Why Isn't Donald Trump Announcing Expected Cryptocurrency Decisions? CEO from the Sector Made a Reassuring Statement

Circle CEO Jeremy Allaire expressed confidence in regulatory and executive actions that could significantly impact the cryptocurrency sector in the near future. Speaking at a recent event, Allaire predicted the controversial Staff Accounting Bulletin No. 121 (SAB 121) would be repealed and anticipated administrative orders related to crypto.

Under the Biden administration, the issuance of SAB 121, introducing strict accounting rules for cryptocurrencies, has created challenges for public companies and financial institutions. Allaire noted that the bulletin is seen by the industry, especially banks and companies wanting to hold or store crypto assets, as 'punitive'.

Allaire said, “Banks need transparency and companies need transparency to be able to hold crypto assets in their balance sheets and to store without punitive measures”. He noted that the repeal of SAB 121 would alleviate these challenges, make the financial system more crypto-friendly, and unlock broader institutional participation in digital assets.

Allaire also expects new executive orders regarding cryptocurrencies from Trump, signaling that the regulatory environment may soon change. Although cryptocurrencies were not explicitly mentioned in the President's inaugural speech, Allaire expressed optimism about the administration's prioritization of cryptocurrency on the agenda.

We will begin to see regulators, Congress, and the White House take action.

The potential repeal of SAB 121 and the implementation of administrative orders may pave the way for greater institutional adoption of cryptocurrencies. Allaire noted that these actions would be in line with efforts to make capital markets more friendly towards digital assets and improve regulatory clarity.

At the World Economic Forum in Davos, Allaire discussed the increasing momentum for crypto-friendly policies, especially among Republican leadership and key industry players. He believes that addressing these regulatory issues will open up new opportunities for the financial sector and guide the next wave of crypto adoption.