature and Silvergate in 2023 reignited concerns that banks were being discouraged from serving crypto businesses.

According to Rebeca Romero Rainey, president of the Independent Community Bankers of America, a level regulatory playing field between the banking and crypto sectors, along with clear rules for permissible crypto-related products and services, are crucial. She notes that they will create a more secure environment for consumers and the financial system.

Trump set to prioritize cryptocurrency with key changes and actions

The upcoming departure of FDIC Chair Martin Gruenberg, set for Jan. 19, the day before Trump’s inauguration, has sparked celebration among critics who argue his agency unfairly targeted the crypto industry. Federal Deposit Insurance Vice Chair Travis Hill, one of two Republicans on the FDIC’s board, is expected to succeed Gruenberg.

Another critical area of concern for the sector is the relaxation of Staff Accounting Bulletin No. 121 (SAB 121), which requires banks to account for customers’ crypto assets as their own. Because those assets are essentially reported on their balance sheets, banks must maintain more significant capital levels.

Trump is reportedly preparing to issue an executive order elevating cryptocurrency to a policy priority and giving industry representatives a role within his administration, Bloomberg reported Thursday, citing individuals familiar with the plans. The order is expected to identify crypto as a national priority — strategic language intended to encourage government agencies to collaborate with the industry. It is also anticipated that a crypto advisory council will be established to advocate for the industry’s policy goals, according to sources who requested anonymity due to the unpublished nature of the executive order.

Kristin Smith, CEO of the Blockchain Association, said that the crypto industry is optimistic about strong leadership from the incoming administration, making it clear that crypto is something to encourage and embrace in the United States, not drive away.

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