President-elect Donald Trump is preparing to reshape the U.S. government’s approach to cryptocurrency, with plans to adopt a more permissive stance toward the industry. Trump is focusing on appointing a roster of crypto-friendly individuals to lead key federal financial agencies, with his top advisers engaging closely with cryptocurrency executives to explore potential changes to federal policy.
Trump’s objective is clear: fulfil his campaign promise to make the United States the “crypto capital of the planet.” This declaration has resonated with crypto enthusiasts but has caused concern among consumer watchdogs. The policy shift has already impacted the markets, sending the price of Bitcoin soaring to nearly $89,000 by Monday evening.
Crypto Advocates for Federal Leadership Roles
The Trump administration’s early discussions have revolved around appointments to key financial regulatory agencies, including the Securities and Exchange Commission (SEC). According to sources familiar with the matter, these discussions have considered a mix of current regulators, former federal officials, and executives from the financial industry—all with a pro-crypto outlook.
For the SEC and other key posts, the names under consideration include Daniel Gallagher, a former SEC official currently working at Robinhood, which offers cryptocurrency services; Hester Peirce and Mark Uyeda, two Republican commissioners at the SEC; and Paul Atkins, a former SEC commissioner who served during Trump’s last transition. Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission (CFTC), is also being eyed for a role.
The SEC’s Role in Crypto Regulation
Under the new administration, the heads of the SEC and other financial regulatory bodies will play a crucial role in determining whether cryptocurrency will become a larger, more formalized part of the American financial system. The potential impact of these appointments is immense, with wide-ranging implications for the global economy. These roles carry significant weight, particularly given the vulnerabilities that were exposed by the 2022 collapse of the crypto exchange FTX, which raised the spectre of a broader financial contagion.
One of the prominent names on Trump’s list is Daniel Gallagher, who has previously criticized the SEC for taking a “scorched earth” approach to regulating cryptocurrencies. Hester Peirce, often known as “Crypto Mom” for her pro-crypto views, is seen as a potential interim chair of the SEC once Trump assumes office. Peirce has been a vocal critic of the current regulatory framework and has pushed for policies that would provide more clarity and support for the burgeoning crypto industry.
Mark Uyeda and Hester Peirce: Advocates for Change
Mark Uyeda has echoed similar sentiments, arguing that the SEC’s actions under the Biden administration have stifled innovation. “The commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm,” Uyeda said recently in an interview with Fox Business. He emphasized that the American people have sent a clear message by reelecting Trump: “Starting in 2025, the SEC’s role is to carry out that mandate.”
Peirce is also expected to lead a federal task force on crypto policy once Trump takes over the White House. Crypto advocates believe that Peirce could provide much-needed regulatory guidance and stability to an industry that has struggled under inconsistent enforcement and vague rules.
Targeting Gary Gensler’s SEC Leadership
The new SEC leadership will likely replace its current chairman, Gary Gensler, whom Trump has vowed to “fire.” Speaking at a major Bitcoin conference this summer, Trump criticized Gensler’s aggressive crackdown on crypto companies, including fraud charges against FTX and allegations against Binance over its business practices. Under Gensler’s leadership, the SEC has also clashed in court with crypto exchanges such as Coinbase, Kraken, and Ripple, accusing them of failing to comply with federal registration requirements.
“His days are numbered,” said Brad Garlinghouse, CEO of Ripple, who noted that Ripple has already been in contact with the Trump transition team. “I think it’s clear this is an area they intend to continue to focus on. Trump and a bunch of people realize there’s a new set of technologies that are likely to define the next couple of decades.”
While crypto supporters are optimistic that Gensler’s successor will reverse some of the regulatory actions currently in place, there remains uncertainty about whether Trump can directly remove Gensler from his position. Gensler’s role as SEC chairman is Senate-confirmed, and a full dismissal could lead to a complex legal battle. Some sources have indicated that demoting Gensler to commissioner might be the more feasible option.
Gensler himself has not publicly stated whether he plans to step down after the new administration takes over, though it is common for top SEC officials to depart during such transitions. A spokeswoman for Gensler declined to comment on his future.
Trump’s Push for a Crypto-Friendly Mandate
The incoming administration sees its crypto plans as fulfilling a broader economic mandate. “The American people reelected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail,” said Karoline Leavitt, a spokeswoman for the Trump transition. “He will deliver.”
The early signs point to a significant change in how Washington approaches cryptocurrency regulation, underscoring the rapid ascent of the industry into the upper echelons of American political influence. The crypto sector has supported dozens of congressional candidates who share their vision of a more lenient regulatory approach, while also contributing heavily to Trump’s successful presidential campaign.
Industry’s Call for Regulatory Clarity
While industry executives have welcomed Trump’s move toward pro-crypto regulation, what they mostly seek is clarity—something they argue has been missing from the current regulatory framework. Despite the explosive growth of digital assets, Congress has yet to pass a comprehensive law governing cryptocurrencies and related services. Such legislation would help establish when a digital asset is classified as a security or a currency, what investor protections apply, and which agency is responsible for oversight.
“A lot of industry, I think a lot of companies, say they want to be regulated when their objective is actually anything but,” said Paul Grewal, chief legal officer for Coinbase. “With crypto, the situation is different: there is specific legislation in Congress right now that we believe would protect investors, and frankly, resolve some of the ambiguities.”
Implications for the Future of Crypto
The decisions that Trump’s administration makes in the coming months could have a profound impact on the future of the cryptocurrency industry in the United States. The people he appoint to lead agencies like the SEC will determine whether digital assets can fully integrate into the financial system or continue to operate on its periphery. A more permissive regulatory approach could lead to greater adoption of crypto technologies and further integration into mainstream financial services.
However, Trump’s embrace of the crypto industry has also raised concerns among consumer protection advocates, who worry about the risks associated with digital assets. The collapse of FTX and the instability it caused serve as stark reminders of the need for careful oversight and the potential dangers of a poorly regulated crypto market.
Ultimately, the trajectory of U.S. cryptocurrency policy will depend on the balance that the new administration strikes between fostering innovation and protecting investors. With Trump’s sights set on making the U.S. the “crypto capital of the planet,” the industry is hopeful that a more supportive regulatory environment will emerge—but the details of how this vision will be realized remain to be seen.
A New Era for Crypto in the U.S.?
As President-elect Trump prepares to take office, the cryptocurrency industry is watching closely. The choices made in the coming months regarding key regulatory roles and policy directions will have far-reaching consequences for the future of digital assets in the United States. The industry’s growing political influence, combined with Trump’s commitment to a more lenient regulatory approach, has set the stage for a potential transformation of the U.S. into a global leader in crypto innovation.
But with high stakes come high risks, and as the world saw with the downfall of FTX, the journey ahead will need to be carefully navigated to avoid catastrophic pitfalls. The question remains: Can the U.S. truly become the “crypto capital of the planet” while ensuring the stability and security of its financial system? For now, the industry waits, and the world watches.