Jeremy Allaire explained that thanks to the advent of “cryptocurrency reforms”, banks could easily trade digital assets, hold them in an investment portfolio, offer wealthy clients investments in them and provide custody services.
Circle’s executive expects the U.S. Securities and Exchange Commission’s (SEC) accounting amendment SAB-121 to be repealed. This amendment requires companies that own cryptocurrencies to report them as financial liabilities. Because of SAB-121, banks, financial institutions and corporations fear penalties for even holding crypto assets on their balance sheet.
Allaire also expects Congress to begin crafting rules to regulate cryptocurrencies in the coming weeks. He hopes that after four years of Joe Biden’s hostile policies towards the crypto industry, the new Trump administration will be more friendly to industry companies.
In early December, Trump appointed Paul Atkins, who supports the development of cryptocurrencies, to the post of SEC chairman. Trump also promised to create a new position of “crypto czar”, which should be filled by the former chief operating officer of the payment company PayPal, David Sacks. It is expected that one of its main tasks will be the development of a regulatory framework for crypto assets.
Source: Bits

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