Circle CEO Jeremy Allaire said Donald Trump could soon sign an Executive Order facilitating the ownership of Digital Assets by Banks.
The CEO of the second-largest stablecoin issuer in the industry believes the executive order would allow banks to trade crypto, offer crypto investments to wealthy clients, and hold it in portfolios.
Speaking at the Reuters Global Markets Forum at the start of this week’s World Economic Forum’s annual meeting in Davos.
Mr Jeremy explained that an executive order from Trump could roll back a specific clause by the Securities and Exchange Commission which forbids Banks, financial institutions, and corporations from holding crypto assets in their balance sheets.
His statements mirror the wave of optimism sweeping through the crypto industry at the moment following Donald Trump’s inauguration into office.
Staff Accounting Bulletin 121
The SEC’s Staff Accounting Bulletin (SAB) is a document issued by the staff of the U.S. Securities and Exchange Commission (SEC) to guide on specific accounting and disclosure issues.
These bulletins represent the staff’s interpretations of accounting principles and regulations but do not have the formal authority of law. Instead, they are intended to help companies comply with the SEC’s reporting requirements and ensure consistency in financial reporting.
The Bulletin effectively made it punitive for banks and financial institutions to hold crypto assets on their balance sheet and Circle’s CEO believes the Bulletin can be repelled with an executive order.
“That’s something I think to watch closely in terms of EOs (executive orders),”
“I’m strongly in favor of repealing it and I would hope that President Trump would take that action” Jeremy stated.
He added he already sees Banks as commercial partners in anticipation of the executive order.
Digital Assets Regulations
The Circle CEO shared his opinion on Digital assets regulation under the new administration and when he thinks it can begin to take shape. The founder expects new activity from Congress on the subject matter as soon as possible.
Circle is the second largest stablecoin issuer by market share. Its main competitor remains Tether USDT which enjoys the biggest share of the market.
New entries into the stablecoin market include PayPal’s PYUSD and Ripple’s RLUSD.
