As the Trump Administration prepares for its next term, the cryptocurrency industry anticipates significant changes aimed at fostering growth and innovation in digital assets. Industry leaders expect executive actions that prioritize clear regulatory frameworks, cross-agency collaboration efforts, and policies that support broader acceptance of cryptocurrencies in the financial ecosystem.
Regulatory framework in focus
At the top of the crypto industry’s wish list is a unified regulatory framework. An early executive order may direct agencies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to work collaboratively on comprehensive digital asset policies. While the final classification of cryptoassets remains under the jurisdiction of Congress, such an order could prompt these agencies to conduct investigations and provide guidelines to move the issue forward.
Major players in the sector, such as Coinbase and Ripple, have long advocated for well-defined rules to improve operational clarity and innovation. “Clear regulatory guidelines are essential for the sustainable growth of digital assets in the US,” said a senior industry expert.
Pro-crypto leadership in key roles
President Trump’s appointments to regulatory leadership include people with a pro-innovation stance. Former SEC Commissioner Paul Atkins is expected to lead the securities industry regulator, while Scott Bessent will take on the role of Treasury secretary. Notably, a new position, “Crypto and AI Czar,” will be led by David Sachs, a renowned venture capitalist and co-founder of PayPal.
These appointments indicate a strong push to balance innovation with consumer protection. “It’s about threading the needle between protecting legal users and mitigating risks from bad actors,” said Ari Redbord, a blockchain policy expert.
Access to banking services
The crypto sector has faced significant obstacles to accessing banking services, particularly under the Biden Administration, which issued warnings about the risks linked to digital asset banking companies. The closures of cryptocurrency-friendly banks like Signature and Silvergate in 2023 intensified these concerns.
The Independent Community Bankers of America (ICBA) has advocated for a balanced regulatory environment to bridge the gap between the banking and crypto sectors. “Equal conditions will create a safer environment for both consumers and the financial system,” emphasized ICBA president Rebeca Romero Rainey.
The early departure of Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg is another development welcomed by cryptocurrency advocates. Vice President Travis Hill is expected to take a more innovative approach, balancing technology adoption with sound financial principles.
Adjustment of accounting standards for banks
Another priority for the crypto sector is to review accounting rules, specifically Staff Accounting Bulletin No. 121 (SAB 121). These rules require banks to treat customers’ crypto assets as part of their balance sheets, which requires greater capital reserves. Industry leaders expect adjustments to be made to reduce barriers for financial institutions interacting with digital assets.
Executive order to prioritize cryptocurrencies
Reports suggest that President Trump plans to issue an executive order declaring cryptocurrencies a national priority. This directive would encourage collaboration between government agencies and the crypto industry while creating an advisory council dedicated to advocating for policy priorities.
“We are optimistic that the incoming administration will recognize the importance of adopting cryptocurrencies in the US and take steps to avoid driving innovation overseas,” said Kristin Smith, CEO of the Blockchain Association.
The cryptocurrency industry awaits the new administration’s actions with high expectations, hoping for leadership that will foster innovation, regulatory clarity, and growth within the US economy.
Also read: Coinbase Offers Bitcoin-Backed Loans – How Does It Work and Should You Use It?