President Trump signed an Executive Order on May 19, 2026, directing federal financial regulators to reassess and update rules that hinder digital asset integration. The order targets outdated regulations across agencies to reduce costs, foster competition, and encourage collaboration between traditional finance and the crypto sector.
This builds on an earlier Executive Order from January 23, 2025, establishing the President's Working Group on Digital Asset Markets. Additional moves include the repeal of SEC Staff Accounting Bulletin 121, which previously made bank crypto custody expensive, and DOJ guidance against "regulation by prosecution."
On March 6, 2025, Trump signed an order creating a Strategic Bitcoin Reserve, funded by forfeited assets rather than taxpayer purchases. The administration frames this as part of its goal to make the US the "crypto capital of the planet."
Beyond deregulation, the administration is working on market structure legislation and stablecoin frameworks. Stablecoin legislation has bipartisan momentum as a way to reinforce US dollar dominance in global digital payments.
For investors, the repeal of SAB 121 opens the door for major banks to offer crypto custody services, removing a key barrier for institutional adoption. The Strategic Bitcoin Reserve reduces sell pressure, as the government holds rather than auctions seized Bitcoin. However, lighter regulation carries risks, as seen in past crypto collapses like FTX and Terra/Luna.
Investors should watch stablecoin and market structure bills, which could create a durable regulatory foundation beyond any single administration.