The cryptocurrency industry is seeing immediate returns on its investment in Donald Trump's presidency, with major policy shifts and regulatory changes marking his first week in office.
Bitcoin traded around $105,000 by week's end, after hitting a record high of approximately $109,000 on Monday. Meanwhile, major Wall Street banks indicated they're preparing to expand their crypto offerings under the new regulatory framework.
"I don't think they could have imagined a better outcome than they just got in the past 48 hours," Benchmark's Bill Gurley told CNBC's "Closing Bell" on Friday, referring to the crypto industry's support of Trump.
Executive Order Reshapes Crypto Landscape
On Thursday, Trump signed an executive order calling on Treasury, SEC, and CFTC officials to join forces in evaluating the potential of stockpiling seized cryptocurrencies. The order outlined priorities including protecting bitcoin miners and software developers from what the president termed "persecution," while promoting U.S. dollar-pegged stablecoins and banning a digital dollar from the Federal Reserve.
The SEC followed with a landmark announcement, withdrawing SAB 121, an accounting rule that had made institutional crypto adoption more difficult by forcing banks to treat bitcoin and other tokens as liabilities on their balance sheets.
Wall Street Response
Goldman Sachs CEO David Solomon told CNBC in Davos that his bank would revisit crypto ownership now that regulations are changing. The CEOs of Morgan Stanley and Bank of America also indicated that Trump's pro-crypto stance could reshape their digital offerings plans.
"You have to remember, the last four years, we really felt like we were being attacked by this administration," Coinbase CEO Brian Armstrong said in Davos, criticizing the Biden White House's approach to crypto regulation.