Bitcoin has bounced back to $94,000 following reports that Donald Trump is preparing to sign pro-crypto executive orders on his first day in office. 

These orders could overturn key regulatory measures, including the SEC’s Staff Accounting Bulletin 121 (SAB 121).

Trump is Reportedly Preparing to Overhaul Crypto Regulations Starting Day One

According to The Washington Post reports, the orders are expected to address major challenges faced by the crypto industry, such as banking restrictions and the controversial SAB 121. 

This SEC bulletin requires companies holding cryptocurrencies for clients to record those assets as liabilities on their balance sheets.

“The SEC has lifted SAB 121 on a case by case basis for big banks, but not widely enough. SEC Commissioner Hester Peirce told me that was a failure as it unfairly greenlit crypto custody for a select few. Biden’s veto against it aged poorly. Exciting times!,” wrote Zack Guzmán. 

SAB 121 has been a focal point of industry criticism. Lawmakers attempted to repeal the guidance last year. 

However, President Joe Biden vetoed the measure despite bipartisan support in Congress. Trump’s incoming administration is expected to revisit the matter immediately. 

Currently, the SAB 121 policy makes holding crypto more expensive and risky for banks. So, they are less likely to offer crypto custody or other services to their customers.

“Congress passed the repeal last year, but Biden vetoed it. It’s the third of Saylor’s three catalysts for $5m BTC: Spot ETFs Fair value accounting Banks can custody Bitcoin (SAB 121 repeal),”

Go to Source to See Full Article
Author: Mohammad Shahid