The incoming Trump administration is poised to launch a sweeping overhaul of U.S. cryptocurrency policy on its very first day in office, according to a report from The Washington Post. Citing insiders familiar with the transition team’s deliberations, the report reveals plans to issue executive orders targeting key Biden-era regulations, most notably the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121.
SAB 121: A Contentious Rule Under Fire
SAB 121 requires banks holding digital assets to classify them as liabilities on their balance sheets—a treatment the crypto industry has long argued stifles mainstream adoption. Although a Congressional resolution to overturn the rule passed last year, it was vetoed by President Biden, leaving it in place. Trump’s allies view its repeal as essential to allowing traditional financial institutions to offer custodial services for assets like bitcoin. “Trump is expected to issue executive orders on the first day of his presidency that may address issues including de-banking and the repeal of a controversial crypto accounting policy,” a person involved with the conversations told The Washington Post’s Cat Zakrzewski and Jacqueline Alemany. The repeal would likely remove a major barrier for banks entering the digital asset space, potentially boosting both legitimacy and market stability.
David Sacks: The New ‘Crypto Czar’
David Sacks, the venture capitalist appointed as Trump’s “AI and Crypto Czar,” outlined the administration’s emerging strategy during a December event. Sacks described plans for a “sensible” regulatory framework designed to encourage technological innovation while reducing federal intervention. According to the Post, the executive orders will also target “de-banking”—a practice under the Biden administration that reportedly made it difficult for crypto businesses to access financial services. The Trump team has been actively forging alliances with leading figures in tech and blockchain, from venture capitalists to entrepreneurs. This marks a stark pivot from Trump’s first term, during which he openly criticized cryptocurrencies. To symbolize the new direction, the administration has announced plans for an inaugural “Crypto Ball” aimed at positioning the United States as a global leader in blockchain development.
Industry Implications and Outlook
The push for deregulation follows mounting criticism that Biden’s policies imposed excessive scrutiny and compliance costs, forcing crypto firms to relocate overseas. Proponents of Trump’s approach argue that a friendlier regulatory environment will bring innovation back to the U.S., lower barriers for bank custody, and restore confidence in digital assets. While the executive orders have not yet been finalized, early signs point to a dramatic realignment in U.S. cryptocurrency regulation—one that could have lasting effects on markets, banks, and investors worldwide.