Trump Government To Greenlight Crypto Trading For Banks: Reuters

Highlights

Circle CEO Jeremy Allaire believes Trump will allow banks to offer crypto trading services.
Governments forced banks to cut ties with crypto platform, leading Operation Chokepoint 2.0.
Trump's executive order may include the rejection of the SAB 121 and the adoption of BTC reserve.

Donald Trump’s inauguration as the 47th US President, marking the beginning of his second presidential term, has sparked excitement in the crypto space. While Trump has announced plans for 100+ executive orders, the community expects a crypto revamp. According to expert predictions, potential policy changes under the new administration may include revisions to banks’ crypto trading practices, ending the controversial Operation Chokepoint 2.0.

In a Reuters report, Circle CEO Jeremy Allaire stated that Trump would announce the much-awaited executive orders immediately after his inauguration. Allaire believes Trump’s new policies will make it easier for banks to offer crypto trading services, enabling clients to invest in and hold digital assets.

Trump’s Executive Orders Include Bank’s Crypto Trading

The Circle CEO remains optimistic about Donald Trump’s potential crypto policy changes, which he believes would include banks’ crypto trading services. In particular, he expects the rejection of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121). According to him, the SAB 21 effectively made it “punitive for banks and financial institutions and corporations even to hold crypto assets on their balance sheet.”

Among Trump’s numerous executive orders, Allaire is particularly eager to see the revocation of SAB 121. “I’m strongly in favour of repealing it and I would hope that President Trump would take that action,” stated Allaire. In addition, he called for Congress’ action in introducing a comprehensive crypto regulatory framework.

Is Trump’s Re-Election an End to Operation Chokepoint 2.0?

“Operation Chokepoint 2.0″ is a term used to describe the alleged government crackdown on the crypto industry. Since the fall of the financial giant Silvergate, the government has been reportedly isolating crypto companies from the broader financial space. Goverments’ move to cut banks’ ties with crypto companies sparked increasing caution, severely affecting crypto trading activities.

In addition, the SEC and FDIC’s increased scrutiny over crypto platforms urged banks to halt crypto-related activities. While many accused it as the government’s indirect regulation, XRP lawyer John Deaton urged the government to take effective steps to tackle Operation Chokepoint 2.0.

Donald Trump’s 100+ Executive Orders

Notably, Trump plans to issue more than 100 executive orders on his initial day, sparking speculation about potential crypto policies. Meanwhile, crypto investor and mathematician Fred Krueger predicted that Trump would announce the Bitcoin reserve on day one.

Experts and industry leaders also anticipate an overhaul of crypto regulations under the new SEC Chair Paul Atkins. With clarifications on digital assets’ security status, many believe that high-profile cases like the Ripple-SEC lawsuit would find a conclusion. Aligning with Allaire’s expectations, the industry hopes for crypto-friendly policies that would make crypto trading easier.

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Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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