Crypto Industry Anticipates Friendly Executive Actions Under Trump Administration
As the countdown to inauguration day begins, the crypto industry is abuzz with anticipation. With a second Trump Administration on the horizon, industry insiders are hopeful for a slew of digital asset-friendly executive actions that will propel the sector forward.
Clear Regulatory Guidelines Top the Wish List
High on the industry’s agenda is an executive order that prompts regulatory agencies, including the Commodity Futures Trading Commission and the Securities and Exchange Commission, to collaborate on building a framework for digital asset policy. This move would provide much-needed clarity on how cryptoassets are classified, ultimately paving the way for Congress to make informed decisions.
Pro-Industry Picks Take the Helm
President-elect Trump’s staffing choices are music to the industry’s ears. Former SEC Commissioner Paul Atkins, a pro-industry pick, is set to chair the main securities industry regulator, while Scott Bessent will take the reins as Treasury Secretary. The introduction of a new role, artificial intelligence and crypto Czar, to be helmed by David Sachs, co-founder of PayPal Holdings Inc., is also seen as a positive development.
Threading the Needle: Balancing Privacy and Protection
According to Ari Redbord, global head of policy and government at blockchain intelligence company TRM Labs, the new regulatory leaders understand the delicate balance between enabling lawful users’ privacy within an open financial system and stopping bad actors while ensuring consumer protection.
Level Playing Field for Banking and Crypto
The industry is also pushing for a level regulatory playing field between the banking and crypto sectors. Clear rules for permissible crypto-related products and services would support a more secure environment for consumers and the financial system, says Rebeca Romero Rainey, president of the Independent Community Bankers of America.
New Era for FDIC and Crypto
The departure of FDIC Chair Martin Gruenberg has been met with celebration among critics who say his agency targeted the crypto industry. Federal Deposit Insurance Vice Chair Travis Hill, expected to take over Gruenberg’s seat, is likely to bring a more open-minded approach to innovation and technology adoption.
Easing of SAB 121: A Key Focus
Another key area of focus for the industry is the easing of Staff Accounting Bulletin No. 121, which requires banks to account for customers’ cryptoassets as their own. This change would allow banks to maintain lower levels of capital, making it easier for them to engage with the crypto sector.
Executive Order Elevates Crypto as Policy Priority
Trump is planning to release an executive order that elevates crypto as a policy priority, giving industry insiders a voice within his administration. The order is expected to name crypto as a national imperative or priority, guiding government agencies to work with the industry. A crypto advisory council will also be established to advocate for the industry’s policy priorities.
Industry Optimism Runs High
Kristin Smith, CEO of the Blockchain Association, is hopeful for strong leadership from the incoming administration, making clear that crypto is something the US should encourage and embrace, not drive away. With the stars aligning in favor of the crypto industry, the future looks bright for digital assets.
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