Allaire stated that the rule in question imposes a large financial burden on banks and therefore poses a serious obstacle to the adoption of cryptocurrencies by financial institutions.

This rule makes it difficult for banks to keep and record digital assets on their balance sheets. While requiring banks to present digital assets as liabilities, this leads to higher capital requirements for banks and increased accounting and auditing costs.

Allaire stated that this creates a major obstacle for banks and financial institutions and prevents the wider adoption of cryptocurrencies.

Circle CEO argues that this rule should be removed immediately so that the integration of cryptocurrencies into the financial ecosystem can be achieved more quickly.

Circle, the issuer of USD Coin (USDC), has cooperated with banks in many ways and carried out these transactions successfully.

However, Allaire stated that this SEC rule prevents banks from further adopting cryptocurrencies and prevents more financial institutions from entering the cryptocurrency market.

Allaire said this regulation poses a major obstacle for companies that want to tap into the potential of digital assets in the financial system.

Allaire, who wants this rule to be removed, also stated that he expects President Donald Trump, as a crypto-friendly president, to take steps on this issue.

Trump had stated during the election campaign that he would take a friendlier approach to cryptocurrencies, and Allaire hopes Trump will take swift action on cryptocurrency regulations.

“I strongly support repealing this, and I hope President Trump will take that step,” Allaire said. Trump is expected to make more comprehensive regulations regarding cryptocurrencies, but it is currently unclear when these regulations will be made.

Faryar Shirzad, Coinbase’s chief policy officer, expressed similar views and stated that the new administration will involve banks in more cryptocurrency custody areas.

Shirzad believes that improving banks’ ability to store cryptocurrencies securely will lead to wider acceptance of cryptocurrencies. Shirzad stated that he has a strong belief that the new administration will increase the capacity of financial institutions to manage and store digital assets.

Allaire argues that these regulations should be eliminated to create a huge opportunity for the cryptocurrency industry. Stating that such regulations pose an obstacle for the adoption of cryptocurrencies by a wider audience, Allaire stated that banks should be able to hold crypto assets more efficiently and securely.

Emphasizing that Congress should take a more active role in this issue, Allaire has a positive perspective on the future of cryptocurrency regulations. The growth of the cryptocurrency market and the elimination of uncertainties regarding regulations will be an important step for investors and crypto companies.

Allaire stated that this rule introduced by the SEC constitutes a major obstacle for the future of the cryptocurrency market, and thinks that such regulations should be eliminated so that cryptocurrencies are more easily accepted by financial institutions.

For the cryptocurrency ecosystem to thrive, it is critical for financial institutions to adopt these new digital assets. He advocates the view that such barriers should be removed so that cryptocurrencies can find more space in the financial world and trade becomes easier.

Circle CEO Jeremy Allaire states that the SEC’s “Staff Accounting Bulletin 121” rule prevents banks from holding cryptocurrencies and this rule should be removed quickly.

Allaire expects President Trump to act quickly on this issue and believes Congress should also take a more active role in shaping cryptocurrency regulations. These changes could help financial institutions more easily adopt digital assets and help cryptocurrencies gain wider acceptance.