Davis Polk partner David Portilla was quoted in Law360 discussing potential changes in crypto regulation under the Trump administration in 2025.

“At the SEC, I could certainly see rescinding or substantially revising Staff Accounting Bulletin 121 as an early priority,” David said. “I think, for the broader sets of issues, it’ll take a little bit longer for this to play out.”

Discussing crypto firms’ concerns over “debanking,” David noted that in addition to congressional scrutiny, new leadership of federal banking agencies will also likely examine the merit of the industry’s claims. “To the extent they find them to be accurate, I think they would take steps to revisit those practices as promptly as they can, but that will probably take some time,” he said.

Aside from addressing any debanking that may be occurring, banking regulators will also likely be part of the broader push from regulators to cultivate a more innovation-first environment, David continued. That may look like a return to the priorities detailed in a 2021 interagency policy sprint on crypto-related activities, when bank regulators said they would address custody standards, facilitation of purchases and sales of crypto assets, loans collateralized by crypto payments-related activities, including stablecoin, and holding crypto assets to principal.

“I would expect all of those to be on the table again,” he said.

“Crypto Heads Into 2025 Hoping Regulatory Clouds Will Clear,” Law360 (January 1, 2025) (subscription required)

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