US President-elect Donald Trump’s plans to shape cryptocurrency policy are generating excitement and uncertainty as he moves to appoint key figures to steer his administration’s approach to digital assets. However, concerns are emerging over potential clashes in policy direction due to overlapping responsibilities.
On Thursday, Trump confirmed his campaign promise to embrace cryptocurrency, naming David Sacks, a former PayPal executive and crypto advocate, as the “White House A.I. & Crypto Tsar.” This announcement followed Trump’s decision to nominate Paul Atkins, a pro-crypto Washington attorney, as the next head of the Securities and Exchange Commission (SEC).
The appointments have sparked optimism among cryptocurrency executives, who view them as a step toward reversing the Biden administration’s perceived hostility toward the sector. “This could signal a shift towards innovation and growth,” said one industry insider.
However, analysts warn of potential complications stemming from the newly created role of a “crypto tsar.” Ian Katz, managing director of Capital Alpha Partners, expressed concern over ambiguity in leadership. “A tsar appointed by Trump will want swift changes, but the SEC operates through formal processes that cannot be expedited by fiat,” Katz explained in an email to Reuters. “Personalities will be key in navigating this dynamic,” he added.
David Sacks, a Silicon Valley venture capitalist and early Bitcoin investor, has long championed cryptocurrencies as transformative. In a 2017 CNBC interview, he described them as revolutionary for the internet but cautioned about scams in the sector. Despite his enthusiasm, Sacks lacks direct experience in crafting or implementing policy.
Paul Atkins, by contrast, is a seasoned policy expert with a solid track record. A former SEC official, Atkins has been an advocate for crypto innovation as a means of enhancing financial competition. Through his consultancy, Patomak Global Partners, he has assisted crypto companies in navigating regulatory challenges. “Atkins is a familiar figure in Washington policy circles,” said Lene Powell, senior legal analyst at Wolters Kluwer, noting his measured approach.
Yet neither Sacks nor Atkins has articulated clear stances on key regulatory issues, such as whether crypto tokens should be classified as securities, commodities, or utilities—a decision critical to defining the industry’s regulatory framework.
The uncertainty hasn’t dampened market optimism. Bitcoin soared past the $100,000 mark for the first time following Trump’s announcement of Atkins as SEC chief, reflecting hopes for a more crypto-friendly administration.
Under President Joe Biden, the SEC pursued aggressive enforcement against crypto firms, accusing them of violating securities laws, while banking regulators discouraged crypto-related lending. Congress, meanwhile, failed to pass legislation fostering mainstream adoption of digital assets.
Trump’s broader crypto agenda includes establishing a regulatory framework to clarify when tokens are considered securities or commodities. However, lawyers warn that implementing such policies will require significant coordination between the SEC, the Commodity Futures Trading Commission (CFTC), and Congress.
“The creation of a clear legal framework will need extensive input from multiple agencies, and it’s unclear how the new administration will manage this complexity,” Powell remarked.
Consumer advocates have voiced concerns over potential gaps in investor protections under the new policies, though the crypto industry has largely dismissed these fears.
As Trump’s transition team remains tight-lipped on details of Sacks’ role, the crypto community is left wondering whether the President-elect’s ambitious vision will be slowed by too many players vying to shape the future of digital assets.
