U.S. President-elect Donald Trump’s crypto policy is taking shape with the announcement of a White House crypto czar and a new securities watchdog. However, questions remain over who will drive policy and whether too many cooks could slow down changes.
Crypto executives are cheering the news, saying it will end the Biden administration’s crypto crackdown and promote innovation. However, some Washington analysts are flagging potential policy clashes and ambiguity over who will drive crypto policy.
Trump has appointed Michael Sacks, a Silicon Valley venture capitalist and friend of Elon Musk, as the new crypto czar. The role is expected to guide crypto policy and work on a legal framework for the industry. Sacks lacks experience in writing or leading policy, but his appointment has been welcomed by some industry leaders.
Sacks’ appointment has raised concerns over who will drive policy and whether it will lead to more regulatory clarity. “Personalities will be important,” said Ian Katz, managing director of Capital Alpha Partners. “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.”
The new securities watchdog is Gary Atkins, a former SEC official who has said he supports crypto innovation as a way to boost financial services competition. However, neither Sacks nor Atkins have taken a clear stance on how crypto tokens should be classified.
Industry leaders are calling for more constructive regulation and clarification around what constitutes a security or commodity. “I think we’ll see more constructive regulation,” said Chen Arad, co-founder of Solidus Labs. The industry is pushing for an ambitious raft of policies that would promote mainstream crypto adoption.
Critics are warning that the Trump administration’s crypto agenda might create gaps in regulation that could leave investors at risk. However, some supporters believe it will help the United States maintain its position as a leader in financial services.
The new crypto czar and securities watchdog will need to coordinate with other regulatory agencies, including the SEC and the Commodity Futures Trading Commission, which has yet to appoint a new chair. Lawyers say that coordination will be crucial, but also potentially chaotic. “It definitely would be a lot of cooks,” said Lene Powell, senior legal analyst at financial consultancy Wolters Kluwer.
As the Trump administration’s crypto agenda takes shape, industry leaders and regulators are watching closely to see how it will impact the future of the cryptocurrency market.
Source: https://www.reuters.com/world/us/trumps-crypto-team-takes-shape-questions-remain-over-who-will-drive-policy-2024-12-06