By Gram Slattery, Chris Prentice and Jarrett Renshaw

WASHINGTON (Reuters) – President-elect Donald Trump plans to use his executive powers to reduce the regulatory burden facing cryptocurrency companies and promote adoption of the digital asset in his first few terms. day in office, according to three people briefed on the plan.

Trump, who solicited crypto cash on the campaign trail with promises to be a “crypto president,” is expected to sign an executive order creating a crypto advisory council, an idea he first floated in July, said two of the sources who asked not to be identified. discuss private deliberations.

Bloomberg News first reported on Thursday that Trump plans to issue an executive order to create a crypto council, which will help advise the government on crypto-friendly policy. There may be 20 members, according to one of the sources.

Trump’s advisers are also discussing using an executive order to direct the Securities and Exchange Commission to cancel the 2022 accounting guidance known as “SAB 121” that makes it too expensive for some companies, especially already the banks, which will hold the cryptocurrencies for third parties, the people said.

Trump is also expected to order an end to “Operation Choke Point 2.0,” the term used by crypto executives to describe what they say is a concerted effort by banking regulators to strangle the crypto companies from the traditional financial system by directing banks to refuse them. service.

Bank regulators have denied any such effort.

Reuters could not determine whether Trump would direct the changes through one or more executive orders, but sources said the goal was to quickly send a strong signal that the new administration widely supports the adoption of digital assets.

If implemented by relevant regulators, Trump’s expected policy directives have the potential to push cryptocurrencies into the mainstream, say regulatory and crypto experts.

That is in stark contrast to President Joe Biden’s regulators who, in an effort to protect Americans from fraud and money laundering, are cracking down on crypto companies, suing exchanges like Coinbase (NASDAQ :), Binance, Kraken and more still in federal court.

Critics of the cryptocurrency industry point to the downfall of top crypto executives Sam Bankman-Fried, who was sentenced to 25 years for fraud, and Binance founder Changpeng Zhao, who was briefly jailed for money laundering violations, as evidence of the dangers of the industry.

A representative for Trump, who counts many crypto advocates among his financial backers and top cabinet picks, did not immediately respond to a request for comment. The SEC did not immediately respond to a request for comment.

Cryptocurrency regulation is just one of many topics Trump is expected to address with executive orders in the opening days of his second four-year term.

The incoming president’s team has promised several executive orders on topics ranging from energy production to illegal immigration.