Bitcoin Recovers as Trump Prepares Pro-Crypto Executive Orders
Bitcoin has rebounded to $94,000 following reports that Donald Trump is preparing to sign a pro-crypto executive order on his first day in office.
The orders could overturn key regulatory measures, including the SEC’s Staff Accounting Bulletin 121 (SAB 121).
Trump reportedly ready to overhaul cryptocurrency regulations from day one
According to the Washington Post Reportthe orders are expected to address key challenges facing the crypto industry, such as banking restrictions and Controversial SAB 121.
The SEC announcement requires companies that hold cryptocurrencies for their clients to record these assets as liabilities on their balance sheets.
“The SEC eliminated SAB 121 on a case-by-case basis for big banks, but it wasn’t broad enough. SEC Commissioner Hester Peirce told me it was a failure because it unfairly approved crypto custody for a small number of people. Biden on The bill’s veto is over. Exciting times!” wrote Zach Guzman.
SAB 121 has been the focus of industry criticism. Lawmakers tried to repeal the guidance last year.
However, the president Joe Biden vetoed the measure despite bipartisan support in Congress. Trump’s incoming administration is expected to revisit the matter immediately.
Currently, SAB 121 policy makes it more costly and risky for banks to hold cryptocurrencies. Therefore, they are unlikely to offer cryptocurrency custody or other services to their customers.
“Congress passed a repeal bill last year, but Biden vetoed it. This is the third of Saylor’s three catalysts for $5M in BTC: ✅ Spot ETFs ✅ Fair value accounting ✅ Banks can custody Bitcoin (SAB 121 Repeal ),” wrote Cryptocurrency entrepreneur Julian Driver.
Bitcoin and Cryptocurrency Markets Turn Green Again
Following the news, cryptocurrency markets showed a strong recovery after initial losses earlier in the day. Bitcoin has fallen to $89,000the lowest in two months. Since the news broke, BTC has recovered to $94,500 at the time of the report.
Furthermore, Ethereum followed a similar trajectory, recovering from the sub-$3,000 drop to $3,100. ghostan altcoin Related to World Free Finance for Trump (WLFI)soaring 5% in one hour.
Additionally, more reports suggest that Trump’s executive order may provide better banking services for cryptocurrency businesses. His order could counter what industry leaders call “de-banking” practices.
Vice Chairman of the Federal Deposit Insurance Corporation Travis Hill recently decried past bank restrictions About Cryptocurrency Companies. He called for clearer guidance to support the industry.
Meanwhile, the Trump team is reportedly proposing Restructure the FDIC and consolidate bank regulators to improve efficiency.
In addition to these developments, there are other crypto-supporting developments to look forward to on Inauguration Day. David Sacks will serve as The first ever cryptocurrency czarand crypto-friendly former regulators Paul Atkins will lead SEC.
Meanwhile, major cryptocurrency companies such as Ripple, MoonPay and Kraken have Made a huge contribution to Trump’s inauguration. These donations would allow them to discuss future cryptocurrency policy with the government at an early stage.
Overall, Trump’s inauguration scheduled for next week is expected to mark a turning point U.S. Cryptocurrency Policy. The market is still depressed compared to earlier volatilitysaw the news as a sign of potential growth and stability under a more crypto-friendly president.
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