Bitcoin rebounds back to $95,000 as Trump plans to issue pro-crypto executive orders on his first day as president

Bitcoin has soared to $95,000 following reports that President-elect Donald Trump plans to issue executive orders to reshape cryptocurrency regulations on his first day in office.

The anticipated orders aim to dismantle barriers faced by the crypto industry, including contentious policies like the SEC’s Staff Accounting Bulletin 121 (SAB 121), which has been criticized for discouraging banks from offering crypto-related services.

Major Crypto Policy Overhaul Expected

According to The Washington Post, Trump’s executive orders will target key challenges faced by the cryptocurrency industry, including banking restrictions and the controversial SAB 121.

This SEC policy requires companies holding crypto for clients to record these holdings as liabilities, creating additional costs and risks for financial institutions.

SEC Commissioner Hester Peirce, a known crypto advocate, has been critical of SAB 121’s selective implementation, describing it as a failure that favors large banks while stifling broader industry participation.

Efforts to repeal the measure last year garnered bipartisan support in Congress but were vetoed by President Joe Biden. Trump’s administration is expected to prioritize reversing this policy.

Crypto analysts and industry leaders have welcomed the developments.

Zack Guzmán highlighted the significance of SAB 121’s repeal as a catalyst for Bitcoin’s growth, alongside advancements in fair-value accounting and the approval of Bitcoin exchange-traded funds (ETFs).

Meanwhile, crypto entrepreneur Julian Fahrer emphasized the impact of these reforms on fostering institutional participation in digital assets.

Crypto Markets Rebound on Policy Hopes

The news sparked a surge in crypto markets, with Bitcoin recovering from a two-month low of $89,000 to reach $95,000. Ethereum also rebounded, climbing from below $3,000 to $3,100.

Altcoins, such as AAVE, linked to Trump-affiliated financial ventures, saw rapid gains, with AAVE jumping 5% within an hour.

A New Era for Crypto Regulation

Trump’s anticipated orders reportedly include measures to counter “de-banking” practices that have hindered crypto businesses’ access to banking services.

FDIC Vice Chair Travis Hill has called for clearer guidelines to support the industry, and Trump’s team is reportedly considering restructuring banking regulators to streamline oversight.

Additionally, the incoming administration’s crypto-friendly appointments signal a shift in policy direction.

Former regulator Paul Atkins is set to lead the SEC, while David Sacks will assume the newly created role of Crypto Czar.

Industry giants such as Ripple, MoonPay, and Kraken have also lent significant support to Trump’s inauguration, likely securing early influence in policy discussions.

Bitcoin Reserve and Broader Crypto Initiatives

Speculation is rife about a potential executive order to establish a national Bitcoin reserve, with proposals suggesting a $21 billion investment over the next year.

As the world watches Trump’s inauguration next week, the crypto industry anticipates a pivotal shift in U.S. policy that could bolster growth, foster innovation, and restore stability to the volatile cryptocurrency market.

For investors, Trump’s pro-crypto agenda represents an era of opportunity underpinned by institutional support and regulatory clarity.