The cryptocurrency sector advocates for comprehensive policies to foster the broad acceptance of digital assets. As they look ahead, industry leaders are contemplating the most compelling figures to champion these initiatives, particularly in light of the expected cryptocurrency-friendly environment under President-elect Donald Trump.
Crypto companies had been preparing for a more lenient regulatory environment under a new administration. However, with Donald Trump’s significant win and the expectation of a Republican majority in Congress, the stage is set for a substantial and enduring transformation in crypto policy. Trump actively sought support from the cryptocurrency sector by pledging to become a “crypto president,” industry leaders assert that he now possesses a significant mandate to fulfil these commitments.
Industry leaders are advocating for a series of initiatives, which may include executive orders aimed at regulating crypto firms’ access to banking services. According to executives, they are also calling for crypto-friendly appointments across various positions, alongside selecting a new chair for the Securities and Exchange Commission (SEC).
“We’ve experienced an administration characterized by negativity, and we are eager to break through that gridlock,” stated Mike Belshe, CEO of the institutional crypto platform BitGo, who organized a campaign fundraiser for Trump in July. “The voters of America have expressed a clear desire for that.”
On Wednesday, Bitcoin surged past the $90,000 mark, fueled by increasing optimism surrounding policy developments. Analysts now speculate that the leading cryptocurrency may reach the $100,000 milestone.
Some industry requests may be addressed swiftly, particularly by appointing pro-crypto nominees to financial regulatory agencies. In contrast, other initiatives, like the passage of legislation to establish a regulatory framework for digital assets, are likely to require more time.
Trump has announced his commitment to establishing a cryptocurrency advisory council. As the new administration takes shape, the question of who will occupy the council remains uncertain. Meanwhile, crypto executives actively discuss potential candidates for pivotal roles in shaping cryptocurrency policy.
“There is a palpable sense of curiosity in Washington regarding the future leadership of these agencies,” remarked Kara Calvert, head of U.S. policy at Coinbase. “It is crucial for companies such as Coinbase and smaller startups to establish a clear point of view.”
Jonathan Jachym, the global head of policy at the cryptocurrency exchange Kraken, stated that the industry is evaluating potential candidates for leadership roles to steer policy development.
Grzegorz Drozdz, an analyst at Conotoxia, noted that before the election, investors placed bets on options predicting that Bitcoin’s price would surpass $80,000 or even reach $100,000. He highlighted that the value of these bets has increased, primarily influenced by the election results.
During the Biden administration, the SEC and Treasury intensified their scrutiny of cryptocurrency firms, citing potential securities violations and anti-money laundering regulations. Concurrently, banking regulators have advised financial institutions to avoid cryptocurrency ventures. Meanwhile, legislative efforts in Congress aimed at fostering broader cryptocurrency adoption have yet to yield significant progress.
The political landscape in Washington could shift dramatically under Republican leadership.
The cryptocurrency sector anticipates that Trump will commit to creating a strategic U.S. bitcoin reserve in July. This initiative, regarded as one of his more ambitious promises, is now viewed by industry executives as a tangible prospect. “It legitimizes the asset class more,” stated Marshall Beard, Chief Operating Officer of Gemini, the cryptocurrency exchange founded by the Winklevoss twins, who donated to Trump.
There is anticipation within the industry that Trump’s bank regulators will adopt a more lenient approach toward cryptocurrency. Numerous cryptocurrency companies face challenges securing banking partnerships as regulators express concerns over potential risks. This scrutiny has intensified, particularly after the collapse of several crypto-friendly lenders in the United States last year.
Jachym indicated that bank regulators had exerted “negative pressure” on relationships with cryptocurrency, a situation that could shift should lawmakers establish a new regulatory framework for the sector.
In July, Trump assured that he would prevent banks from “choking” crypto companies out of the traditional financial system. Some executives have speculated that the president-elect might tackle the issue through an executive order.
“A statement from the White House could significantly contribute to addressing the issue,” remarked Kristin Smith, the chief executive of the Blockchain Association, a prominent crypto trade organization.
In the campaign’s early stages, cryptocurrency firms expressed optimism that the newly appointed chair of the SEC under Trump would establish a waiver system for their operations. However, discussions have shifted among industry executives towards advocating for expedited “no-action” letters from the agency. According to one executive’s insights, these letters would enable crypto companies to function without the looming threat of executive backlash.
Smith indicated that the industry is gearing up for a renewed effort to advocate for legislation favourable to cryptocurrencies. As Republicans are anticipated to gain control of the House, they may streamline the passage of spending bills through a simple majority vote. This method, known as “reconciliation,” frequently enables less significant provisions to attach themselves to essential spending legislation. Smith remarked that this could be “a pathway for getting something done.”
Coinbase and various cryptocurrency firms allocated over $119 million to support congressional candidates who advocate for pro-crypto policies in a significant investment in the political landscape. Many of these candidates emerged victorious in their respective races, including Ohio Republican Bernie Moreno. A key Senate seat has been secured from Democratic crypto sceptic Sherrod Brown, setting the stage for potentially significant legislative changes, according to executives.
Calvert declared that the upcoming 2025 Congress is poised to be “the most pro-crypto Congress in history.”