Trump Administration to Make Early Moves Beneficial for Cryptocurrency Market
The cryptocurrency market could see a positive development in terms of regulations early on, as reports suggest that President-elect Donald Trump is planning to revoke the SAB 121 accounting rule on his first day in office. This decision is believed to be a key part of Trump’s agenda to address banking issues related to the crypto sector.
According to sources, Trump is prioritizing the de-banking agenda and is expected to issue executive orders on his first day to repeal the accounting rule that previously restricted traditional banks from involvement in the crypto industry.
The SAB 121 guideline, which mandated strict 1:1 accounting for banks engaged in crypto activities, had limited the participation of most banks in the sector.
Despite a significant majority in Congress voting against the proposal, President Joe Biden vetoed it, citing concerns about consumer and investor protection.
Potential Establishment of a Bitcoin Strategic Reserve
The transition team led by Trump and David Sacks has emphasized their commitment to supporting the cryptocurrency sector, with Brian Hughes, a spokesperson for the team, expressing a desire for a thriving crypto industry in the United States.
“President Trump and David Sacks aim to protect online free speech, combat big tech censorship, and establish a legal framework conducive to the growth of the crypto industry in the United States,”
In addition to the repeal of anti-crypto regulations, the team has indicated plans to create a Strategic Bitcoin Reserve (SBR).
Notable figures within the industry, such as Jack Mallers from Strike, have hinted at the inclusion of the SBR initiative in the President’s initial executive orders. While the Washington Post did not provide direct confirmation of the SBR, market expectations have risen in anticipation.
Over the past two weeks, the odds of a U.S. SBR being established within the first 100 days of the Trump administration, as per Polymarket, have increased from 26% to 36%.
Interestingly, the surge in expectations coincided with Bitcoin’s price movement, where the cryptocurrency experienced a rise from $91k to $102k before retracing some of its gains.
Some analysts speculate that the introduction of a U.S. SBR could spark fear of missing out (FOMO) among other nations and potentially drive the value of Bitcoin higher. The crypto community eagerly awaits further developments to gauge the extent of Bitcoin’s integration into mainstream financial systems.