President-elect Donald Trump’s team is talking to leaders in the cryptocurrency industry about possible changes in how digital currencies are regulated in the U.S. They are considering hiring crypto-friendly people for key positions in financial regulatory agencies. Sources say that Trump wants to make the U.S. the “crypto capital of the planet” by adopting a more relaxed approach to cryptocurrency rules, in line with his campaign promise.
Crypto-Friendly Appointments
The Washington Post recently reported that Donald Trump’s transition team is considering several candidates who are friendly toward cryptocurrency for important financial positions. These positions include roles at the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Deposit Insurance Corporation (FDIC).
Some of the names being considered for these positions are Daniel Gallagher, a former SEC official who now works at Robinhood; Hester Peirce and Mark Uyeda, both current Republican commissioners at the SEC; and Paul Atkins, a former SEC commissioner.
Trump’s team has also reportedly been talking to crypto companies about creating a new presidential council on digital currencies. These appointments are important because the people chosen will have the power to decide whether cryptocurrency becomes a bigger part of the financial system.
After Trump won the election, the venture capital firm a16z predicted that the regulatory environment would become more friendly to the cryptocurrency industry. They believe this change could help many crypto tokens become “legitimate and lawful” financial products.
However, some Democratic lawmakers are concerned that easing regulations could lead to more fraud, manipulation, and instability in the crypto market. They point to the 2022 collapse of FTX as an example of the risks involved.
Executive Orders and SEC Overhaul
During Trump’s administration, there is talk about using executive orders to make it clearer how federal agencies should handle cryptocurrency. This could help simplify the rules and provide better guidelines, especially on whether certain digital assets should be considered as securities (financial products like stocks).
The leadership of the SEC (Securities and Exchange Commission) has been a point of controversy under Chairman Gary Gensler. Trump’s team is considering replacing him, and Trump has previously said he would “fire” Gensler if he returns to office in January.
Gensler’s time as SEC Chairman has been marked by legal battles with major crypto exchanges like Coinbase, Kraken, and Binance, which are accused of not following federal registration laws.
Brad Garlinghouse, the CEO of Ripple, a major crypto company, said that Gensler’s days at the SEC are “numbered” and that Ripple has been in contact with Trump’s transition team. Garlinghouse believes that the new administration will continue to focus on regulating the cryptocurrency industry.
Karoline Leavitt, a spokesperson for Trump’s transition team, emphasized that the American people voted him back into office with a strong majority. She added that Trump would keep his promises and follow through on his campaign goals.
