Yazılar

Circle CEO Anticipates U.S. Executive Orders to Broaden Crypto Adoption

/in /tarafından

Circle CEO Jeremy Allaire has expressed expectations that U.S. President Donald Trump will issue executive orders “imminently” aimed at reducing regulatory barriers for the cryptocurrency sector, which could enable banks to trade, offer investments, and hold crypto assets in portfolios.

Key Points:

  • Executive Orders Expected: Allaire anticipates executive orders under the new administration to address regulatory challenges facing cryptocurrencies, enabling banks to more actively engage with digital assets, including offering crypto investments to wealthy clients.
  • USDC and Crypto Regulations: As the issuer of the USDC stablecoin, Allaire advocates for the repeal of the SEC’s Staff Accounting Bulletin 121, which he claims has made it difficult for financial institutions to hold crypto assets on their balance sheets.
  • Trump’s “Crypto President” Agenda: Trump’s administration has promised to embrace digital assets, with the president aiming to streamline crypto regulation and support broader adoption, aligning with his vision of being a “crypto president.”
  • Broader Industry Impact: Industry leaders, including Faryar Shirzad from Coinbase, expect swift regulatory actions that could further integrate banks into the crypto space, bolstering institutional adoption and broader ecosystem growth.

US Bank Regulator Cautions Banks on Crypto but Stops Short of Halting Crypto Business

/in /tarafından

In a series of documents released on Friday, the Federal Deposit Insurance Corporation (FDIC) clarified that it advised banks to pause direct engagement in cryptocurrency activities in 2022 and 2023, but did not order banks to stop offering banking services to crypto companies. This comes amid complaints from the crypto industry, which claims widespread “debanking” by traditional banks. The release of these documents follows a lawsuit filed by Coinbase, which sought to reveal the FDIC’s supervisory actions towards banks interacting with the crypto sector.

The FDIC’s guidance, provided in “pause letters” sent to various banks, emphasized the risks of directly holding crypto assets, but did not mandate that banks sever ties with crypto clients or cut off banking services for crypto companies. In contrast, the regulator issued instructions to pause or slow down crypto ventures and requested detailed clarifications from banks exploring direct involvement with crypto.

Coinbase’s legal team, alongside other crypto advocates, has criticized the regulator’s stance as an attempt to stifle the sector. Meanwhile, the FDIC published a 2022 internal memo to further clarify the difference between traditional banking services for crypto firms—such as offering deposit accounts—and direct crypto activities, like holding or trading crypto assets. The memo suggests stricter scrutiny for direct crypto engagement.

The timing of the document release is significant, coinciding with President-elect Donald Trump’s upcoming inauguration. His administration is expected to announce a broader crypto policy overhaul, with reports indicating that he may issue an executive order encouraging regulators to ease their stance on the industry.

US Crypto Industry Presses for Day-One Executive Orders Under Trump

/in /tarafından

The cryptocurrency industry is urging President-elect Donald Trump to prioritize his campaign promise of overhauling crypto policies by issuing executive orders as early as his first day in office on January 20. These potential directives aim to push cryptocurrency further into the mainstream, according to insiders.

Trump has signaled plans for a wave of executive orders on diverse topics, including immigration and energy. The crypto sector hopes this momentum will extend to their agenda, advocating for measures such as creating a strategic bitcoin reserve, guaranteeing banking access for crypto companies, and establishing a crypto industry council. Insiders suggest one such order may even be unveiled on Inauguration Day, with additional orders expected within the administration’s first 100 days.

“Given the tenor of the campaign, it would be imperative for executive orders to outline clear priorities and provide a roadmap,” said Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs.

Trump’s proposed approach marks a sharp departure from President Joe Biden’s administration, which implemented stringent regulations on the sector, citing concerns over crime and volatility. Trump, branding himself as a “crypto president,” has promised to reverse this stance. His transition team already includes pro-crypto figures such as SEC chair Paul Atkins and White House crypto advisor David Sacks.

In July, Trump unveiled plans to establish a U.S. bitcoin reserve, driving Bitcoin prices above $107,000. Although the cryptocurrency has since dropped below $100,000, the industry remains divided over whether Trump could use executive powers or would need Congress to implement such a reserve. A draft executive order by the Bitcoin Policy Institute proposes spending $21 billion over a year to designate Bitcoin as a strategic reserve asset.

Other anticipated executive actions include directives to prevent banks from excluding crypto firms from the traditional financial system, a longstanding industry grievance. While federal regulators assert that banks are free to work with compliant crypto firms, some executives argue that regulatory pressure has stifled such partnerships. However, analysts caution that executive orders may have limited impact on federal banking regulators, who operate independently.

Additionally, Trump has floated the idea of forming a crypto industry council, which his team is currently exploring. Previous administrations have successfully created similar councils through executive orders.

The broader crypto community is also pushing for an executive order that sets foundational principles for crypto regulation, akin to Trump’s 2017 directive for banking rule reviews. Such an order could encourage regulatory agencies to revisit existing rules to better align with the rapidly evolving cryptocurrency landscape.

“An early executive order articulating core principles for crypto regulation wouldn’t be surprising,” said Jonah Krane, a partner at financial firm Klaros Group. “It would signal the administration’s direction while initiating long-term regulatory adjustments.”