From regulation to revolution? Circle CEO expects Trump to open doors for crypto in banking

Circle CEO Jeremy Allaire is predicting that US executive orders from newly inaugurated President Donald Trump could be issued "imminently," potentially opening the door for banks to engage in cryptocurrency trading, offer crypto investments to their high-net-worth clients, and even hold digital assets on their balance sheets.

This anticipation comes as the crypto industry awaits Trump's next moves, after his stated commitment to become a "crypto president" and his promise to remove regulatory roadblocks, fostering widespread adoption of digital assets.

USDC stablecoin issuer expects big changes

Circle is the issuer of the USDC stablecoin, a digital token pegged to the value of the US dollar.

USDC is currently the world's second-largest stablecoin by market value, and eighth-largest cryptocurrency according to CoinGecko, giving the firm a significant perspective on the market.

Trump's own newly created cryptocurrency has also surged in value after its release, reaching almost $12 billion in market cap.

Targeting SEC bulletin 121

Allaire said that one of the most important things for the crypto industry would be the repeal of the Securities and Exchange Commission's Staff Accounting Bulletin 121.

Allaire explained this bulletin has “effectively made it punitive for banks and financial institutions and corporations even to hold crypto assets on their balance sheet.”

“That’s something I think to watch closely in terms of EOs (executive orders)," Allaire said in an interview with the Reuters Global Markets Forum at the start of the World Economic Forum’s annual meeting in Davos this week.

Allaire added that Circle already has established commercial partnerships with a number of banks, which could further strengthen the ties between the traditional financial world and the crypto market.

Anticipating Congressional activity on crypto regulation

In addition to expecting executive action from the White House, Allaire also anticipates renewed activity from Congress regarding digital asset regulations.

"We expect Committee work to be very active, literally in the coming weeks," he said, suggesting a period of intense legislative focus on the cryptocurrency sector in the near future.