Jeremy Allaire, CEO of Circle, has voiced strong expectations that U.S. President Donald Trump will soon issue executive orders that could significantly reshape the landscape for cryptocurrency in the financial sector, Reuters reported.
Trump’s Vision for Crypto and Financial Services
He believes these executive orders will allow banks to trade cryptocurrencies, offer crypto investments to wealthy clients, and hold digital assets in their portfolios. Circle, the issuer of the USDC stablecoin, is one of the leading players in the space.
According to CoinGecko, USDC is the second-largest stablecoin in the world by market value and the eighth-largest cryptocurrency overall.
The Wait for Trump
Trump, who has pledged to be a “crypto president,” is expected to take swift action once he assumes office, promoting the adoption of digital assets and reducing regulatory barriers that currently hinder the integration of cryptocurrencies into the financial mainstream.
This aligns with his vision of creating a more crypto-friendly environment in the U.S. financial system, especially concerning traditional banks.
Reuters also stated that the anticipated executive orders could give banks more freedom to deal with digital assets, which would pave the way for larger institutional involvement in the crypto space.
Allaire noted that the executive orders might also address regulatory hurdles that currently impede financial institutions from holding crypto on their balance sheets.
One major roadblock Allaire hopes to see eliminated is the SEC Staff Accounting Bulletin 121, which he argues has made it punitive for banks and other financial entities to even hold crypto assets.
Circle’s Position and Crypto Adoption
Allaire has made it clear that Circle supports such measures and believes that the changes would benefit both the industry and consumers. “That’s something I think to watch closely in terms of EOs,” Allaire stated.
He emphasized his support for repealing the SEC ruling and pointed out that Circle already works closely with banks, who are eager to enter the crypto market but face regulatory challenges.
The prospect of these executive orders aligns with broader industry expectations of increased government activity concerning cryptocurrency regulations. Allaire’s comments reflect optimism that this regulatory overhaul could spur significant progress for the digital asset ecosystem.
Momentum in Congress and SEC
Alongside the executive orders, Allaire also expects that Congress will become more active in shaping digital asset regulations in the coming weeks.
The momentum from both the executive branch and Congress could bring much-needed clarity to an industry that has long struggled with regulatory uncertainty.
Faryar Shirzad, Chief Policy Officer at Coinbase, echoed similar expectations, predicting swift action from the newly appointed SEC under President Trump’s administration.
He believes the changes could encourage more banks to enter the custodial space for digital assets. “We expect the new SEC will take action,” Shirzad said. “This will almost certainly bring banks much more into the custodial space.”
Also Read: Circle And Binance Join Hands To Push Global Adaptation Of Stablecoin USDC
Banking and Crypto: A Growing Partnership
Although a U.S. bank regulator advised banks to pause direct involvement in crypto during 2022 and 2023, it did not instruct banks to stop offering services to crypto companies.
This has caused some tension within the industry, which has faced what it calls “debanking” efforts, with banks halting or restricting their dealings with crypto firms.
However, the recent shift in sentiment from key policymakers, including Trump and members of Congress, suggests that the regulatory environment is on the verge of becoming more supportive of crypto adoption.
As President Trump prepares to assume office, the crypto industry eagerly anticipates regulatory changes that could open doors for wider adoption of digital assets.
With executive orders expected soon, industry leaders like Allaire are hopeful that these moves will drive crypto into the mainstream financial sector, ultimately benefiting both consumers and businesses alike.
Also Read: Stablecoin Issuer Circle Cuts 6% Of Workforce As Stablecoin Market Expands