Incoming US President Poised to Shape Pro-Crypto Policies After Taking Office
With one week until President-elect Donald Trump assumes office, the crypto community is closely monitoring his key appointments and policy announcements. After shifting from dismissing Bitcoin as a “scam” in 2021 to championing digital assets during his 2024 campaign, Trump’s promises to reform crypto regulations could have a major impact—though whether he will prioritize these pledges remains to be seen.
Key Promises and Developments:
1. SEC Shake-Up: Gensler’s Departure and New Leadership
At the Bitcoin 2024 conference, Trump pledged to fire SEC Chair Gary Gensler on day one. Following the election, Gensler announced he would step down on Inauguration Day, January 20, clearing the path for a new chair. Trump has nominated former SEC Commissioner Paul Atkins, known for his pro-crypto stance, as Gensler’s replacement.
Atkins, if confirmed, could introduce regulatory changes regarding digital assets classified as securities and enforcement policies that have previously drawn criticism from the crypto community.
2. Potential Shift in Financial Regulation
Trump has signaled support for redefining the roles of the SEC and Commodity Futures Trading Commission (CFTC) through the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation would clarify oversight of digital assets, potentially reducing regulatory conflicts. Reports suggest that Trump plans to appoint a CFTC chair supportive of favorable crypto policies.
3. Establishment of a Digital Asset Advisory Council
Trump announced plans to form a council dedicated to crafting clear regulatory guidance for the digital asset sector within 100 days. Former PayPal COO David Sacks has been named the “crypto and AI czar,” while former congressional candidate Bo Hines will serve as executive director.
The council aims to promote innovation and provide the industry with the necessary resources for growth, though details on its exact responsibilities remain sparse.
4. Opposition to Central Bank Digital Currencies (CBDCs)
Trump has taken a firm stance against the development of a central bank digital currency (CBDC), stating at the Bitcoin 2024 conference that “there will never be a CBDC while I’m president.” Despite the Federal Reserve’s ongoing exploration of a digital dollar, Trump has vowed to block any efforts to create a CBDC.
While a president cannot directly dictate Federal Reserve policy, Trump’s influence through public pressure and appointments could steer the central bank’s direction.
Outlook and Impact
Trump’s administration is poised to reshape the regulatory landscape for digital assets. However, the extent of change will depend on how his nominees navigate legislative and institutional hurdles.
The crypto industry remains optimistic about pro-innovation reforms but will closely watch how these promises translate into actionable policies in the coming months.
