Allaire believes these orders will pave the way for greater institutional adoption of cryptocurrencies, while Coinbase anticipates increased bank involvement in crypto custody.
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| Circle CEO calls for the repeal of the SEC's Staff Accounting Bulletin 121, which he believes hinders broader crypto adoption by restricting financial institutions. Image Illustration: ChicHue |
New York City, NY, USA --- January 21, 2025:
Circle CEO Jeremy Allaire expects the incoming U.S. president to soon issue executive orders that could significantly impact the cryptocurrency landscape. According to a Reuters report published by PANews on January 21, Allaire anticipates these orders to allow banks to engage more deeply in the crypto market.
Specifically, Allaire expects these orders to permit banks to trade cryptocurrencies, offer crypto investment options to high-net-worth clients, and even hold crypto assets within their investment portfolios. This move would represent a significant shift in the regulatory landscape, potentially opening the door for greater institutional adoption of cryptocurrencies.
Allaire has also called for the repeal of the SEC's Staff Accounting Bulletin 121, which he believes currently hinders the broader adoption of crypto by imposing restrictive regulations on financial institutions holding crypto assets. He believes this repeal is crucial for fostering a more inclusive and dynamic crypto market.
Furthermore, Coinbase Chief Policy Officer Faryar Shirzad echoed Allaire's optimism, stating that he expects the new SEC to take action that will allow banks to play a more significant role in crypto custody services. This suggests a growing consensus among industry leaders that the regulatory environment for cryptocurrencies in the U.S. is poised for significant change.
These anticipated executive orders and the potential changes to SEC regulations could have a profound impact on the cryptocurrency market, potentially driving increased institutional investment and broader public adoption of digital assets.