U.S. President Donald Trump has signed an executive order aimed at removing banking obstacles for Web3 companies and establishing a regulatory framework for digital assets. A key aspect of the order is the creation of a working group on digital asset markets, which will focus on advancing U.S. leadership in the crypto industry and evaluating the formation of a strategic national digital assets stockpile.Key Exclusions: Fed and FDIC Left Out of Crypto Working GroupIn a notable decision, Trump’s executive order excludes the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) from participation in the cryptocurrency working group. This move has been welcomed by crypto industry leaders who viewed these institutions as obstacles to the sector’s growth.Caitlin Long, CEO of Custodia Bank, commented on the decision, stating that the Fed and FDIC “tried to kill the industry through debanking” and their exclusion is a significant victory for crypto businesses.During the previous administration, numerous crypto firms struggled to access traditional banking services, with critics accusing regulators of engaging in an "Operation Chokepoint 2.0," a coordinated effort to cut off banking support for crypto-related businesses.Stablecoin Regulation Shifts Away from Central Bank ControlThe executive order also shifts stablecoin regulatory oversight away from the Federal Reserve, with reports suggesting that Trump’s pick for Treasury Secretary, Scott Bessent, will take the lead in shaping stablecoin policies. Bessent, a former partner at Soros Fund Management, is expected to adopt a more crypto-friendly approach, potentially facilitating wider adoption and integration of stablecoins in the financial system.SEC Revokes SAB 121, Facilitating Crypto Custody for BanksIn a parallel development, the U.S. Securities and Exchange Commission (SEC) has repealed the controversial Staff Accounting Bulletin (SAB) 121, which required financial firms to record crypto assets held on behalf of customers as liabilities on their balance sheets. The new guidance, SAB 122, eliminates this requirement and is expected to smoothen the path for U.S. banks to offer crypto custody services.WazirX founder Nischal Shetty welcomed the regulatory shift, stating that it will make it “easier for U.S. banks to custody digital assets,” thereby fostering mainstream institutional adoption.The repeal of SAB 121 marks a significant policy change under Trump's leadership, with acting SEC Chair Mark Uyeda leading efforts to create a more supportive regulatory environment for the crypto industry.Trump’s latest executive order signals a major shift in U.S. crypto policy, potentially fostering innovation and investment while reducing regulatory friction. By sidelining traditional banking regulators and embracing a more market-driven approach, the administration aims to position the U.S. as a leader in the global digital asset landscape, according to cointelegraph.
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