Crypto industry pushes for policy sea change after Trump victory
Trump's victory paves way for crypto policy overhaul
Industry seeks crypto-friendly SEC chair and banking access
Trump has pledged to create a crypto advisory council
Bitcoin soars amid policy optimism, could hit $100,000
Coinbase, others spent more than $119 mln backing pro-crypto congressional candidates
By Hannah Lang
Nov 14 (Reuters) -The crypto industry is pushing for an ambitious raft of policies that would promote the widespread adoption of digital assets and considering who best to promote them, as they anticipate a cryptocurrency-friendly regime under President-elect Donald Trump.
While crypto companies were already anticipating a lighter touch with a new administration, Donald Trump's decisive victory and a projected Republican sweep of Congress pave the way for a dramatic and lasting crypto policy overhaul. Trump courted crypto cash with promises to be a "crypto president," and industry executives say he now has a strong mandate to deliver.
The industry is now pushing for measures including potential executive orders on crypto firms' access to banking services and crypto-friendly picks in a range of roles, in addition to a new Securities and Exchange Commission (SEC) chair, executives said.
"We've had an administration that's been very negative, and so we're looking forward to unlocking that gridlock," said Mike Belshe, CEO of institutional crypto platform BitGo, who hosted a campaign fundraiser for Trump in July. "I think the voters of America said very clearly that they want to see that."
Bitcoin soared above $90,000 on Wednesday amid rising policy optimism, with some analysts predicting the world's largest token could hit $100,000.
While some industry asks could happen quickly such as pro-crypto nominees at financial regulatory agencies, others however could take longer, such as passing legislation to create a regulatory framework for digital assets.
Trump has also pledged to create a crypto advisory council. While it's unclear who might serve on the council, crypto executives are brainstorming who to elevate as key leaders in crafting crypto policy in the new administration.
"Everybody in Washington is asking and thinking about ... who's going to lead these agencies," said Kara Calvert, head of U.S. policy at Coinbase COIN.O. "It's important I think for companies like Coinbase, but also for all the smaller startups... to have a point of view."
Jonathan Jachym, global head of policy at crypto exchange Kraken, said the industry was considering who would be suitable for leadership positions to drive policy.
"Before the election, investors were already betting on options that the price of bitcoin would exceed $80k or even $100k, and the value of these bets has risen," Grzegorz Drozdz, analyst at Conotoxia wrote, adding the election outcome was mostly driving those bets.
Under the Biden administration, the SEC and Treasury cracked down on crypto companies for allegedly violating securities and anti-money laundering laws, while bank regulators discouraged lenders from dabbling in crypto, and Congress has failed to pass legislation that would help promote mainstream crypto adoption.
With Republicans running Washington, all that could change.
The crypto industry expects Trump to make good on his July promise to establish a strategic U.S. bitcoin reserve - one of his more ambitious pledges executives said they now see as a real possibility. "It legitimizes the asset class more," said Marshall Beard, Chief Operating Officer of Gemini, the crypto exchange whose founders, the Winklevoss twins, donated to Trump.
The industry also expects Trump's bank regulators to take a softer stance on crypto. Many crypto firms have struggled to find banking partners amid scrutiny from regulators worried about the risks, especially following the collapse of crypto-friendly U.S. lenders last year.
Jachym said there had been "negative pressure" from bank regulators on crypto relationships, which could change if lawmakers created a new crypto framework.
Trump in July promised he would not let banks "choke" crypto companies out of the traditional financial system, and some executives speculated the president-elect could even address the issue with an executive order.
"Something like that from the White House could go a long way towards fixing the problem," said Kristin Smith, chief executive of the Blockchain Association, a crypto trade group.
Earlier in the campaign, crypto firms had hoped Trump's new SEC chair would create a waiver regime for crypto companies, but firms are now discussing pushing for faster "no-action" letters that the agency could immediately use to allow crypto companies to operate without fear of reprisal, one executive said.
Smith added the industry is also preparing a fresh push for crypto-friendly laws. With Republicans expected to take the House, they could expedite spending bills with a simple majority vote - a process called "reconciliation" which often allows smaller items to piggy-back on must-pass spending bills. That could be "a pathway for getting something done," said Smith.
Coinbase COIN.O and other cryptocurrency companies spent more than $119 million backing pro-crypto congressional candidates, many of whom won their races, including Ohio Republican Bernie Moreno. He took a key Senate seat from Democratic crypto skeptic Sherrod Brown, paving the way for other potentially sweeping legislation, said executives.
Calvert said the 2025 Congress will be "the most pro-crypto Congress in history."
Bitcoin is on the verge of $90,000 https://reut.rs/3Z1HfAX
Reporting by Hannah Lang in New York; additional reporting by Stephanie Kelly in New York; editing by Michelle Price, Megan Davies and Nick Zieminski
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
