Jeremy Allaire, the CEO of Circle, believes there will be major changes in the crypto industry under the 47th president of the United States, Donald Trump.
The 47th president is likely to issue executive orders soon (pertaining to crypto), which could open the door for banks to actively participate in cryptocurrency trading, offer crypto investment opportunities to wealthy clients, and integrate digital assets into their financial portfolios.
Circle is the company behind USDC, a stablecoin pegged to the value of the US dollar. As the world’s second-largest stablecoin by market value and the eighth-largest cryptocurrency overall, USDC plays a critical role in the crypto ecosystem.
Allaire’s comments reinforce the potential for the U.S. government to support broader adoption of digital assets under Trump’s leadership.
Trump’s crypto stance
Donald Trump’s transformation from a vocal critic of cryptocurrency to an active supporter represents an important shift in his outlook on digital assets. In 2019, while serving as president, Trump openly criticized Bitcoin and other cryptocurrencies.
He described them as highly volatile, risky, and a potential tool for illegal activities. He also dismissed their value, arguing that they lacked intrinsic worth and that the U.S. dollar should remain the dominant global currency.
However, as digital assets gained widespread recognition and became a significant part of the financial system, Trump now sees the potential for innovation and economic growth tied to the sector.
With countries around the world investing in blockchain technology and exploring state-backed digital currencies, he realizes that embracing crypto could help the United States maintain its position as a global financial leader.
The political climate and evolving public opinion around crypto have influenced his perspective, necessitating a shift that has now turned into a commitment to make the United States the crypto capital of the world. Over time, cryptocurrencies have gained more mainstream acceptance, with major financial institutions, corporations, and even governments showing interest.
Adding to his now public interest in cryptocurencies, the United States 47th a couple of days before his inauguration launched the $TRUMP memecoin. He also endorsed the World Liberty Financial project and showed his support for another memecoin, $MELANIA, named after the now First Lady.
While these actions have drawn criticism, they highlight a complete reversal of Trump’s stance on cryptocurrencies compared to seven years ago.
Change Securities and Exchange Commission’s Staff Accounting Bulletin 121
While speaking about the new orders, the Allaire highlighted the need for specific regulatory reforms, particularly the repeal of the Securities and Exchange Commission’s Staff Accounting Bulletin 121.
This policy, according to him, has made it challenging for banks, financial institutions, and corporations to hold crypto assets on their balance sheets due to its punitive nature.
The Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, also known as SAB 121, is a set of rules that affects how companies, especially banks and financial institutions, handle cryptocurrencies. It gives guidance on how these organizations should record crypto assets on their balance sheets.
Under SAB 121, if a company holds cryptocurrencies for customers or on its own, it must list these assets as both liabilities and assets. This requirement means the company must account for additional financial risk simply by holding these assets. The rule also mandates that companies set aside extra funds to cover potential losses, even if such losses never materialize.
Critics contend that SAB 121 complicates and increases the cost for banks and other companies to integrate cryptocurrencies into their operations. They view it as a deterrent to adopting digital assets. Rep. Patrick McHenry and Senator Cynthia Lummis, in a letter to the SEC chair, called for the rescinding of the bulletin. They argue it “upends custody rules for digital assets, weakens consumer protections, and stifles financial innovation.
Circle CEO believes that President Trump would address this issue, adding that Circle already works closely with banks as commercial partners.
Beyond executive orders, Allaire sees Congress taking a more active role in shaping digital asset regulations. He predicts that congressional committees will begin work on new crypto-related legislation in the coming weeks.
