Circle CEO Predicts Trump Will Empower Banks to Embrace Digital Assets

Circle CEO Jeremy Allaire believes that President Donald Trump’s administration could play a pivotal role in expanding the integration of digital assets within traditional banking systems.

Speaking with Reuters, Allaire suggested that Trump may issue executive orders allowing banks to hold, trade, and offer crypto-related services, particularly to high-net-worth individuals.

Allaire also emphasized the need to repeal the SEC’s Staff Accounting Bulletin (SAB) 121, which requires companies to classify customer-held digital assets as liabilities on their balance sheets. He expressed optimism that Trump’s administration could address this issue, describing it as a critical step for the crypto industry’s growth.

During his re-election campaign, Trump shifted his stance on cryptocurrencies, promising to foster growth in the sector. He pledged to remove barriers that restrict crypto companies and investors from using digital assets and announced plans to halt the sale of seized Bitcoin by the government. These proposals marked a stark departure from his earlier skepticism toward cryptocurrencies.

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Circle, known for issuing the USDC stablecoin, recently contributed $1 million in USDC to Trump’s inaugural committee, signaling its alignment with the administration’s potential pro-crypto policies. This move highlights Circle’s strategic support for a regulatory environment that could significantly benefit the digital asset industry.

Kosta Gushterov