President-elect Donald Trump is poised to overhaul the US government’s approach to crypto, actively seeking candidates with industry-friendly views for key regulatory positions.
According to to the Washington Post, as part of his strategy to establish the United States as the “crypto capital of the world,” Trump’s transition team is consulting with cryptocurrency executives to explore possible changes in federal policy.
SEC overhaul on the horizon
Trump’s commitment to a more tolerant regulatory environment is in line with his own campaign promiseswhich have received significant support from the industry, as evidenced by the current upward trend in prices following his victory over Vice President Kamala Harris last Tuesday.
Initial discussions among Trump’s advisers reportedly focused on financial regulators, particularly the Securities and Exchange Commission (SEC), where leadership choices will significantly influence the future of digital asset regulation.
The candidates under consideration include a mix of current regulators, former officials and financial industry executives known for their pro-crypto stance.
Well-known names include Daniel Gallaghera former SEC official now at US-based cryptocurrency exchange Robinhood, and pro-crypto commissioners Hester Peirce and Mark Uyeda.
These individuals have publicly criticized the previous policies of the SEC and its Chairman Gary Gensler under President Joe Biden, particularly the agency’s heavy-handed enforcement against digital asset companies, with ongoing investigations and lawsuits against important players of recent years.
Trump’s Crypto Advisory Team
Industry executives, including Ripple CEO Brad Garlinghouse, have noted that they expect the new Trump administration to focus on regulatory clarity, which is lacking in a fragmented legal framework for cryptocurrencies.
The digital asset industry has long called for comprehensive legislation to define the status of currencies like XRP, Litecoin and Solana, provide investor protection and offer new investment products such as the spot exchange traded funds (ETFs) that invest 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 government’s crypto policy.
However, Lutnick, CEO and chairman of asset manager Cantor Fitzgerald, has raised concerns about potential conflicts of interest given his ties to stablecoin issuer Tether and other crypto-related companies.
As Trump moves forward with his transition, the Post reports that his team is exploring the creation of a presidential council on digital currencies and considering the appointment of a dedicated crypto advisor within the National Economic Council.
Despite the optimistic prospects among supporters, some Democrats have expressed concern about the potential implications of Trump’s pro-crypto policies.
Critics argue that the regulatory changes sought by the industry could undermine consumer protections and “expose investors to greater risks of fraud and market manipulation.”
While the now 47th president wants to implement a comprehensive agenda, including the possibility of creating a national agenda Bitcoin reservethe effectiveness of these plans will depend on regulatory authorities.
However, with the Republican Party gaining a majority in Congress, the path to these markers could be easier for Trump and the broader industry.
Featured image from AP, chart from TradingView.com