TechFlow reported on January 21 that, according to Reuters, Circle CEO Jeremy Allaire said in an interview at the World Economic Forum annual meeting in Davos, Switzerland, that U.S. President Trump might soon sign an executive order making it easier for banks to hold digital assets. He expects Trump's crypto-supportive order to be issued "soon," though he did not specify a timeline. Allaire specifically highlighted the U.S. SEC’s Staff Accounting Bulletin (SAB 121), a controversial framework that prevents financial institutions from holding cryptocurrencies on their balance sheets.
Although Congress voted to overturn SAB 121, the resolution was later vetoed by Biden, who stated at the time, "My administration will not support measures that jeopardize the well-being of consumers and investors." Allaire and other cryptocurrency executives argue that SAB 121 is not designed to protect investors but rather hinders the adoption of new technology. "SAB 121 effectively imposes punitive measures on banks, financial institutions, and companies, even prohibiting them from holding crypto assets on their balance sheets," Allaire said, adding, "I think this is something that needs close attention in terms of executive action."
