Trump ushers in new age for crypto, Wormhole Foundation’s Cathy Yoon says

Trump ushers in new age for crypto, Wormhole Foundation’s Cathy Yoon says

Trump’s Inauguration: A New Era for Cryptocurrency, Says Wormhole Foundation’s Cathy Yoon

As Donald Trump prepares for his second term as the 47th president of the United States on January 20, 2025, many in the crypto industry are optimistic about the future. Cathy Yoon, general counsel of the Wormhole Foundation, shared her thoughts with crypto.news on January 17, highlighting how Trump’s campaign promises and his selection of crypto-friendly figures for key positions may herald a new era for Bitcoin and the broader cryptocurrency ecosystem.

Yoon believes that Trump’s presidency will mark the end of the “regulation-by-enforcement” approach that has characterized recent years, particularly under the U.S. Securities and Exchange Commission (SEC). This regulatory approach, which has led to uncertainty and strained relations between the government and the crypto sector, has been a major source of frustration for crypto advocates.

A Shift Towards Collaboration

Yoon emphasized that under Trump’s administration, the crypto industry is expected to experience a more open and collaborative regulatory environment. With several crypto advocates appointed to prominent roles in the new administration, the tone is set for more constructive discussions and solutions that benefit both the industry and regulators.

"I am hopeful that the Trump administration will usher in a new age where crypto isn’t handicapped by the current regulation-by-enforcement regime," Yoon stated. "Rather, the expectation is that conversations will more likely have the opportunity to be open and beneficial, as opposed to the defensive and guarded nature of recent years."

SEC Leadership Changes

Yoon also pointed to Trump’s appointment of Paul Atkins as the new SEC chair, which she sees as a significant boost to the crypto industry. Atkins, known for his more balanced approach to crypto regulation, is expected to bring clarity and fairness to the SEC’s stance on the industry.

For Yoon and many in the crypto space, regulatory clarity remains the top priority. She believes that under the Trump administration, the industry could benefit from measures such as no-action relief or even the establishment of a regulatory sandbox that would allow crypto projects to develop and grow without the constant threat of enforcement actions.

"Clear rules will bolster overall adoption of crypto services and products," Yoon concluded, reflecting the hope that new regulations will support the growth of the sector rather than stifling it.

Trump’s Pro-Crypto Stance

Trump’s embrace of cryptocurrency during his campaign has been well received by the industry. He has positioned himself as a "Bitcoin president," promising to end the SEC’s perceived war on crypto and foster a more crypto-friendly environment in Washington. Key figures in his administration, such as Elon Musk, Vivek Ramaswamy, and Howard Lutnick, are expected to play pivotal roles in shaping the future of the crypto market.

Musk, a vocal supporter of Bitcoin and Dogecoin, has been instrumental in driving market sentiment, while Lutnick, Trump’s pick for Commerce Secretary, has made it clear that he holds Bitcoin himself. Lutnick, the CEO of Cantor Fitzgerald, also expressed his support for the crypto space during his speech at Bitcoin 2024.

Conclusion

With Trump’s inauguration just days away, the cryptocurrency industry is bracing for significant changes. The shift away from regulation-by-enforcement and the appointment of crypto advocates to key positions in the administration are seen as positive developments that could pave the way for a more favorable regulatory environment. If Trump follows through on his promises to support crypto, the industry may see a surge in innovation and adoption in the coming years.