What difference can an election make? For years, the crypto industry has floundered in the political wilderness of the Biden era, with many companies considering pulling out of the U.S. altogether. Now, fresh off a campaign season that saw crypto leaders spend more than $100 million, the industry is welcomed into the highest corridors of power in Washington, DC.
This new influence was revealed in a phone call this week between President-elect Donald Trump and Coinbase founder and CEO Brian Armstrong. Armstrong and his company have poured nearly $50 million into supporting pro-crypto candidates, whose ranks now include Trump, a one-time bitcoin skeptic who converted to the digital currency entirely earlier this year. was done
In recent months, Trump has floated ideas like a crypto advisory council and a strategic reserve for bitcoin. He also counts a number of longtime crypto boosters in his inner circle, including Elon Musk and Howard Lutnick, CEO of Cantor Fitzgerald, whose firm helps manage stablecoin giant Tether’s reserves and who on Tuesday told Commerce was elected as Secretary.
A person familiar with the call, who spoke on condition of anonymity, said Armstrong and Trump did not discuss specific appointments but instead talked about crypto broadly. Coinbase declined to comment on the call. gave The Wall Street Journal reported on Monday that the two will meet.
There are also unconfirmed reports on X that another prominent crypto CEO, Ripple’s Brad Garlinghouse, has direct access to the president-elect. A Ripple spokesperson said good luck The company does not discuss private communications.
According to a person familiar with the Trump Armstrong call, as well as a leading crypto figure in Washington, D.C., the industry’s main focus right now is who will be appointed to lead two key financial agencies: the Securities and Exchange Commission and Commodities. and the Exchange Futures Commission.
“The SEC is where all the damage is being done,” said the Washington, D.C. figure, referring to a wave of lawsuits initiated by Chairman Gary Gensler. While Gensler is expected to be gone by the end of the year, the person said it is uncertain whether the agency will immediately drop numerous cases that are not related to fraud. He added that an interim chair would be less likely to take this step.
Meanwhile, the CFTC could play a much broader role in the crypto realm if legislation strips the SEC of some of its declared authority over digital assets and instead hands it over to a commodities regulator. The front-runners to become the CFTC’s next leader are two crypto industry favorites: Summer Mercinger, who is the current commissioner, and Millbank attorney Josh Sterling, who has regularly pursued cases before the industry.
One final role the crypto industry is watching closely: who has been selected to be the Treasury Department’s undersecretary for terrorism and financial intelligence, a position that oversees regulations related to money laundering and illicit banking. helps
