Finance

Trump Sets Eyes on Stronger Crypto Policy with New Advisors and Council

2024-11-13

Author: Chun

In an ambitious move to redefine the United States' stance on cryptocurrencies, President-elect Donald Trump is taking steps to attract candidates who hold industry-friendly views for key positions within the government’s regulatory framework. With the aspiration of positioning the U.S. as the "crypto capital of the world," Trump's transition team is actively engaging with cryptocurrency executives to plan a strategic overhaul of federal policy.

Revolutionizing SEC Regulation

One of the focal points of Trump’s post-election strategy is the Securities and Exchange Commission (SEC), a crucial agency in the regulation of digital assets. Trump’s vision aligns with his campaign pledges, generating excitement within the cryptocurrency sphere. Following his victory over Vice President Kamala Harris, cryptocurrencies are experiencing a noteworthy price surge, reflecting investor optimism for a regulatory environment that is more welcoming.

The discussions among Trump's advisors have included considerations for key leadership roles at the SEC. Names being floated for these positions include high-profile pro-crypto advocates such as former SEC official Daniel Gallagher, current commissioners Hester Peirce and Mark Uyeda, all of whom have publicly criticized the stringent enforcement measures undertaken by Chairman Gary Gensler's administration.

Aiming for Regulatory Clarity

Industry leaders expect Trump’s administration to prioritize regulatory clarity amidst what many entrepreneurs see as a disjointed legal landscape. Ripple CEO Brad Garlinghouse and other executives are hopeful that the new administration will advance comprehensive legislation that offers clear definitions for digital currencies like XRP, Litecoin, and Solana. Moreover, this legislation may pave the way for innovative investment products, including spot exchange-traded funds (ETFs) that focus on leading cryptocurrencies like Bitcoin and Ethereum, which received regulatory approval earlier this year.

Prominent figures in the crypto world, such as Elon Musk and Howard Lutnick, are reportedly engaging with the new administration to help shape its future policies. However, concerns about potential conflicts of interest have arisen, especially relating to Lutnick’s connections with Tether, a major stablecoin issuer.

A New Council for Digital Currencies

As Trump finalizes his strategy, plans are in motion to establish a presidential council specifically focused on digital currencies, alongside the appointment of a dedicated crypto advisor within the National Economic Council. This proactive initiative aims to address regulatory gaps in the digital asset sector.

However, the response from some Democrats has been critical, raising alarms about the possible consequences of Trump’s pro-crypto approach. They fear that loosening regulatory controls could lead to diminished consumer protections and expose investors to larger risks of fraud and market manipulation.

A Comprehensive Crypto Agenda in Sight

While the Trump administration looks set to implement sweeping changes, including exploring the creation of a national Bitcoin reserve, the success of these initiatives heavily relies on regulatory authority and collaboration with Congress. With the Republican Party regaining a majority, advocates believe that this may facilitate smoother passage for proposed regulatory reforms.

As we watch this developing story, one thing is clear: Trump's plans for cryptocurrency could revolutionize the financial landscape in the United States, but only time will tell how this ambitious regulatory shift will ultimately unfold.