Crypto industry puts regulatory framework at the top of Trump’s wish list
(Bloomberg) — As Inauguration Day approaches, members of the cryptocurrency industry are eagerly anticipating a series of executive actions that would benefit digital assets at the start of Trump’s second administration.
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Perhaps most significant is an executive order that prompts regulators, including the Commodity Futures Trading Commission and Securities and Exchange Commission, to collaborate on a digital asset policy framework. While decisions on how crypto-assets are classified will ultimately rest with Congress, the executive order could spur agencies to conduct research to move the issue forward. The industry’s largest U.S. companies, from Coinbase Global Inc. to Ripple Labs, have long advocated for clear regulatory guidelines for digital assets.
President-elect Donald Trump is filling out his team of regulatory leaders with pro-industry picks, including former SEC Commissioner Paul Atkins as chairman of the main securities industry regulator, Scott Scott Bessent serves as Finance Minister. He also introduced a new role: artificial intelligence and cryptocurrency czar, which will be filled by David Sachs, a general partner at venture capital firm Craft Venture and co-founder of PayPal Holdings Inc.
“These are the people who will ultimately set policy,” said Ari Redbord, global director of policy and government at blockchain intelligence firm TRM Labs. “They understand that as a regulator you need to protect the privacy of legitimate users in an open financial system while preventing between bad actors and ensuring consumer protection.”
The increased transparency would coincide with the crypto industry’s push for wider access to banking services. Under the Biden administration, regulators issued statements warning the banking industry of the risks faced by digital asset companies. The closure of crypto-friendly banks Signature and Silvergate in 2023 has reignited concerns that banks will be forced not to deal with cryptocurrency companies.
“A level regulatory playing field between the banking and cryptocurrency industries and clear rules for permitted cryptocurrency-related products and services will provide a safer environment for consumers and the financial system,” said Rebeca Romero Rainey, President, Independent Community Bankers USA , said in a statement on Friday.