Circle CEO Jeremy Allaire has expressed optimism about President Donald Trump’s potential moves in the crypto sector, predicting that the president will soon issue executive orders aimed at enabling banks to trade, hold, and offer cryptocurrencies as part of investment portfolios for wealthy clients. Allaire, a prominent figure in the digital assets space, believes that Trump, who has often referred to himself as the “crypto president,” will push for less regulation and faster adoption of cryptocurrencies.
Speaking at the World Economic Forum in Davos, Allaire highlighted the challenges facing the crypto industry, particularly the SEC’s Staff Accounting Bulletin (SAB) 121, a regulation that prohibits banks from holding cryptocurrencies on their books. He called SAB 121 “punitive” and criticized it for restricting financial institutions from incorporating crypto assets into their portfolios.
SAB 121: A Barrier to Crypto Integration
One of the key barriers hindering the integration of cryptocurrencies into mainstream financial services is the controversial SAB 121 rule, which mandates that banks must treat cryptocurrencies as off-balance-sheet items. This regulation, according to Allaire, stifles innovation and prevents banks from fully participating in the growing crypto economy.
Allaire emphasized that this rule, along with other regulatory hurdles, has made it difficult for banks to add cryptocurrencies to their balance sheets or offer crypto-related services to clients. He noted that the SEC’s rule creates unnecessary friction for banks that are otherwise eager to embrace the digital asset revolution.
While Congress previously attempted to repeal SAB 121, President Joe Biden vetoed the effort, arguing that the rule is necessary to protect consumers and ensure the safety of financial institutions. However, crypto advocates like Allaire view the rule as an impediment to progress rather than a consumer safeguard, which has fueled calls for regulatory change within the industry.
Circle’s Support for Trump
Despite some setbacks, Allaire remains optimistic about Trump’s ability to drive pro-crypto policies forward. Circle, the company behind the USDC stablecoin, has shown its support for Trump’s administration in the past, notably donating $1 million in USDC stablecoin to his inauguration. This gesture reflects the company’s belief that Trump could be a strong ally in the push for crypto-friendly policies.
However, despite the backing from crypto companies like Circle, Trump’s inaugural speech in 2025 focused more on traditional political issues such as immigration, tariffs, and border security. As a result, many in the crypto community were left disappointed, as there were no immediate mentions of digital assets or crypto-related initiatives in his early agenda.
Bitcoin’s Response to Trump’s Inauguration
The announcement of Trump’s second term and the associated political uncertainty did little to dampen Bitcoin’s market performance, at least initially. On the day of Trump’s inauguration, Bitcoin surged to an all-time high above $109,000, fueled by expectations that a more crypto-friendly administration would accelerate digital asset adoption. However, Bitcoin's price settled at $108,528 after the initial excitement, reflecting a cautious optimism rather than a dramatic leap forward.
January 2025, Cryptoniteuae