Circle CEO Jeremy Allaire predicted that US President Donald Trump would soon sign executive orders aimed at easing banking restrictions on digital assets, in a recent interview with Reuters. 

Allaire, who oversees the company behind the popular USD Coin (USDC), shared his expectations for quick action from the new administration to promote crypto adoption and reduce regulatory hurdles for financial institutions dealing with cryptocurrencies.

Trump’s Pro-Crypto Stance

Donald Trump has made no secret of his support for the crypto industry, calling himself a “crypto president” during his campaign. Allaire believes that the new president will issue executive orders to allow banks to trade and offer crypto investments to wealthy clients, which could further push the adoption of digital assets. 

Trump is also expected to make moves to lower regulatory roadblocks that currently hinder the financial industry’s involvement in cryptocurrencies.

One of the key issues Allaire raised during the interview was the controversial Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121. This regulation has been criticized by crypto leaders for making it difficult for banks and financial institutions to hold crypto assets on their balance sheets. 

According to Allaire, SAB 121 has made it "punitive" for these entities to engage with crypto assets, which is why he hopes that President Trump will take action to repeal it. He stressed the importance of the upcoming executive orders in this area, stating that a repeal would create a more favorable environment for banks to incorporate crypto into their portfolios.

"I'm strongly in favour of repealing it and I would hope that President Trump would take that action," Allaire stated.

Circle’s Allaire emphasized the importance of partnerships between crypto companies and traditional banks. Circle has already established relationships with commercial banks, and Allaire hopes that the new executive orders will allow for deeper collaboration. 

The Impact of Trump’s Meme Coin

Although Trump’s pro-crypto policies have garnered enthusiasm within the industry, the launch of his own meme coin, $TRUMP, caused some mixed reactions. Over the weekend, the coin reached a market cap of $15 billion, fueling both excitement and criticism. Some in the crypto world expressed concern over the project’s legitimacy and its potential to undermine the broader crypto ecosystem.

Despite Trump's focus on digital assets, he did not mention cryptocurrencies in his inaugural address on January 20.

Nevertheless, the crypto sector is cautiously optimistic, hoping that Trump’s leadership will lead to a more supportive regulatory environment for digital assets. The nomination of Paul Atkins, a former SEC commissioner and crypto advocate, to oversee the SEC has added to the industry’s hopes.