Jeremy Allaire explained that with the advent of “cryptocurrency reforms,” banks could freely trade digital assets, hold them in their investment portfolios, offer wealthy clients investments in them, and provide custody services.

Circle CEO expects the SEC's proposed accounting amendment SAB-121 to be repealed. The amendment requires companies that hold cryptocurrencies to report them as financial liabilities. Because of SAB-121, banks, financial institutions, and corporations fear being penalized for even holding crypto assets on their balance sheets.

Allaire also expects Congress to begin drafting cryptocurrency regulations in the coming weeks. He hopes that after four years of Joe Biden's hostile policies toward the crypto industry, the new Trump administration will be more lenient toward industry companies.

In early December, Trump appointed cryptocurrency-friendly Paul Atkins as SEC chairman. Trump also promised to create a new position of “crypto czar,” to be filled by former PayPal (NASDAQ: PYPL ) COO David Sacks. One of his main tasks is expected to be developing a regulatory framework for crypto assets.