President-elect Donald Trump has begun assembling his crypto policy team, signaling a potential shift in the regulatory landscape. With the appointment of former PayPal executive and crypto advocate David Sacks as “White House A.I. & Crypto Czar” and the nomination of pro-crypto attorney Paul Atkins to head the Securities and Exchange Commission (SEC), Trump appears poised to fulfill his campaign promise to be a “crypto president.”
Announced on Thursday, Sacks’ new role as crypto czar introduces a unique position aimed at spearheading the administration’s efforts in artificial intelligence and cryptocurrency innovation. A day earlier, Trump revealed his intention to appoint Atkins, a respected figure in Washington policy circles, to lead the SEC.
The dual appointments have drawn mixed reactions. While crypto executives hailed the announcements as a signal of a pro-innovation administration, some policy analysts expressed concerns about potential overlaps and conflicts in policy execution.
“One big question is whether the policy will be driven by Sacks himself,” noted Ian Katz, managing director of Capital Alpha Partners, in an email to Reuters. “A czar appointed by Trump is going to want to see changes fairly quickly, but the SEC has processes, and you can’t just snap your fingers at the SEC and have new rules. Personalities will be important.”
Sacks, a Silicon Valley venture capitalist and close ally of Trump supporter Elon Musk, was an early investor in bitcoin. In a 2017 interview with CNBC, he described cryptocurrencies as transformative for the internet, though he acknowledged risks posed by bad actors within the industry. However, a Reuters review of Sacks’ background revealed he has limited experience in policy-making or regulatory leadership.
Atkins, in contrast, is a seasoned policy veteran and former SEC official with a track record of advocating for crypto innovation to enhance competition in financial services. Through his consultancy, Patomak Global Partners, Atkins has guided crypto firms in navigating regulatory hurdles.
“Atkins is kind of a known quantity,” observed Lene Powell, senior legal analyst at financial consultancy Wolters Kluwer. Sacks, however, hails from “a different sphere,” Powell added, highlighting the divergent backgrounds of the two appointees.
Both Sacks and Atkins have championed more accommodative regulatory frameworks for crypto firms. However, they have yet to articulate clear positions on the industry’s most pressing issue: determining whether crypto tokens should be classified as securities, commodities, or utilities—a decision that will significantly shape the sector’s regulatory future.
“I think we’ll see more constructive regulation. Obviously, that includes some clarification around what is (a) security or not,” said Chen Arad, co-founder of Solidus Labs, a crypto compliance firm.
The market responded positively to the news of Atkins’ nomination, with bitcoin surpassing the $100,000 milestone for the first time. Investors interpreted the move as a sign of potentially softer crypto policies under the incoming Trump administration.
Under President Biden, the SEC pursued aggressive enforcement actions against numerous crypto companies, alleging violations of securities laws. Meanwhile, banking regulators discouraged financial institutions from engaging with the crypto sector, and Congress failed to enact legislation to promote mainstream adoption.
As Trump’s administration takes shape, the crypto world remains watchful, eager to see whether these new appointments will bring clarity—or further complexity—to the regulatory environment.
