As President-elect Donald Trump prepares to assume office, the cryptocurrency industry is optimistic about potential regulatory reforms that could reshape the digital asset landscape in the United States. At the forefront of the industry’s priorities is the establishment of a comprehensive regulatory framework for digital assets, which has long been a subject of contention.
Central to these expectations is a proposed executive order directing federal agencies, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), to collaborate on research and policy recommendations for regulating digital assets. While Congress holds the ultimate authority over how cryptocurrencies are classified, such an order could catalyze progress toward clearer guidelines.
Pro-Industry Leadership Team
President-elect Trump is assembling a team of regulatory leaders with strong industry ties, signaling a shift in approach. Former SEC commissioner Paul Atkins has been tapped to chair the SEC, while Scott Bessent is set to take the helm as Treasury Secretary. Additionally, Trump has introduced the new role of “Artificial Intelligence and Crypto Czar,” to be filled by David Sachs, co-founder of PayPal Holdings Inc.
“Those people are ultimately going to make the policy,” said Ari Redbord, global head of policy at TRM Labs, a blockchain intelligence firm. “They understand that you need to thread the needle as a regulator between enabling lawful users privacy within an open financial system, but at the same time stopping bad actors and ensuring consumer protection.”
Banking Access and Consumer Protection
The crypto industry has been advocating for greater access to banking services, particularly in light of challenges faced under the Biden administration. The 2023 closures of crypto-friendly banks Signature and Silvergate raised concerns about regulators pressuring banks to avoid dealing with cryptocurrency companies.
“A level regulatory playing field between the banking and crypto sectors as well as clear rules for permissible crypto-related products and services will support a more secure environment for consumers and the financial system,” said Rebeca Romero Rainey, president of the Independent Community Bankers of America, in a statement.
The departure of Federal Deposit Insurance Corp (FDIC) chair Martin Gruenberg, scheduled for January 19, has further fueled optimism among crypto proponents. Travis Hill, the FDIC’s vice-chair, is expected to assume the role, promising a more innovation-friendly approach. “I also expect the FDIC to take a more open-minded approach to innovation and technology adoption, while still promoting core safety and soundness principles,” Hill stated recently.
A National Priority
According to sources familiar with the matter, Trump plans to issue an executive order elevating cryptocurrency as a national priority. The order will reportedly create a crypto advisory council to advocate for the industry’s policy objectives and encourage collaboration between government agencies and crypto stakeholders.
Kristin Smith, CEO of the Blockchain Association, expressed hope for the incoming administration’s support. “We are hopeful and optimistic for strong leadership from the incoming administration, making clear that crypto is something we should encourage and embrace in the United States, not drive away,” she said.
With these anticipated changes, the Trump administration could mark a transformative chapter for the U.S. crypto industry, fostering innovation while addressing long-standing regulatory challenges.