Ripple, Circle, Kraken Show Interest as Trump Moves to Form Crypto Advisory Council

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As a seasoned crypto investor with a decade of experience navigating the volatile digital asset landscape, I find this news about Trump forming a cryptocurrency advisory council intriguing and potentially beneficial for the industry. Having witnessed the rollercoaster ride that is crypto regulation, I believe it’s prudent to have voices from within the sector at the table when shaping policy.

According to Reuters, various industry experts are planning to shape the upcoming changes in U.S. cryptocurrency regulations.

At a Bitcoin conference held in Nashville during July, Trump unveiled his intentions to establish a fresh advisory body for his administration’s pro-cryptocurrency agenda. The team responsible for transition is currently considering the council’s format, personnel, and choosing which companies will be part of it. This move has generated considerable curiosity among key figures in the digital currency market.

multiple prominent American cryptocurrency companies are eager to join important decision-making groups. Firm Paradigm and Andreessen Horowitz’s cryptocurrency division, a16z, are among those competing for a place at the table. David Bailey, CEO of Bitcoin Magazine, mentioned this fact.

The details are still being worked on, but I expect key figures from U.S.-based Bitcoin and cryptocurrency companies to participate in the discussion. Many are excited to share their insights and suggestions.

Coinbase and Circle Eye Crypto Advisory Council

Although Kraken and a16z declined to discuss their possible participation, Coinbase’s CEO Brian Armstrong has confirmed recent meetings with Trump, as reported by the Wall Street Journal. The details of their conversation remain undisclosed, but it highlights Coinbase’s eagerness to join the council. Furthermore, Jeremy Allaire, Circle’s CEO, has publicly expressed his intention to become a part of the council in an interview with the New York Times.

The proposed Cryptocurrency Advisory Council is expected to function under, or potentially within a distinct White House framework, overseen by the National Economic Council. This body will primarily offer guidance on digital asset policy, work with Congress on cryptocurrency legislation, and supervise the creation of the promised bitcoin reserve as pledged by Trump.

Crypto Council to Coordinate with SEC, CFTC, Treasury

As a researcher delving into the realm of cryptocurrencies, I can share that high-ranking officials have communicated their intentions to orchestrate collaborative actions among several regulatory bodies. These include the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Treasury Department. The proposed council is expected to be composed of enforcement authorities and seasoned policymakers, aiming for a comprehensive strategy in regulating and shaping the future landscape of cryptocurrencies.

Additionally to the advisory council, Trump’s transition group is contemplating creating a position known as a “crypto leader.” This individual would presumably preside over the council, providing authoritative advice and supervision. At present, they are assessing potential candidates for this role, as Bloomberg has reported. Previously, Heath Tarbert, former head of the Commodity Futures Trading Commission (CFTC), Circle’s chief legal officer, and Brian Quintenz, former Republican CFTC commissioner now serving as head of policy at a16z crypto, have been consulted by the transition team on cryptocurrency policy, according to Reuters.

Trump gained support and financial contributions from the cryptocurrency sector by portraying himself as a “Crypto Advocate” determined to halt regulatory measures under President Joe Biden aimed at crypto businesses alleged of breaching securities and anti-money laundering regulations. Key figures in the industry are urging for executive orders that ensure crypto companies can access banking services, halt enforcement actions, and implement pro-industry reforms.

Concerns Over Crypto Industry’s Regulatory Influence

However, not all responses have been positive. Some consumer groups have raised concerns about the crypto industry having the authority to shape its own regulations. As sources have mentioned, ethical considerations may also delay the appointment of personnel to the council. Despite these concerns, involving industry experts in critical policy decisions is a sensible approach. 

According to Nathan McCauley, CEO of Anchorage Digital, it is indeed a smart decision to assemble a council composed of individuals who not only grasp the intricacies of how the industry should be governed, but also know how to position it as a valuable strategic resource.

For the first time, a presidential advisory council focused exclusively on cryptocurrencies will be formed. This sector came into being following the creation of Bitcoin in 2009, making it relatively new compared to other areas. In contrast, President Biden established several councils, including one for Science and Technology, through an executive order within his first month in office.

Kristin Smith, the CEO of the Blockchain Association, pointed out that establishing a cryptocurrency advisory body could be something Donald Trump could swiftly accomplish, emphasizing the administration’s dedication towards incorporating digital currencies within their economic system.

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2024-11-23 14:12