Impact of Trump’s Policies on the Cryptocurrency Market
As the new administration takes office, there are expectations of changes in cryptocurrency regulations. President-elect Donald Trump is reportedly planning to revoke the SAB 121 accounting rule, a move that could have significant implications for the crypto-market.
According to sources, Trump views the de-banking agenda as a key priority and intends to address it through executive orders on his first day in office. The SAB 121 guideline, which mandated strict accounting practices for banks engaging with cryptocurrencies, had previously restricted many traditional financial institutions from entering the sector.
While there was strong congressional support to abolish the rule, President Joe Biden vetoed the proposal, citing concerns about consumer and investor protection.
Potential Establishment of a Bitcoin Strategic Reserve
The transition team led by Trump and David Sacks has expressed a commitment to creating an environment that fosters growth in the crypto industry within the United States. Brian Hughes, a spokesperson for the team, outlined their plans to safeguard online free speech, address concerns of censorship by big tech companies, and develop a regulatory framework conducive to the crypto sector.
“President Trump and David Sacks are dedicated to ensuring that the crypto industry thrives in the United States by overturning restrictive regulations and empowering innovation.”
In addition to rolling back anti-crypto laws, there are hints that the administration could establish a strategic reserve for Bitcoin (SBR). Industry experts, including Jack Mallers from Strike, have suggested that the creation of an SBR could be included in Trump’s initial executive orders. Despite no explicit mention of SBR in official reports, market speculation has intensified.
Recent developments have caused Polymarket’s odds of a U.S. SBR being formed in the first 100 days of the Trump administration to rise significantly, from 26% to 36%. This sudden surge in predictions coincided with Bitcoin’s price movement, which experienced a brief rally from $91,000 to $102,000 before retracing.
Some analysts believe that the establishment of a U.S. SBR could have ripple effects globally, potentially driving up the value of Bitcoin as other countries follow suit. The coming months will reveal whether this move marks a new phase in the adoption and mainstream acceptance of Bitcoin.