President-elect Donald Trump May Issue Crypto Executive Order on His First Day in Office

The executive order could include the establishment of a new crypto council and the relaxation of certain banking restrictions by scaling back U.S. Securities and Exchange Commission (SEC) regulations affecting the sector.

As President-elect Donald Trump prepares to assume office on January 20, his administration is reportedly considering substantial changes to U.S. cryptocurrency regulations. According to sources cited by Decrypt, Trump may issue an executive order on his first day in office, targeting key aspects of the crypto industry.

Potential Shifts in Crypto Policy

The executive order is expected to include the formation of a new crypto council and the easing of certain banking restrictions by rolling back U.S. Securities and Exchange Commission (SEC) regulations impacting the sector. Subsequent orders might address broader regulatory frameworks, such as a proposal to create a unified working group on digital assets involving the SEC and the Commodity Futures Trading Commission (CFTC).

Other anticipated actions include amending an SEC rule that has obstructed the decentralized finance (DeFi) sector. This move could align with Trump's reported financial interests in the industry through his DeFi project, World Liberty Financial. The administration may also integrate global crypto innovation into the U.S. Secretary of State's responsibilities, signaling a push for international leadership in digital asset technologies.

Broader Economic Policies and Impact on Crypto

Beyond crypto-specific measures, Trump's economic agenda—which includes stricter immigration controls and increased domestic energy production—could indirectly influence digital asset markets. Last year, he announced plans to “close the border” and expand domestic drilling, policies that could affect broader market sentiment and capital flows.

Market Response and Expert Analysis

Crypto markets have been consolidating as investors await clarity on Trump's policies. “The financial markets are currently in a consolidation phase, awaiting the initial actions and policy direction of the new U.S. administration,” said Ruslan Lienkha, head of markets at YouHodler. Lienkha anticipates greater volatility for altcoins such as Ethereum, Solana, and XRP, which are likely to follow Bitcoin's price movements with amplified fluctuations.

In the near term, Lienkha expects a “neutral-to-negative flat market,” with limited net capital inflows or outflows, as uncertainty persists. However, if Trump's policies prioritize innovation and deregulation in the crypto sector, they could pave the way for increased adoption and investment.