Fix, Trump to let banks store Bitcoin

Bittime - President-elect Donald Trump is rumored to soon issue an executive order supporting digital assets, including Bitcoin (BTC). The order allows banks and financial institutions to hold Bitcoin on behalf of their clients, a move that is considered a turning point in crypto regulation in the United States.

The move marks a major change from previous policies that were seen as limiting the growth of the crypto industry. With the full support of his tech team, Trump is committed to strengthening America's technological dominance, including blockchain and digital assets.

Trump's Support for Bitcoin and Digital Assets

The planned executive order aims to repeal a controversial regulatory guidance called SAB 121. This guidance previously required banks holding digital assets to record them as liabilities on their balance sheets.

This was considered a huge barrier for financial institutions looking to get involved in the world of digital assets. By repealing the rule, the Trump administration hopes to encourage wider adoption of Bitcoin and other digital assets in the traditional financial sector.

Also read: Bitcoin Price Recovers After Trump Announces Executive Order

Big Plans to Advance Blockchain Technology

Trump is not only focused on Bitcoin, but also on blockchain technology as a whole. In discussions with tech leaders like Marc Andreessen and David Sacks, the plan is designed to encourage innovation.

The order is expected to create a clear legal framework for crypto companies operating in the US. With this move, blockchain startups, institutional investors, and decentralized finance platforms are expected to develop faster.

Addressing the De-Banking Problem

One of the main points in this policy is to solve the “de-banking” problem. Many crypto companies previously faced difficulties getting banking support due to strict rules.

With this new policy, banks will have clear guidelines to support crypto companies without facing significant legal risks. This move is expected to give the crypto industry more confidence to operate in the US.

Also read: BlackRock Launches Bitcoin ETF for Canadian Investors, BTC Recovers!

A Big Step for the Future of Bitcoin

This policy will not only benefit industry players, but also investors who hold Bitcoin. With clear regulatory support, the value of Bitcoin is expected to be more stable and increase in the long run.

“This step shows that the Trump administration is serious about supporting technological innovation and digital assets,” said one industry player.

This policy change brings new hope to the crypto community, marking the beginning of a new era in digital asset management and investment in the United States.

FAQ

What are the main steps Trump will take regarding Bitcoin?

President-elect Donald Trump plans to issue an executive order allowing banks and financial institutions to hold Bitcoin and digital assets on behalf of clients. The move is aimed at supporting the crypto industry and advancing blockchain technology innovation in the US.

How will this order affect the crypto industry?

The order will repeal restrictive policies, such as SAB 121, that previously made it difficult for banks to store digital assets. With this new policy, it is expected that crypto companies will get better support from the traditional financial sector.

What impact will this policy have on investors who hold Bitcoin?

This policy can increase confidence in Bitcoin and create long-term stability. With clearer regulatory support, Bitcoin price is expected to have more growth potential in the future.

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Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

References

dailyhodl.com, US Banks Can Hold Bitcoin and Crypto Under Incoming Trump Executive Order: Report, accessed on January 14, 2025.

cryptobriefing.com, Trump's presidency set to kickstart with crypto-focused executive orders, accessed on January 14, 2025.

Author: AWW