Circle CEO Jeremy Allaire has expressed optimism about the incoming Trump administration’s potential to enact crypto-friendly policies, including a possible repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121. In a recent interview, Allaire shared his expectation that President Donald Trump will sign executive orders to support digital assets and make it easier for banks to hold cryptocurrencies on their balance sheets.
SAB 121: A Controversial Roadblock for Crypto
SAB 121, introduced under the Biden administration, established a framework that essentially prevents financial institutions from holding cryptocurrency on their balance sheets by imposing punitive accounting rules. While Congress voted to overturn the bulletin, President Biden vetoed the resolution, citing consumer and investor protection concerns.
Allaire and other crypto executives argue that SAB 121 stifles innovation rather than protecting investors. “SAB 121 effectively made it punitive for banks, financial institutions, and corporations to hold crypto assets,” Allaire explained. He sees a repeal as a critical step for advancing crypto adoption and believes the Trump administration is poised to take action.
Executive Orders on the Horizon?
Speaking at the Reuters Global Markets Forum during the World Economic Forum in Davos, Allaire suggested that pro-crypto executive orders could be issued “imminently,” though he did not specify a timeline. Circle, the issuer of USD Coin (USDC), has been a strong advocate for regulatory changes to enable broader adoption of cryptocurrencies.
Interestingly, Circle donated $1 million in USDC to Trump’s inauguration committee, signaling its confidence in the administration’s potential to embrace digital assets.
Trump’s Inauguration Speech Silent on Crypto
Despite the excitement surrounding Trump’s rumored crypto policies, the president made no mention of digital assets during his January 20 inauguration address. Instead, his 40-minute speech focused on topics like immigration and his proposal for an “External Revenue Service,” aimed at collecting tariffs from foreign sources.
Crypto Markets React
The cryptocurrency market saw significant volatility during Trump’s inauguration day. Bitcoin surged to an all-time high of over $109,000 before correcting to $103,300, a 2% decline. Crypto exchange-traded products (ETPs) also experienced a surge, with $2.2 billion in inflows last week, including $1.9 billion directed into Bitcoin ETPs.
Year-to-date, Bitcoin funds have seen $2.7 billion in net inflows, according to CoinShares data, reflecting strong investor interest tied to expectations of favorable regulatory shifts under Trump’s administration.
