The post Day One Crypto Shake-Up: Trump Plans to Scrap Crypto Liability Rule appeared on BitcoinEthereumNews.com.

President-elect Donald Trump is expected to repeal the SEC’s SAB 121 on his first day in office, potentially enabling banks to hold cryptocurrencies as assets rather than liabilities, signaling a pro-crypto shift in U.S. policy. Executive Orders on Day One According to a Washington Post report, President-elect Donald Trump is expected to issue executive orders related to cryptocurrency policy immediately. A key initiative anticipated on his first day is the reversal of the Staff Accounting Bulletin (SAB) 121, a guideline issued by the U.S. Securities and Exchange Commission (SEC) that requires banks holding digital assets to classify them as liabilities.   The controversial accounting rule has drawn criticism from cryptocurrency advocates, who argue it hampers financial institutions’ ability to engage with digital assets. They contend that treating custodial crypto as liabilities inaccurately portrays a company’s financial position, deterring further institutional adoption.   Legislative Push for Change   A bipartisan bill aimed at repealing SAB 121 passed through Congress recently, but it was vetoed by President Biden. Members of Trump’s transition team are reportedly collaborating with leaders in the crypto sector to finalize a strategy for overturning the policy.   The proposed executive order is expected to encourage banks and financial institutions to hold Bitcoin (BTC) and other cryptocurrencies on behalf of clients. This move could significantly expand institutional participation in the digital asset market.   Building Alliances in Tech The Washington Post report highlights an emerging alliance between President-elect Trump and prominent tech leaders, including Elon Musk, Marc Andreessen, and David Sacks. This collaboration reportedly began during a meeting at Trump’s private golf club in Bedminster, New Jersey.   Trump has emphasized the importance of advancing American technology to outcompete China, break down regulatory barriers, and bolster growth sectors like cryptocurrency. Venture capitalists, who often felt sidelined during the Biden administration, now see an opportunity for…

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Filed under: News - @ January 15, 2025 9:22 pm