Donald Trump's second presidential term may shift the course of cryptocurrency regulation in the United States. Trump is considering pro-crypto candidates for key administrative roles.
Trump’s Vision: A Pro-Crypto America
To establish the U.S. as a leader in the cryptocurrency field, Trump is examining pro-crypto candidates for positions at organizations such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Considered candidates include Hester Peirce, known as 'Crypto Mom,' and Daniel Gallagher, who has criticized the current SEC’s approach to crypto regulation. Mark Uyeda, who has concerns about current SEC policies, is also under consideration.
Potential Impact on Regulation
If Trump's team succeeds in implementing these changes, it could significantly affect how cryptocurrencies are regulated in the U.S. Under Biden, the crypto sector has been subject to strict regulations, particularly due to SEC actions led by Gary Gensler. The SEC has applied traditional securities laws to crypto assets, which many in the industry view as outdated. For example, actions have been taken against companies like Coinbase, which argue that the current regulatory framework is incompatible with the blockchain model.
Stablecoin Regulation
Trump’s team is exploring stablecoin regulation, which has become central in crypto discussions. Two major proposals are on the table: one is to pass a specific bill addressing stablecoins, and the other is to integrate stablecoin regulation into a broader crypto market structure bill. Both would require issuers to meet certain liquidity requirements, enhancing consumer protection and enabling banks to issue stablecoins. Such regulation could boost the credibility of the crypto sector for institutional and retail investors. With a Republican-majority Senate and House, Trump may have the political leverage needed to advance his legislative agenda, including new crypto-focused legislation during his second term.
The future of the cryptocurrency industry in the U.S. could be significantly reshaped by initiatives from the Trump administration, potentially strengthening America's position as a world leader in this sector.
