President-elect Donald Trump is poised to change the U.S. government’s approach to cryptocurrencies by actively seeking candidates with industry-friendly views for key regulatory positions.
According to per The Washington Post As part of its strategy to establish the United States as the “crypto capital of the world,” Trump’s transition team is consulting with cryptocurrency executives to explore potential changes to federal policy.
SEC overhaul on the horizon
Trump’s commitment to a more liberal regulatory environment is consistent with his commitment campaign promiseswhich have gained significant support from the industry, as evidenced by the current upward trend in prices following the victory over Vice President Kamala Harris last Tuesday.
Early discussions among Trump’s advisers reportedly focused on financial regulatory agencies, particularly the Securities and Exchange Commission (SEC), where leadership choices will have a significant impact on the future of digital asset regulation.
Candidates under consideration are a mix of current regulators, former officials and financial industry executives known for their pro-crypto stances.
Notable names include: Daniel Gallagherformer SEC official, currently working at the American cryptocurrency exchange Robinhood, and cryptocurrency commissioners Hester Peirce and Mark Uyeda.
These individuals have publicly criticized past policies of the SEC and its Chairman Gary Gensler under President Joe Biden, particularly the agency’s tough enforcement of digital asset companies amid ongoing investigations and lawsuits against key players in recent years.
Trump’s cryptocurrency advisory team
Industry executives, including Ripple CEO Brad Garlinghouse, have noted that they are looking forward to what’s novel Trump administration focus on regulatory transparency, which is lacking in the face of a fragmented legal framework governing cryptocurrencies.
The digital assets sector has long called for comprehensive legislation defining the status of currencies such as XRP, Litecoin and Solana, ensuring investor protection and offering novel investment products such as funds listed on the spot exchange (ETFs) investing in Bitcoin and Ethereum that were approved earlier this year.
Trump’s support has also attracted high-profile industry figures, including Elon Musk and Howard Lutnick, who are involved in shaping the administration’s crypto policy.
However, Lutnick, CEO and chairman of asset management firm Cantor Fitzgerald, raised concerns about a potential conflict of interest given his ties to stablecoin issuer Tether and other cryptocurrency-related companies.
As Trump’s transition continues, The Post reports that his team is considering creating a presidential council on digital currencies and is considering appointing a dedicated cryptocurrency adviser within the National Economic Council.
Despite bullish look among supporters, some Democrats have expressed concerns about the potential consequences of Trump’s pro-crypto policies.
Critics argue that the regulatory changes demanded by the industry could undermine consumer protections and “expose investors to greater risk of fraud and market manipulation.”
However, the current 47th president aims to implement a comprehensive program of activities, including the possibility of creating a state Bitcoin Reservethe effectiveness of these plans will depend on the regulator.
However, once the Republican Party gains a majority in Congress, the path to these metrics may be easier for Trump and the broader industry.
Featured image from AP, chart from TradingView.com
