TL;DR
- Circle CEO Jeremy Allaire predicts an executive order from Donald Trump to boost digital asset custody by banks.
- The SEC’s SAB 121 rule, which prohibits financial institutions from recording cryptocurrencies on their balance sheets, is seen as a key obstacle.
- Despite expectations, Trump did not mention cryptocurrencies in his inaugural speech.
Jeremy Allaire, CEO of Circle, has drawn attention from the financial world by predicting that Donald Trump may soon issue an executive order to facilitate the inclusion of digital assets on bank balance sheets. According to Allaire, such a move could alleviate challenges faced by financial institutions under the SEC’s SAB 121 rule. This regulation prohibits banks from registering cryptocurrencies as part of their balance sheets, which has raised concerns in the industry.
Although Congress previously attempted to overturn SAB 121, President Joe Biden’s veto kept the rule in place. Allaire argues that the intent behind this regulation is not to protect investors but to slow the development of emerging financial technologies. This has limited banks’ ability to meet the growing demand for cryptocurrency-related services, describing the rule as “punitive.” Allaire also emphasized the need for regulatory clarity to ensure that the United States remains competitive in the global financial technology race, particularly as other countries adopt crypto-friendly policies.
The Impact of Trump’s Inauguration on the Crypto Market
Donald Trump’s recent inauguration raised high expectations among the cryptocurrency community, but his inaugural speech made no direct reference to digital assets. Instead, Trump focused on issues such as immigration, foreign trade, and the Middle East crisis.
Despite this omission, the cryptocurrency market experienced notable volatility. Bitcoin reached an all-time high of $109,000 before pulling back to $103,528. Futures markets showed mild optimism, with premiums over spot markets rising from 12% to 14% in the days leading up to the inauguration. However, these figures remain far from the confidence levels seen in previous bullish rallies.
Moreover, cryptocurrency exchange-traded products (ETPs) recorded significant inflows prior to the event, accumulating $2.2 billion, of which $1.9 billion went into Bitcoin-related funds. This brought net Bitcoin fund inflows in 2025 to $2.7 billion, according to CoinShares.
While the new administration’s official stance on cryptocurrencies remains uncertain, Allaire’s predictions, coupled with market movements, suggest that transformative changes could be brewing in the financial landscape. Investors and policymakers alike will need to monitor these developments closely to adapt to the rapidly evolving crypto ecosystem.
