The incoming Trump administration appears ready to pursue a sharp change in U.S. cryptocurrency policy, according to a report by The Washington Post citing people familiar with internal discussions. Among the most closely watched priorities is a potential effort to reverse SEC Staff Accounting Bulletin 121 (SAB 121), a rule that has become a major point of conflict between regulators, banks, and the digital asset industry.
SAB 121 at the Center of the Debate
SAB 121 requires banks that safeguard digital assets for customers to reflect those holdings as liabilities on their own balance sheets. Crypto advocates have long argued that the policy makes custody services more burdensome for traditional financial institutions, effectively discouraging banks from participating in the digital asset market.
According to the report, people involved in the transition discussions said Trump is expected to issue executive orders on the first day of his presidency that could address both the repeal of the accounting policy and broader concerns around so-called debanking. That term has been used by some industry participants to describe difficulty faced by crypto companies in obtaining or maintaining access to banking services under the Biden administration.
A More Industry-Friendly Regulatory Direction
Supporters of the proposed shift view the repeal of SAB 121 as a foundational step toward creating a more innovation-friendly environment for digital assets in the United States. In their view, removing the rule could make it easier for banks to offer custody services for assets such as bitcoin and other cryptocurrencies, potentially expanding institutional participation and giving the market greater legitimacy.
The report also points to comments from David Sacks, a close Trump adviser and the newly appointed AI and crypto czar, who described the outlines of a “sensible” regulatory framework during a December event. As presented, that framework would aim to support technological innovation while reducing the degree of federal intervention that many in the industry say has constrained growth.
Sources cited by the newspaper suggested that executive action may also be used to address claims that crypto businesses were unfairly cut off from financial services. For many market participants, this issue has become as politically charged as the debate over securities law and accounting treatment.
A Broader Political and Strategic Pivot
The emerging agenda reflects a notable change in Trump’s relationship with the crypto sector. During his first term, he was openly critical of cryptocurrencies. Now, however, his team is reportedly building closer ties with venture capital investors, blockchain founders, and other influential figures in the technology and digital asset ecosystem.
The administration has also announced plans for a “Crypto Ball”, an inaugural event intended to signal support for blockchain development and digital asset innovation in the United States. Symbolically, that move reinforces the message that the new administration wants to present the country as a more competitive home for crypto-related business activity.
What This Could Mean for the U.S. Crypto Market
The push for deregulation follows years of criticism from industry groups and market advocates who argued that the Biden administration’s tougher scrutiny, reporting expectations, and regulatory posture discouraged innovation and pushed some firms to expand overseas. Supporters of Trump’s apparent approach believe a lighter-touch framework could help reverse that trend and encourage investment, product development, and institutional involvement inside the U.S.
At the same time, many details remain unresolved. It is still unclear how quickly executive orders could translate into practical regulatory change, how federal agencies would respond, and whether any rollback of existing policy would face political or legal obstacles. Even so, the early signals described in the report suggest that U.S. crypto regulation could be heading toward a major realignment.
If these plans move forward, the first days of the new administration may mark one of the most consequential policy turning points for the American digital asset industry in recent years. Whether that shift ultimately produces broader adoption, stronger market infrastructure, or new forms of regulatory uncertainty will depend on the substance of the measures—not just the rhetoric surrounding them.