Donald Trump is expected to sign executive orders shortly after taking office as president, targeting crypto debanking and overturning banking policies that require banks holding cryptocurrency to list digital assets as liabilities. These orders could radically change crypto regulations and related banking practices.
But who introduced these policies that complicate, or outright block, funding for crypto firms? And who’s the shadowy figure whispering in Trump’s ear about who to hire and which orders to sign?
What is Debanking for Crypto
According to The Washington Post, Donald Trump could sign executive orders addressing crypto debanking and banking accounting policies as early as his inauguration day. A key topic of discussion is the repeal of a rule requiring banks holding cryptocurrency to account for these assets as liabilities. This rule, introduced by the SEC in March 2022 (SAB 121 bulletin), has drawn widespread criticism from industry leaders.
Read also: Trump Nominates Paul Atkins as New SEC Chairman
The crypto industry has long accused Joe Biden’s administration of pressuring financial institutions to limit crypto companies' access to banking services. The so-called "Operation ChokePoint 2.0" has become a symbol of these alleged efforts.
Coinbase co-founder and CEO Brian Armstrong joined the criticism, condemning the "unethical and un-American actions" reportedly undertaken by the Biden administration.
While venture capitalists and tech executives have cited specific examples of debanking, no concrete evidence suggests this was part of a broader campaign to restrict cryptocurrency.
Paul Grewal, Coinbase’s Chief Legal Officer, commented:
"If banking regulators are willing to tell people to abandon this legitimate business, what other legal activities are they prepared to force banks to cut off?"
The Influence of Marc Andreessen and Venture Capitalists
Marc Andreessen, venture capitalist and champion of tech innovation, is reportedly playing a significant role in shaping policy for Trump’s new administration. He is said to be actively involved in selecting candidates for key positions across technology, defense, and intelligence sectors. This move signals the Trump administration’s desire to bring in specialists with hands-on experience in tech.
David Sacks, a prominent tech leader and Trump advisor on cryptocurrency and artificial intelligence, is a key figure in shaping Trump’s crypto strategy. In December, Sacks organized a meeting with tech executives to discuss plans to repeal Biden’s AI executive order and other regulations. He stressed the importance of eliminating policies that promote "woke AI" — a term that became one of the meeting’s focal points.
Broader cryptocurrency regulation strategies were also discussed during the event. According to attendees, Trump’s team is already drafting executive orders addressing crypto debanking and revisiting crypto asset accounting policies.
Attendees at a December dinner hosted by David Sacks observed that regulators drawn from the tech industry are better equipped to understand how complex systems work and can craft more balanced rules.
Andreessen’s support, along with other Silicon Valley leaders, has become particularly noteworthy in the aftermath of the FTX collapse in 2022. That event triggered a wave of banks withdrawing services from crypto companies, intensifying the debanking problem. Many experts believe Trump aims to tackle this issue head-on with new orders and strategies.
Abimbola Adu
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