WASHINGTON, Jan 17, 2025 — President-elect Donald Trump plans to issue a series of executive orders designed to ease regulatory burdens on cryptocurrency firms and promote the use of digital assets, according to those familiar with the plans.

These orders are expected to be signed during the initial days of his administration.

Formation of a Crypto Advisory Council
One expected measure is an executive order to create a cryptocurrency advisory council, a proposal Trump initially made in July 2024. This council, potentially comprising up to 20 members, would advise the government on fostering a supportive environment for the digital asset industry.

Bloomberg News first reported this on Thursday.

Revisions to SEC Guidelines and Banking Policies
Trump’s team is also considering instructing the Securities and Exchange Commission (SEC) to repeal the 2022 accounting rule known as SAB 121.

Industry critics have argued that this rule makes it excessively costly for certain companies, especially banks, to manage cryptocurrencies on behalf of third parties.

Another executive order is likely to address what crypto executives call 'Operation Choke Point 2.0,' an alleged move by banking regulators to dissuade financial institutions from offering services to crypto-related businesses.

Regulators have denied any such efforts exist.

Wider Impact on the Cryptocurrency Industry
These anticipated actions signal a notable shift from the Biden administration’s stricter approach to cryptocurrency regulation.

Under Biden, regulators increased scrutiny on the sector, launching legal actions against major exchanges like Coinbase, Binance, and Kraken to tackle issues around fraud, money laundering, and consumer protection.

The crypto industry has been embroiled in controversies, such as the conviction of Sam Bankman-Fried, founder of the defunct FTX exchange, for fraud and the imprisonment of Binance founder Changpeng Zhao for money laundering.

Critics point to these incidents as evidence of sector risks, while supporters call for regulatory clarity to aid legitimate businesses.

Political and Economic Context
Trump's pro-crypto stance aligns with his broader campaign promises to support innovation and entrepreneurship in new technologies.

His forthcoming administration has identified cryptocurrency regulation as one of several urgent priorities, alongside energy production and immigration reform.

Several crypto advocates are reportedly among Trump’s financial supporters and potential cabinet nominees.

Industry and Regulatory Responses
While neither the SEC nor Trump’s representatives have commented on the plans, experts suggest that if implemented well, these measures could hasten the mainstream adoption of cryptocurrencies.

However, it's uncertain whether these initiatives will be introduced through a single executive order or multiple ones.

Cryptocurrency continues to be a divisive topic in U.S. financial policy, with discussions focusing on balancing innovation with protecting investors and the broader financial system.

Trump's proposed strategy could influence the future of digital assets in the United States, potentially signaling a shift in global regulatory practices.