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Separately, SEC staff repealed accounting guidance that the crypto industry blamed for inhibiting banks from offering custody services for digital assets. Released in 2022, Staff Accounting Bulletin No. 121 had called on businesses to account for customers’ cryptoassets as their own by listing them on their balance sheets.
The digital-asset market took the widely expected executive order and repeal of the accounting guidance in its stride. Bitcoin was little changed at about $103,200 as of 10:54 a.m. Friday in Singapore. Smaller tokens such as Ether and Solana traded in tight ranges.
“I don’t think any of what Trump will eventually do is priced into the market,” said Edward Chin, co-founder of Parataxis Capital. “The executive orders are fine, but I think the real legislation will be forthcoming.”
Trump’s About-Face
Trump used to be a skeptic about digital assets but pivoted to embracing the sector on the campaign trail, in part as the industry ramped up its involvement in the election through sizable political donations.
He and his wife Melania unveiled new memecoins just before his swearing in. Such coins are highly volatile tokens with no underlying assets to back up their value and no obvious practical purpose.
The president’s previous forays into crypto include issuing collections of nonfungible tokens, digital collectibles that show him in a variety of poses and costumes. Along with his sons, he’s also endorsed World Liberty Financial, a project that has been much-hyped but for which details remain scarce.
Bitcoin is up more than 50% since Trump’s election victory in early November. The largest digital asset reached a record high of $109,241 ahead of his swearing in. The rally subsequently moderated.
