The cryptocurrency world is abuzz with speculation following reports that Donald Trump, recently re-elected as U.S. President, plans to introduce sweeping crypto reforms. With Bitcoin’s price nearing $100,000 and potential policies set to ignite a massive rally, the stage is set for a transformative moment in the crypto landscape.
Day-One Executive Orders to Shake Crypto Policies
On January 20, Trump is expected to sign executive orders targeting long-standing crypto challenges. These include repealing SAB121, a controversial accounting policy requiring banks holding Bitcoin and cryptocurrencies to treat them as liabilities. Critics argue this has stifled institutional adoption of crypto assets.
Trump’s team reportedly prioritises removing these roadblocks, with insiders hinting at a focus on “Operation ChokePoint 2.0.” This alleged policy under the Biden administration discouraged banks from servicing crypto firms, contributing to financial exclusion in the sector.
The End of SAB121: A $5 Million Bitcoin Dream?
The repeal of SAB121 could trigger an unprecedented Bitcoin rally, according to MicroStrategy‘s Michael Saylor. The billionaire predicts that lifting these restrictions will pave the way for widespread corporate adoption, pushing Bitcoin’s price to $5 million.
Two other catalysts—spot Bitcoin ETFs and fair value accounting—have already materialised. Last year, BlackRock’s spot Bitcoin ETF became one of the fastest-growing funds, bolstering institutional confidence in digital assets.
The Federal Reserve and the Looming Crisis
Adding urgency to these developments, the Federal Reserve faces mounting financial instability, with fears of a banking crisis on the horizon. Trump’s crypto-friendly stance could align with broader economic reforms, positioning the U.S. as a global leader in blockchain innovation.
Supporters argue that regulatory clarity and reduced financial barriers could unleash Bitcoin’s true potential, turning it into a $100 trillion asset class.
Crypto’s Mainstream Moment
The mainstreaming of crypto has been bolstered by figures like venture capitalist Marc Andreessen and Trump’s crypto advisor David Sacks. Both have played key roles in advocating for pro-crypto policies, with Andreessen recently amplifying the industry’s plight on the popular Joe Rogan podcast.
As institutional players like BlackRock and MicroStrategy double down on Bitcoin, the prospect of a crypto-driven economic transformation seems closer than ever.
With Trump’s imminent reforms, Bitcoin could be on the cusp of a historic price surge. While sceptics warn of market volatility, crypto enthusiasts believe this could mark the beginning of a new era. As January 20 approaches, all eyes are on Washington and the future of digital finance.
