Donald Trump’s EO Led SEC To Repeal SAB 121: Optimism Boosted

Key Insights

• President Donald Trump signs an executive order to strengthen U.S. leadership in digital finance.
• John E. Deaton advocates for a strategic Bitcoin reserve plan and tax policy overhaul.
• The Presidential Working Group on Digital Asset Markets will develop a federal regulatory framework, and David Sacks will chair the Working Group.

Following the successful inauguration, President Donald Trump recently signed an executive order. The order was titled “Strengthening American Leadership in Digital Financial Technology.” This move led to the SEC repeal of SAB 121. It is a regulation blocking the growth of the crypto sector.

Before its repeal, SAB 121 obliged financial institutions to reflect the fair value of cryptocurrencies on their balance sheets. However, accounting for such high-volatility assets as cryptos used to pose a lot of challenges.

Establishing a stable, fair market value was difficult and exposed institutions to increased risks. Compared to traditional assets, accounting complexities for digital assets made it harder for regulated financial services to engage with cryptos.

As an urgent matter, the discussions around repealing SAB 121 were initiated by Eric Weiss, a crypto asset manager. He emphasized that this change could be a significant catalyst for price appreciation in Bitcoin and the broader crypto market. That will significantly benefit from it.

His comments resonated with John E. Deaton, a former U.S. Senate candidate. He echoed Weiss’s sentiments and amplified the conversation within the community. Deaton’s views gained traction, attracting support from other figures, including Santiago Velez, co-founder of Block Digital.

Velez agreed with Deaton’s suggestions. He added further points that could assist the crypto council in shaping better policies under the Donald Trump administration.

John Deaton Outlined Suggestions For Crypto Council In Four Key Areas

The optimism is increasing amid the SEC’s recent repeal of SAB 121 under Donald Trump’s EO. That was the first suggestion trending on social platforms by John E Deaton. This has marked a significant step toward integrating cryptocurrencies into global economic systems.

In addition to suggestions like this repeal, John E. Deaton has also advocated for a strategic Bitcoin reserve plan. It is similar to a proposal made by Senator Cynthia Lummis back in 2024. This was his second primary suggestion to the council.

Per this suggestion, Deaton suggested that the U.S. government should securely lock away its 200,000 BTC for 20 years. This step will significantly signal the social community’s commitment to working with crypto businesses and enhancing national security.

Similarly, Deaton’s third recommendation focused on a comprehensive overhaul of cryptocurrency-related tax policy. He argues for a system that allows individuals to pay their taxes directly with digital currency without incurring additional taxes.

Furthermore, he emphasizes the need for a unique tax framework. Deaton believes the IRS’s current classification of crypto as property subject to capital gains taxes is too harsh. It requires reevaluation to better reflect the nature of digital assets.

A day later, Santiago Velez, co-founder of Block Digital, contributed 13 additional suggestions for the 24 industry experts-based crypto council. Deaton expressed his support for these proposals, highlighting the potential for significant changes in government policy regarding cryptocurrency.

The Donald Trump Signed EO & Cleared SAB 121: Is SBR Next?

Eleanor Terrett states significant groundwork is being laid in the crypto sector. This reflected a foundational effort by Donald Trump‘s council to benefit the United States.

For the betterment of the US, Donald Trump’s ****Executive Order established the Presidential Working Group on Digital Asset Markets. Its main goal is to enhance U.S. leadership in digital finance. This initiative comes alongside the SEC’s repeal of SAB 121.

The Working Group will develop a federal regulatory framework for digital assets. This includes stablecoins and will assess the creation of a national Strategic Bitcoin reserve. It has further sparked optimism within the crypto community.

Similarly, Terrett highlighted that David Sacks, the White House AI & Crypto Czar, will chair the Working Group. This group will also include the Secretary of the Treasury, the Chairman of the SEC, and leaders from other relevant departments and agencies.

David Sacks will engage with leading experts in digital assets and markets. It would ensure that the group’s actions are informed by expertise beyond the federal government.

This EO by Donald Trump directs departments and agencies to identify and recommend any regulations that affect digital assets. Notably, it also prohibits agencies from taking any steps to establish, issue, or promote central bank digital currencies (CBDCs).

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.