Crypto Industry Lists Regulatory Framework at the Top of Its Trump Wish List

Crypto Industry Lists Regulatory Framework at the Top of Its Trump Wish List

As President-elect Donald Trump's inauguration day nears, members of the cryptocurrency industry are eagerly anticipating a series of digital asset-friendly executive actions that could shape the future of the sector under his second administration.

The potential centerpiece of these actions could be an executive order directing key regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), to collaborate in creating a cohesive framework for digital asset policy. While final decisions on how crypto assets are classified will ultimately fall to Congress, such an order could stimulate further research and prompt regulatory agencies to address the issue more effectively. Leading U.S. crypto firms, including Coinbase Global Inc. and Ripple Labs, have long been advocating for clear and consistent regulatory guidelines for digital assets.

To support this push, Trump is staffing his regulatory teams with pro-crypto leaders, including former SEC Commissioner Paul Atkins as the potential chair of the SEC and Scott Bessent as Treasury Secretary. Additionally, a new position dedicated to both artificial intelligence and cryptocurrency will be filled by David Sachs, the general partner at Craft Ventures and a co-founder of PayPal Holdings Inc. These appointments suggest that the Trump administration may prioritize pro-industry policies that could significantly affect digital asset regulation.

Ari Redbord, the global head of policy and government at blockchain intelligence company TRM Labs, highlighted that these leaders understand the delicate balance required in regulating the crypto sector. He stated, “They understand that you need to thread the needle as a regulator between enabling lawful users’ privacy within an open financial system, but at the same time stopping bad actors and ensuring consumer protection.”

Clearer regulations would also support the crypto industry's ongoing efforts to secure broader access to banking services. Under the Biden administration, regulators issued warnings about the risks associated with banking digital asset companies. The shutdowns of crypto-friendly banks like Signature and Silvergate in 2023 fueled concerns that the financial sector was under pressure to limit its dealings with crypto companies. 

Rebeca Romero Rainey, president of the Independent Community Bankers of America, echoed these concerns, stating, “A level regulatory playing field between the banking and crypto sectors as well as clear rules for permissible crypto-related products and services will support a more secure environment for consumers and the financial system.”

As Trump prepares to take office, all eyes are on how these executive actions may pave the way for clearer and more supportive regulations for the rapidly evolving crypto industry.