Circle CEO Expects President Trump to Issue Executive Orders Allowing Banks to Trade and Hold Crypto

Circle CEO Expects President Trump to Issue Executive Orders Allowing Banks to Trade and Hold Crypto

Circle CEO Wants Executive Orders for Broader Access to Crypto

Jeremy Allaire, the CEO of Circle, has expressed optimism about potential executive orders from President Donald Trump that would allow banks to trade and hold cryptocurrency. Speaking at the World Economic Forum (WEF) in Davos, Switzerland, Allaire emphasized the importance of reducing regulatory barriers to accelerate the adoption of digital assets in the U.S.

USDC’s Role and Trump’s Pro-Crypto Stance

Circle’s stablecoin, USDC, is currently the 8th largest cryptocurrency and the 2nd largest stablecoin globally by market capitalization. President Trump’s anticipated executive orders aim to lower regulatory hurdles, encouraging broader use of digital assets and bolstering the U.S. crypto market. This aligns with Trump’s pro-crypto stance, which has been a topic of discussion at the WEF.

SEC Policies and the Call for Reform

Allaire specifically highlighted the need to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121. This bulletin imposes stringent requirements on banks and financial institutions, making it punitive for them to hold cryptocurrency on their balance sheets. Allaire stated:

"That’s something I think to watch closely in terms of executive orders. I’m strongly in favor of repealing it, and I would hope that President Trump would take that action."

Repealing this policy would enable banks to manage crypto assets more efficiently, paving the way for increased institutional adoption.

Impact on Institutional Adoption

If President Trump issues the anticipated executive orders, it could significantly enhance bank participation in the crypto market. By enabling banks to trade and hold cryptocurrencies, these orders would foster greater institutional adoption, expand crypto market access for wealthy clients, and integrate digital assets into traditional financial portfolios. This development could also contribute to the growth and stability of the broader crypto industry.

Conclusion

The evolving regulatory landscape for cryptocurrencies in the U.S. is poised for transformation. With Circle’s CEO advocating for executive orders and policy changes, the potential actions by President Trump could mark a pivotal moment for institutional crypto adoption, driving innovation and economic growth.