Trump’s executive order turns the US crypto policy

Trump Administration quickly moves to reshape the federal policy of digital property. 23. January, President Trump issued an executive order (Executable) that reverses the key elements of the federal bibdene era policy that emphasized strict supervision, executive actions and warnings on consumer protection. On the same day, SEC eliminated the accounting rules that were effectively prevented by banks to offer custody services CRIPTO – marking a dramatic and coordinated transition in government approach.

Executive order reverses the Federal Digital Assets Policy

Executive order explicitly dismisses both President Biden Executive order 14067 and Treasury Framework for International Engagement on Digital Property – Two curses before the previous American crypto policy. When a Bidden Directive would be a priority to the Central Bank Digital Currency (CBDC), the Trump’s executive orders prohibits federal agencies to deal with CBDC, characterized by “Stability of Financial System, Individual Privacy and United States.

The executive order also describes a new regulatory direction that focuses on the development of the private digital property sector. According to the order, regulators must establish clear boundaries of competencies, protect access to blockchain networks and support stableCoin development. This approach is especially different from the previous directional regulation on the limitations and risks of digital assets.

Companies for digital property are currently facing a patchworm of conflicting interpretations of several federal regulators, every competence. The goal of solving this regulatory fragmentation and uncertainty, the executive command establishes the Presidential Working Group, which was chaired by a special advisor to AI and CRIPTO and including key regulators such as the Secretary General, the CFTC President, the President of the CFTC. The Executive Order provides aggressive deadlines for this working group. The working group faces solid deadlines for executive orders: within 30 days, agencies must identify all regulations, instructions and orders affecting the digital agent and within 60 days, and each agency must submit recommendations for the abolition or Modifying these rules. Within 180 days, the working group must provide two significant items: recommendations for a comprehensive federal regulatory framework regulating digital assets and steless and, especially, assessing the creation of a national digital stock of assets. Consideration of a potential warehouse for a digital digital means is a significant transition to government thinking – from watching digital assets primarily as respondents of the executive for their role as a possible strategic property class.

SEC Reverses Sab 121, Clearing road for Bank Services Cripto

Adding changes to cleaning, SEC has been issued Bulletin Staff accounting 122 (SAB 122), reversing controversial Bulletin Staff Calculation 121 (SAB 121). SAB 121 The necessary institutions store customer’s assets to recognize protective responsibility and appropriate funds at their balance sheets, efficiently require banks to maintain capital to capitalize in relation to capital than the full value of detainable digital funds. These heavy capital requirements have made the CRIPTO Custody Services forbidden for most banks, deterring them to enter the market.

SAB 121 faced significant opposition industry and a formal congress challenge through the act of the congressional examination. Although this legislative effort did not eventually succeed in the Presidents of Biden in July 2024, SAB 122 is now adopting alternative approach: institutions may assess potential custody losses for detention custody on the principles of contingent responsibility. This means that banks only need banks that banks needed only to need banks that banks needed only to need banks that banks need only banks needed to need banks Only that banks need only that banks need only that only reserves are required for losses – the same approach used for traditional guardianship services.

The new treatment reinforces return on capital for digital assets of banks, which enabled feasible for financial institutions to offer crypto in detention in addition to their traditional securities services. For customers, this can provide access to institutional guards from their existing bank relations, not to rely on specialized cryptic firms that can lack identified risk management, insurance coverage and regulatory banks maintaining traditional banks. The change also allows American banks to better compete with international financial institutions already established surgeries of digital assets detention.

These simultaneous actions of the White House and SEC mark the decisive break from the previous benefits of the digital property of the Federal Government. Where early policy cast digital assets primarily as vehicles for illegal finances that require aggressive regulation and implementation, a new framework of digital assets as a legitimate part of the American financial system of the American financial system. This focus on digital assets during the first week Trump administration suggests that the improvement of the digital property industry in the United States is a high priority.