According to The Washington Post, on his first day in office, newly elected President Donald Trump is expected to sign several significant executive orders aimed at fostering the growth of the cryptocurrency industry in the United States. This comes after a prolonged period of restrictions under the Biden administration and the SEC. Key policies include repealing the crypto custody rule (SAB 121), establishing an advisory council on Crypto and AI, creating a national Bitcoin reserve, and considering a pardon for Ross Ulbricht.
Repealing SAB 121
The crypto custody rule (SAB 121), issued by the SEC during Biden’s presidency, is regarded as one of the most controversial policies in the digital finance sector. The rule mandates banks and financial institutions to record customers’ crypto holdings as liabilities on their balance sheets.
Although both the House and Senate voted overwhelmingly to repeal SAB 121 in 2024, President Biden used his veto power to keep the rule in effect. This move further alienated the crypto community and reinforced perceptions of Biden’s tough stance on the cryptocurrency industry.
Trump plans to sign an executive order directing the SEC to fully repeal SAB 121 and provide clearer guidelines on how digital assets should be treated on financial statements. This would alleviate regulatory burdens and encourage greater participation by financial institutions in the crypto space.
Establishing an Advisory Council
A major highlight of Trump’s plan is the creation of a Crypto Advisory Council—a historic first for the White House. The council is expected to bring together 20 top leaders from major technology and financial companies.
Bo Hines, a former Republican candidate, will serve as the council’s Executive Director, under the leadership of David Sacks—former COO of PayPal and now a White House advisor on crypto and AI policy.
The council will provide direct advice to the President and regulatory agencies such as the SEC and CFTC, aiming to establish a clear and effective regulatory framework for the industry. Notably, the CFTC may be granted expanded authority to regulate cryptocurrencies classified as commodities.
Related: Donald Trump Launches New NFT Collection
National Bitcoin Reserve
Trump has repeatedly expressed his commitment to establishing a Bitcoin reserve for the United States. It is anticipated that he may sign an executive order designating Bitcoin as a national reserve asset on his first day in office, leveraging the Stabilizing the US Dollar Act.
According to insiders, Trump envisions Bitcoin as a tool to address the U.S. national debt, which stands at $38 trillion, with a goal of driving Bitcoin’s price to $150,000 during the initial phase of his term. However, Mike Novogratz, CEO of Galaxy Digital, considers this scenario “highly unlikely” due to potential conflicts between branches of government.
Considering a Pardon for Ross Ulbricht
Trump has also previously pledged to pardon Ross Ulbricht, the founder of the Silk Road darknet marketplace. This decision would not only carry humanitarian significance, given Ross’s 12 years of imprisonment, but also signal a more open attitude toward pioneers in the cryptocurrency space.
Ross had previously submitted a clemency appeal to President Biden, explaining that he had no malicious intent when creating Silk Road. However, Biden denied the request and upheld the life sentence. Currently, Ross is preparing for the possibility of freedom by engaging in educational activities and staying informed on developments in the cryptocurrency industry.
