Trump Administration Signals Support for Cryptocurrency
The U.S. Securities and Exchange Commission (SEC) revoked Staff Accounting Bulletin 121
BY ALEX BOWER
JANUARY 24, 2025
WASHINGTON, D.C. – The Trump administration has taken significant steps to support the cryptocurrency industry, signaling a shift toward more favorable regulatory policies.
On January 23, the U.S. Securities and Exchange Commission (SEC) revoked Staff Accounting Bulletin 121, a 2022 guidance that required companies holding digital assets for clients to account for them as liabilities. This move is expected to reduce compliance costs and encourage financial institutions to offer cryptocurrency custody services. 
In a related development, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The order emphasizes promoting U.S. leadership in blockchain, digital assets, and other emerging financial technologies. It establishes a high-level working group tasked with developing a federal regulatory framework for digital assets by July. 
The executive order also calls for exploring the creation of a U.S. cryptocurrency reserve, aiming to solidify the nation’s position in the global digital asset market. 
These actions have elicited mixed reactions from the cryptocurrency market. Bitcoin’s price steadied at around $105,000, reflecting cautious optimism among investors. 
Industry leaders have welcomed the administration’s initiatives. “The revocation of restrictive accounting guidance and the establishment of a clear regulatory framework are positive steps for the industry,” said Hester Peirce, a Republican Commissioner at the SEC and leader of the newly formed crypto task force. 
However, some analysts urge caution, noting that the market’s response indicates uncertainty about the long-term implications of these policies. The establishment of a U.S. cryptocurrency reserve, in particular, has raised questions about its potential impact on the decentralized nature of digital assets. 
As the administration moves forward with its pro-crypto agenda, stakeholders across the financial sector are closely monitoring developments to assess their impact on the evolving landscape of digital finance.