The Crypto Influencers Set to Shape Trump's White House

As Donald Trump prepares to return to the White House, the crypto industry is abuzz with anticipation. Trump's past skepticism of digital currencies has given way to a newfound embrace, with the former president promising to make the U.S. the "crypto capital of the planet." With this shift in sentiment, several pro-crypto voices are poised to land key positions in Trump's administration, potentially reshaping the regulatory landscape for cryptocurrencies.

One prominent figure expected to join Trump's Cabinet is billionaire investor Scott Bessent, who was tapped to lead the Treasury Department. Bessent, the founder and CEO of hedge fund Key Square Group, is a known supporter of digital assets. Calling him the "perfect pick," Brad Garlinghouse, the CEO of crypto firm Ripple, believes Bessent will be the "most pro-innovation, pro-crypto Treasury Sec we've ever seen." Bessent's appointment signals a shift towards a more pro-crypto stance, which could bode well for the industry.



Trump's transition team is also reportedly considering the creation of a White House staff position focused specifically on cryptocurrency policy or a "crypto czar." This dedicated role would oversee policy and regulation, potentially bringing much-needed clarity to the crypto market. The sense of optimism among crypto investors is palpable, with the price of one bitcoin nearing $100,000 since Trump's election victory, rising more than 40 percent.



The crypto industry's embrace of Trump's victory was almost immediate, with Bitcoin spiking eight percent on the day after the election. This surge set off a days-long rally before it reached a record high of more than $98,700 last Friday. Other crypto-related companies, such as Coinbase Global and MicroStrategy, also saw their shares soar, reflecting the market's excitement about the potential regulatory shifts.

The expected departure of Securities and Exchange Commission (SEC) Chair Gary Gensler, coupled with Trump's pro-crypto Cabinet picks, is further fueling this excitement. The crypto industry repeatedly clashed with Gensler and the Biden administration over their crypto-critical approach. With Gensler's departure, speculation swirls over who will be named SEC chair after him. Names floated include former acting Comptroller of the Currency Brian Brooks, former SEC Chair Paul Atkins, and former SEC general counsel Robert Stebbins.



The crypto industry hopes that the new administration will bring "regulation by rulemaking" instead of "regulation by enforcement," as desired by the industry. This would provide a more concrete regulatory framework, addressing the unique aspects of this asset class and potentially boosting market confidence. Many in the industry are looking for a more supportive regulatory environment, with clearer rules that foster innovation and growth.

In conclusion, Trump's return to the White House could bring significant changes to the crypto landscape. With pro-crypto voices like Scott Bessent joining his Cabinet and the possibility of a dedicated "crypto czar" role, the industry is poised for a more favorable regulatory environment. As the crypto market continues to soar, investors and industry executives alike are eagerly awaiting the policy changes that could shape the future of cryptocurrencies in the U.S.