Donald Trump plans to sign a series of crypto executive orders on the first day of his presidency
Although larger crypto policies will take more time to finalize, these executive orders are still on the Trump administration's top priority list.
According to a source from The Washington Post, the new US President Donald Trump may sign a series of executive orders related to cryptocurrencies on the first day of his presidency to revive the US crypto industry after a long period of pressure from the Biden administration and the SEC. Notably, the SEC is asking the SEC to abolish the crypto custody regulation (SAB 121), establish a Crypto and AI advisory council, establish a Bitcoin reserve, and pardon Ross Ulbricht.
Repealing the controversial SAB 121 regulation
The crypto custody regulation (SAB 121) is one of the most controversial regulations in the finance and crypto industry under the Biden administration. Enacted by the US Securities and Exchange Commission (SEC), the policy requires banks to custody cryptocurrencies on behalf of their clients, as well as requiring other financial firms that hold users' crypto to record it as a liability on their balance sheets.
In 2024, the US House of Representatives vetoed SAB 121, which was later repealed by the Senate by a significant margin.
However, President Joe Biden used his veto power to reject the bill, leaving SAB 121 in place. This decision not only further angered the crypto community, but also reinforced the view that the Biden administration was maintaining a strict stance, imposing barriers on the crypto industry.
Against this backdrop, President-elect Donald Trump quickly put SAB 121 on the priority list for handling on his first day in office. According to sources, Trump plans to sign an executive order requiring the SEC to completely repeal this regulation, while providing clearer and more transparent guidance on how to handle crypto assets on the balance sheet.
The repeal of SAB 121 will thereby reduce the regulatory burden and encourage large financial institutions to participate more deeply in the crypto sector, thereby enhancing the development and innovation in the industry.
Establishment of Crypto and AI Advisory Council
One of the important highlights in Mr. Trump's plan after taking office is the establishment of the Crypto Advisory Council and the appointment of an official specializing in AI.
This is the first time in history that this position has appeared in the White House and is considered a strategic move to create a solid foundation for the management and development of the cryptocurrency industry in the US. The council is expected to include about 20 leading leaders in the industry, including founders and CEOs from major technology and financial companies. Among the key appointments, Bo Hines, a former Republican candidate for the 2022 US House of Representatives, has been appointed as Executive Director of the Presidential Advisory Council on Digital Assets, or “Crypto Council.” He will serve under the direction of David Sacks, the original COO of PayPal and now a White House adviser on crypto and AI policy handpicked by President Donald Trump.
According to sources familiar with the matter, the Council’s primary mission is to advise the President and regulators such as the SEC and CFTC on issues related to cryptocurrencies and blockchain, ensuring that crypto-related regulations are developed consistently, thereby creating a clearer and more effective legal framework for the industry.
In particular, under the direction of President Donald Trump, the CFTC is expected to be given increased authority to directly regulate cryptocurrencies classified as commodities. This move not only reduces the power of the SEC but also emphasizes the need for the Council to coordinate and promote cooperation between regulatory agencies.
Establishing a Bitcoin Reserve for the United States
The commitment to establishing a Bitcoin reserve fund has been affirmed by Donald Trump many times before and after his election, demonstrating his strong desire to approve this strategy.
According to experts, US President Donald Trump may sign an executive order on the first day of his inauguration, making Bitcoin (BTC) a national reserve asset of the United States. This order is expected to be based on the provisions of the Dollar Stabilization Act, which gives the President special authority to protect the USD, thereby establishing a Bitcoin reserve fund.
In addition, insider sources revealed that Mr. Trump has a special interest in the cryptocurrency market, believing that BTC can help the US eliminate its $38 trillion public debt. With an ambitious vision, he aims to bring Bitcoin's price to $150,000 in the early stages of his presidential term. In particular, the establishment of a Bitcoin reserve fund will create a strong driving force, promoting positive growth in Bitcoin's value in the market.
However, Mike Novogratz, CEO of veteran investment fund Galaxy Digital, once said that the possibility of Mr. Trump establishing a national Bitcoin reserve fund is "very low". He explained that this step could cause conflicts between branches of government, complicating the implementation process. Besides, he does not believe that the USD needs any other assets to maintain its position as the global reserve currency.
Pardon for Silk Road Founder Ross Ulbricht
In his speech at the Libertarian National Convention, President Donald Trump stated that one of his first executive orders, if re-elected, would be to release Ross Ulbricht, the founder of the black market Silk Road.
The decision to pardon Ross Ulbricht not only brings personal justice to him after 12 years of incarceration, but also carries symbolic significance, affirming that individuals who have been criticized or misunderstood in Bitcoin's history. In addition, the decision to pardon Ross Ulbricht could also spur lawmakers to introduce more sweeping reforms to cryptocurrency policy, making the US the "crypto capital of the world" as Trump once declared.
In 2022, Ross Ulbricht wrote a letter to President Joe Biden asking for a pardon. In the letter, he explained that he did not create Silk Road with bad intentions, but only to promote his libertarian ideals. Ross also pledged that, if released, he would not do anything illegal.
However, President Biden ignored the letter and upheld the sentence. Ross Ulbricht is currently serving a life sentence without parole for his role in Silk Road.
Now, Ross's chance at freedom lies in President Trump's hands. Ross's X account, which is currently managed by his wife, appears to be preparing for his release from prison.
"For my final month of 2024 goal, I plan to study every day and try to update everything to be ready for my release."
Future Executive Orders
According to Decrypt, Donald Trump is not only approving the above orders but is also planning a series of other executive orders including:
Requesting the US State Department to work with global partners to promote innovation and application of cryptocurrencies, creating a favorable legal environment for US businesses to operate in the international market.
Revoking SEC regulations imposed on DeFi projects, which have been criticized for hindering the development of this field.
Issuing policies to protect crypto companies' access to banking services, addressing allegations related to the "ban" campaign Operation Choke Point 2.0 and the Biden administration's plot to "kill" the crypto industry.
Trump is also considering a range of more sweeping reforms, sources said, such as asking the SEC to repeal rules targeting DEXs like Uniswap that have been accused of being unregistered securities brokers and directing federal agencies to coordinate more closely to promote the development of the cryptocurrency industry.
Donald Trump's first day in office is expected to be extremely busy with a series of important tasks, so executive orders related to cryptocurrencies may not be issued immediately. However, Trump may prioritize some urgent issues first, while larger and more complex changes to crypto will take more time to finalize and announce.
However, the crypto decrees remain at the top of the Trump administration's priority list, showing his strong commitment to promoting the development of the industry.
