Emily Walker
President-elect Donald Trump is set to change how the US government handles cryptocurrency, actively looking for candidates who support the industry for key regulatory roles.
According to the Washington Post, as he aims to position the United States as the “crypto capital of the world,” Trump’s transition team is engaging with cryptocurrency leaders to investigate potential adjustments to federal regulations.
SEC Changes Anticipated
Trump’s push for a more lenient regulatory framework aligns with his campaign pledges, which have received notable backing from the industry. This is reflected in the recent increase in cryptocurrency prices following his election win against Vice President Kamala Harris.
Initial talks among Trump’s advisors have centered on key financial regulatory bodies, particularly the Securities and Exchange Commission (SEC), with leadership selections expected to shape the future of digital asset regulations.
Among the potential candidates are a blend of current regulators, past officials, and financial executives known for their pro-crypto attitudes. Key figures include Daniel Gallagher, a former SEC official now associated with Robinhood, as well as pro-crypto commissioners Hester Peirce and Mark Uyeda.
These figures have voiced opposition to the SEC’s previous strategies under Chairman Gary Gensler and the Biden administration, especially regarding the strict enforcement actions against digital asset firms seen in recent years.
Trump’s Crypto Advisory Council
The crypto sector has long advocated for thorough legislation to clarify the status of currencies like XRP, Litecoin, and Solana, aiming to provide investor protections and enable new financial products like spot exchange-traded funds (ETFs) for Bitcoin and Ethereum approved earlier this year.
Trump’s backing has also drawn notable industry figures such as Elon Musk and Howard Lutnick, who are anticipated to influence the administration’s crypto agendas.
Nevertheless, Lutnick, who leads Cantor Fitzgerald, has expressed worries about potential conflicts of interest due to his connections with stablecoin issuer Tether and other crypto firms.
As Trump advances with his transition plans, reports suggest his team is considering forming a presidential council on digital currencies and appointing a specialized crypto advisor within the National Economic Council.
While supporters are optimistic, some Democrats have voiced apprehensions regarding the repercussions of Trump’s pro-crypto initiatives. Critics argue that the regulatory reforms sought could weaken consumer protections and expose investors to increased risks of fraud and market manipulation.
As the newly elected president looks to roll out an extensive agenda, possibly including the creation of a national Bitcoin reserve, the success of these initiatives will hinge on regulatory authority. With the Republican Party securing a majority in Congress, the path to achieving these goals may be smoother for Trump and the industry as a whole.
Featured image from AP, chart from TradingView.com