Circle’s CEO, Jeremy Allaire, recently expressed his expectation that President Donald Trump will take swift action regarding cryptocurrency regulations. According to Allaire, he anticipates executive orders from the new administration within a short timeframe, which would allow banks to engage in cryptocurrency trading, offer crypto investments to high-net-worth clients, and include these assets in their portfolios.
Trump, who has declared his intention to be a “crypto president,” is expected to implement measures aimed at reducing regulatory barriers and fostering broader acceptance of digital assets. Following his inauguration, he has already introduced his own cryptocurrency, a meme coin that saw a remarkable surge, reaching a market cap of $15 billion over the weekend—though this move has drawn criticism from various sectors within the crypto community.
Allaire highlighted a specific regulatory concern, calling for the repeal of the Securities and Exchange Commission’s Staff Accounting Bulletin 121. He argues that this regulation has created a punitive environment for banks and financial institutions, discouraging them from holding cryptocurrency on their balance sheets. “I advocate for its repeal, and I hope President Trump will act on this,” Allaire stated, emphasizing that Circle is already collaborating with banks as commercial partners.
Despite some backlash regarding the meme coin, the overall sentiment in the cryptocurrency sector appears optimistic with the incoming administration. This is a stark contrast to the previous four years, during which many in the industry felt that their interests were overlooked. Trump has appointed Paul Atkins, a former SEC commissioner and proponent of cryptocurrency, to oversee the SEC, and he plans to create a new role for a crypto and AI czar, a position likely to be filled by David Sacks, known for his critical stance on regulation.
Allaire is also looking forward to renewed congressional activity surrounding digital asset legislation, predicting that committee discussions will become increasingly dynamic in the weeks ahead. Circle, which issues the USDC stablecoin, the second-most widely used digital currency of its kind, believes that stablecoins will play a crucial role in bridging the divide between cryptocurrencies and traditional financial systems. “Customers will naturally gravitate toward stablecoins where they provide clear advantages,” remarked Miles Paschini, CEO of FV Bank, reinforcing the growing acceptance of these digital assets in everyday transactions.
