President-elect Donald Trump is set to issue several executive orders on January 20, his first day in office. These orders could significantly affect the cryptocurrency sector. One of the key measures under consideration is reversing the rule known as SAB 121. This rule, introduced by the Securities and Exchange Commission (SEC) in March 2022, requires banks to treat cryptocurrency holdings as liabilities. 

Many in the crypto industry have criticized this policy, arguing it creates unnecessary challenges for banks that hold digital assets. Last year, Congress passed a bill to repeal SAB 121, but President Joe Biden vetoed it. Trump’s team aims to nullify this rule as part of his first-day executive orders.

Additionally, Trump is expected to address the issue of crypto de-banking. Critics have argued that the current administration’s policies, particularly “Operation ChokePoint 2.0,” discourage banks from offering services to cryptocurrency companies. 

Further Crypto Orders to Follow

Sources indicate that Trump plans to issue more crypto-related executive orders beyond his first day. These orders could include establishing a presidential crypto council made up of industry leaders and issuing instructions to the Commodity Futures Trading Commission (CFTC) and SEC to form a crypto working group. This group would focus on developing consistent regulatory approaches for digital assets.

Trump’s administration is also expected to push for the cancellation of additional rules affecting decentralized finance (DeFi) projects. Additionally, a proposed order could direct the U.S. Secretary of State to collaborate with international counterparts on encouraging global crypto innovation.

Despite the broad scope of these plans, sources suggest that it may take time for these reforms to be fully implemented. Trump’s transition team is actively working on refining these measures, but the details and timeline are still subject to change.

Industry Anticipates Positive Reforms

The crypto industry has long advocated for a more supportive regulatory environment. During his campaign, Trump promised to make the U.S. a “crypto capital” by reducing regulatory challenges and creating a Bitcoin strategic reserve. Many industry leaders are confident that the incoming administration’s policies will help shape a more favorable environment for cryptocurrencies and related businesses. However, it remains to be seen how quickly these reforms will take effect.