Allaire is confident that the new government will promote the widespread adoption of digital assets.
Applaud that the new US Congress now has its own committee for Bitcoin.
The era in which cryptocurrencies, including bitcoin (BTC), are massively integrated into the banking system is about to begin. This is stated by Jeremy Allaire, CEO of Circle, the company that issues the stablecoin USD Coin (USDC), who hopes that the President of the United States, Donald Trump, will soon sign the necessary executive orders.
Trump was inaugurated yesterday as the 47th ruler of the United States, but, so far, he has not made any mention of Bitcoin. Besides, It is unknown if the digital currency has any connection with the dozens of executive orders that he has signed after arriving at the White House. Some community actors suspect that the new president has his own strategy to profit from the digital asset market, while others express disappointment that the president has not fulfilled the promises he made regarding Bitcoin.
However, Allaire is optimistic and is convinced that Trump will sign executive orders or decrees that will eliminate barriers regulations that prevent banks from holding digital assets like bitcoin. He refers to the controversial SAB 121 standard (Staff Accounting Bulletin 121), classified as “disastrous” for the industry. It was criticized last year by more than 40 Republican legislators, who sent a letter to Gary Gensler, requesting its annulment, to no avail.
In itself, the rule classifies cryptocurrencies as liabilities and with this, requires that custodians must have more capital reserved to cover them, in case their prices fall. The measure reduces the liquidity of companies that offer custody services and, for obvious reasons, discourages it. In such a way that SAB 121 is highly criticized because it imposes an accounting system that does not reflect the nature of digital assets, treating them as fiat money.
A legislative boom is coming
Previously, it had been reported that Bitcoin would be part of the presidential decrees that Trump would sign on the first day, something that encourages Allaire, who is convinced that the president will take action in that regard. In addition, Circle is establishing alliances with several banks, which demonstrates the confidence that the company has that, definitely, the new government will facilitate the integration of cryptocurrencies into the financial system traditional.
“That’s something that I think needs to be watched closely in terms of executive orders,” Allaire said during an interview with Reuters at the start of this week’s annual meeting of the World Economic Forum in Davos. “I am strongly in favor of repealing it [la SAB 121] and I hope that President Trump takes that action,” he added.
On the other hand, Circle’s CEO also anticipates an increase in regulatory activity in the US Congress, now favorable to cryptocurrencies. “We expect the work of the Committee to be very active, literally in the coming weeks,” he said. In that way, Allaire suggests that a period of intense legislative focus lies ahead for the digital assets sector.
Meanwhile, eyes remain on the next steps that the Trump administration will take regarding Bitcoin and the impact that its management will have on the US cryptocurrency market, beyond the launch of its own memecoin, and that of the first lady, or investments from its World Liberty Financial platform.
