Circle CEO Jeremy Allaire claims that regulation from the U.S. Securities and Exchange Commission is preventing financial institutions and companies from holding cryptocurrency, and he is calling for its repeal.
The regulation known as Staff Accounting Bulletin 121 requires banks to classify digital assets as liabilities on their balance sheets. This change leads to higher capital requirements and increased costs for accounting and auditing, making it more expensive for financial institutions to hold cryptocurrency.
In a Reuters interview, Allaire criticized the rule, calling it “punitive” for banks, financial institutions, and corporations holding crypto assets on their balance sheets. While Circle, the issuer of USD Coin (USDC), has already partnered with banks for its operations, he suggested that the regulation hinders broader crypto adoption within the banking sector.
The CEO expressed hope that President Donald Trump will swiftly address the issue, stating he is “strongly in favour of repealing” the rule and hopes Trump will take action. Trump, who has vowed to be a “crypto president,” is expected to issue executive orders to ease crypto-related regulations, though the timing of these orders remains uncertain.
In the same interview, Faryar Shirzad, Coinbase’s Chief Policy Officer, echoed similar sentiments, stating that the new administration “will almost certainly bring banks much more into the custodial space.” Allaire also anticipates increased congressional activity on crypto regulations in the coming weeks.
In another development, former Coinbase CTO Balaji Srinivasan proposed that Donald Trump distribute $TRUMP tokens to U.S. citizens via a mailing list. Srinivasan, praising Trump as the “first crypto president,” noted that one-third of Americans have bought the token. He suggested a strategy to address alignment issues by airdropping $100 worth of $TRUMP tokens to 77 million supporters, totalling $7.7 billion. Increasing the amount to $500 per person could reserve about $20 billion, helping align Trump with citizens and promote crypto adoption.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
