The Bit (BTC) price has recovered to $94,000 after news that former President Donald Trump is preparing to sign executive orders supporting cryptocurrencies on his first day in office.
These orders could reverse key regulatory measures, including SEC's SAB 121.
New Moves from Trump
According to The Washington Post report, these orders are expected to address major challenges facing the cryptocurrency industry, such as banking restrictions and the controversial SAB 121. The SEC's SAB 121 requires companies holding cryptocurrencies for clients to record those assets as liabilities on their balance sheets.
Zack Guzmán wrote:
The SEC has relaxed SAB 121 on a case-by-case basis for large banks, but not broadly enough. SEC Commissioner Hester Peirce told me that this was a failure because it was unfair to only allow a few to custody cryptocurrencies. Biden's veto was no longer appropriate. Exciting times!
SAB 121 has been the focus of criticism from the industry. Lawmakers had tried to repeal this guidance last year. However, President Joe Biden had vetoed the measure despite bipartisan support in Congress. The incoming Trump administration is expected to revisit this issue immediately.
Currently, the SAB 121 policy makes it costly and risky for banks to hold cryptocurrencies. As a result, they are less likely to provide cryptocurrency custody or other services to their clients.
Crypto Market Turns Green Again
Following this news, the cryptocurrency market has strongly recovered from the initial price drops earlier in the day. Bit (BTC) had dipped to $89,000, the lowest level in two months. Since the news, BTC has rebounded to $94,500 at the time of writing. Ethereum has followed a similar trend, recovering from below $3,000 to $3,100. AAVE, an Altcoin associated with World Liberty Financial (WLFI) which Trump supports, has gained 5% within an hour.
Furthermore, additional reports suggest that Trump's executive orders could allow cryptocurrency businesses better access to banking. His orders are likely to counter what industry leaders describe as "de-banking" practices.
FDIC Vice Chairman Travis Hill recently condemned the previous banking restrictions on cryptocurrency companies. He called for clearer guidance to support this industry. Meanwhile, Trump's team is said to propose restructuring the FDIC and consolidating banking regulators to improve efficiency.
Alongside these new moves, other crypto-friendly developments are expected on Inauguration Day. David Sacks will take on the role of the first Crypto Czar, and former crypto-friendly manager Paul Atkins will lead the SEC.
Meanwhile, major cryptocurrency firms like Ripple, MoonPay, and Kraken have made significant contributions to Trump's inauguration events. These contributions may help them gain early access to discussions with the administration on future cryptocurrency policies.
Overall, Trump's inauguration, expected next week, is anticipated to mark a turning point for U.S. cryptocurrency policy. The market, still reeling from previous volatility, has viewed this news as a sign of potential growth and stability under a more crypto-friendly presidency.
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