Circle CEO Predicts Repeal of SAB 121 Under Trump

In the latest interview, Circle CEO Jeremy Allaire made a huge remark, saying he is expecting the repeal of SAB 121 and a new executive order regarding cryptocurrency today. 

BREAKING NEWS:

CIRCLE CEO BULLISH ON TRUMP ADMINISTRATION 🚀🚀🔥🔥

Expect a repeal of SAB 121 and executive orders on crypto, says Circle CEO Jeremy Allaire.

Do you want no tax on crypto? pic.twitter.com/ltv3RZwMNd

— Mintern (@MinswapIntern) January 22, 2025

What is SAB 121?

SAB 121 (Staff Accounting Bulletin No. 121) is interpretive guidance issued by the SEC on March 31, addressing how companies safeguard customers’ crypto assets and should account for them in their financial statements. 

On March 31, the SEC staff released Staff Accounting Bulletin No. 121, which provides interpretive guidance for a reporting entity that operates a platform that allows its users to transact in crypto-assets. The guidance is applicable to reporting entities that apply US GAAP or IFRS. 

It applies to entities that operate platforms for crypto transactions and have an obligation to safeguard customers’ crypto assets. The impacts companies offering crypto custody services, as they must now reflect these obligations in their financial statements. 

Amid the euphoria, the X user writes, “With the repeal of SAB 121 we can expect competitive rates somewhere around SOFR + 50-100 bps. This would be a borrowing rate of 5.3%. With real inflation running 7-9% the BTC CAGR would need to stay above 15%. I believe this is easily done for the foreseeable future.

Trump’s New Administration To Create Crypto-friendly Environment 

It’s been two days since Donald Trump officially became president of the U.S., and now the crypto community expects him to fulfill the flowery promises he made during his election campaign. 

Yesterday, the Securities and Exchange Commission (SEC) announced the formation of the crypto task force. The announcement can finally provide relief to crypto innovations, providing them with a clear pathway to establish and run their crypto-related operations.

For years, the agency has largely relied on enforcement actions to regulate the crypto space, however, this approach often left market participants uncertain about compliance requirements. 

Also Read: Secret Behind TRUMP Memecoin’s Meteoric Rise: $100 Soon?