On the first day of his presidency, Trump will abolish the accounting standard SAB 121 and remove the barriers to encryption custody in banks.

US President-elect Trump will officially take office on the 20th. It is reported that he is preparing to sign an executive order on his first day in office to abolish the controversial cryptocurrency accounting standard SAB 121 of the US Securities and Exchange Commission (SEC), which will have a positive impact on the cryptocurrency industry. (Summary: How will the enforcement of SAB 121 accounting law by SEC affect the encryption industry?) (Background: Biden vetoed the 'repeal of SAB 121 bill', BTC price drops by $66,000! Why is the controversial cryptocurrency accounting standard imposed by SEC causing anger?) Trump's inauguration ceremony will be held next Monday, and it is widely expected that his second term will be more friendly to cryptocurrency. In addition to appointing former PayPal COO David Sacks as the White House AI and Cryptocurrency czar, he will also nominate former regulatory official Paul Atkins, who supports cryptocurrency, to lead the SEC. According to The Washington Post, insiders revealed that David Sacks and Trump's transition team have jointly completed legislative strategies. Trump is expected to issue executive orders on his first day in office, addressing the issue of cryptocurrency industry's de-banking and abolishing the controversial cryptocurrency accounting standard SAB 121. Insiders pointed out that the Trump team has explicitly stated that this is a priority, and these upcoming executive measures are aimed at cryptocurrency regulation, with the aim of protecting cryptocurrency investors from what Trump calls the 'Washington bureaucratic swamp'. What is SAB 121? The cryptocurrency industry has always been concerned about SAB 121. SAB 121 is a guidance issued by the SEC, which will be implemented in March 2022. It requires custodians of digital assets to treat the digital assets they hold as liabilities and calculate them at fair value on their balance sheets. This requirement means that if a bank custodians $1 billion worth of BTC on behalf of its customers, it must hold $1 billion in cash to offset this 'liability' on its balance sheet. This provision is widely regarded as unreasonable because these assets belong to customers, not the bank's own assets. Critics argue that SAB 121 is actually excluding banks from the cryptocurrency market, which reduces protection for customers. As this standard applies to all entities regulated by the SEC, especially banks and financial institutions, it may result in higher capital requirements for them, thereby affecting their ability to provide cryptocurrency custody services. Biden vetoed the repeal of the SAB 121 bill. Under the strong rebound in the industry, both houses of the US Congress voted to repeal the SAB 121 bill in mid-May last year. However, Biden ultimately vetoed the bill at the end of May, stating that the repeal of SAB 121 could weaken the SEC's extensive powers in accounting practices. In July last year, the US House of Representatives held a vote to overturn Biden's support for SAB 121, but the voting results fell far short of the two-thirds majority required to overturn the President's decision. Some people in the cryptocurrency industry criticized the Biden administration for trying to hinder the encryption industry from accessing banking services. In response, federal agencies have denied this, such as the Federal Deposit Insurance Corporation (FDIC), which emphasized in the 2024 Risk Assessment Report that regulatory agencies, including the FDIC, 'continue to reiterate that banking institutions are neither prohibited nor discouraged from providing banking services to any specific type or category of customers'. If SAB 121 is successfully abolished, it will have a positive impact on the cryptocurrency industry, removing the high capital requirements for financial institutions, and lowering the threshold for banks and other financial institutions to provide encryption asset custody services, allowing more traditional financial institutions to safely and effectively enter the cryptocurrency market. Related reports: Standard Chartered: The probability of Trump including BTC in the US strategic reserve is slim, but he will overturn SAB 121 encryption accounting law after taking office. Is there a chance of lying in ambush? Trump's rumored 24-member encryption advisory committee, which crypto world leaders have a good chance to be selected? Former Vice Chairman of the Federal Reserve: Trade wars do not necessarily lead to inflation, Trump cannot influence the independence of the Fed. 'Trump rumored to abolish encryption accounting standard SAB 121 and remove obstacles to bank encryption custody on the first day of taking office' was first published on BlockTempo, the most influential blockchain news media in the blockchain world.