President-elect Donald Trump is discussing the appointment of crypto-friendly personnel with Brian Armstrong, CEO of Coinbase. His social media company, Trump Media, is also in the process of negotiating to acquire Bakkt, a cryptocurrency exchange.
Bakkt's stock price has soared since these discussions, and Armstrong had previously proposed that Trump appoint "Crypto Mom" Hester Peirce as the new Chair of the SEC.
Trump, Bakkt, and Armstrong
Trump Media, the President-elect's media and technology company, is currently in negotiations to acquire Bakkt, a cryptocurrency exchange. Bakkt's role in the industry had reached a peak a few years ago and was then described as "a non-factor in the space." Earlier this year, they had publicly explored options for a sale or spin-off. However, since this proposal, their stock price has surged.
Bakkt stock value has spiked. Source: Google FinanceAlthough Donald Trump has pursued a series of crypto-friendly policies for U.S. agencies, these actions are within the framework of his political career. As a businessman, Trump has faced some obstacles since the unsuccessful presale of World Liberty Financial (WLFI). Acquiring Bakkt could provide Trump with a new opportunity in this game.
However, the world of cryptocurrency exchanges is also influencing his policy views. Specifically, Coinbase CEO and co-founder Brian Armstrong is also meeting with the President-elect today. Armstrong and Trump are said to be discussing personnel appointments for the upcoming administration.
As an industry insider, Armstrong has an interest in achieving favorable policy outcomes for cryptocurrencies. Throughout the election cycle, Coinbase has spent tens of millions of dollars supporting crypto-friendly candidates at various levels. Since Trump's victory, Armstrong has made numerous supportive comments, praising Elon Musk's D.O.G.E. and proposing Hester Peirce as the next SEC Chair:
"Hester Peirce would be the best choice. Smart, fair, professional. Can work with both sides,"
Armstrong stated.
"Crypto Mom" Hester Peirce is one of the five current SEC Commissioners, and is one of the two appointed by Trump. Gensler's impending replacement has sparked a flurry of speculation in the market about who will succeed him. If Armstrong does not change his mind from his initial proposal, these discussions could significantly increase Peirce's chances.
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