President-elect Donald Trump is considering creating the first dedicated White House position on cryptocurrency policy, marking a strategic move to position the US as the "cryptocurrency capital of the world".
According to Bloomberg on November 20, Trump's transition team is actively discussing the establishment of a new position at the White House, entirely focused on cryptocurrency policy. This unprecedented move reflects the growing importance of this field in the global fintech landscape.
The emergence of a "cryptocurrency czar" at the White House is not only a strong political statement by the new administration, but also a positive signal for the cryptocurrency community. This is expected to drive development and innovation in the field, as well as shape a clearer legal framework for the cryptocurrency market in the US.
According to Bloomberg's sources, the transition team is vetting potential candidates, including meetings at Trump's Mar-a-Lago resort. The prospective candidates include leaders from the cryptocurrency industry, to ensure the selected individual has the necessary knowledge and experience to guide the nation's cryptocurrency policy.
Impact on Cryptocurrency Policy
The appointment of a cryptocurrency czar signals a significant shift in the US government's approach to this field. In the past, regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have often taken a cautious and sometimes rigid stance towards cryptocurrencies.
However, with Trump's commitment to making the US the "cryptocurrency capital of the world", the cryptocurrency community expects a more open and favorable legal environment. The cryptocurrency czar will play a crucial role in bridging the gap between the President, Congress, and federal agencies, ensuring close coordination in policy development and implementation.
This position is also expected to help resolve the disagreements and conflicts between various regulatory bodies. The lack of clarity in the legal framework has created significant challenges for businesses operating in the cryptocurrency space. The cryptocurrency czar will be tasked with coordinating and harmonizing the regulations, creating a level and transparent playing field for all participants.
Trump's meeting with top cryptocurrency executives, including Coinbase CEO Brian Armstrong and former Coinbase executive Brian Brooks on November 19, further reinforces the rumors of an impending shift in cryptocurrency policy. Additionally, Trump's appointment of Howard Lutnick, the CEO of Cantor Fitzgerald and a long-time cryptocurrency supporter, as the Secretary of Commerce is seen as a positive signal.
The impact of these actions has been clearly reflected in the market. Shares of the cryptocurrency exchange Coinbase have surged above $300 in November, the first time since 2021, following Trump's victory.
According to Michale Miller, a stock researcher at Morningstar, Coinbase is considered one of the biggest beneficiaries of the election outcome, as the company has been facing legal pressure from the SEC. Under the new administration, Coinbase's operations are expected to face less legal pressure, opening up opportunities for stronger growth.
