Jay Clayton, former chairman of the U.S. Securities and Exchange Commission (SEC), said on Wednesday that cryptocurrency legislation is likely to emerge under President-elect Donald Trump’s administration. Speaking to securities lawyers in New York, Clayton expressed optimism about advancing crypto regulation stating:
I think we will see crypto legislation. I think it becomes much easier to have crypto legislation if you’re tackling some of these problems that can be tackled at the executive and the administrative level.
Considered a possible appointee in a potential second Trump administration, Clayton is rumored to be a candidate for attorney general. However, he has not confirmed any plans, saying only that he would accept a role if he believed he could be effective. “If asked for a role where I could be effective, I’ll say yes,” he said.
Clayton sharply contrasted his views with those of the Biden administration, which has been firm in its regulatory stance on cryptocurrency, opting for enforcement rather than industry-sought regulations. He argued that Trump’s approach could ease regulatory constraints, particularly for businesses looking to enter public markets. The former SEC head also referenced recent Supreme Court decisions that limit executive authority, suggesting these rulings should prompt regulators to reassess existing litigation and regulations. He added that these developments might “encourage regulators to review existing litigation and regulations to see if they remain ‘viable.’”
President-elect Trump has pledged to implement pro-crypto policies, including the removal of SEC Chair Gary Gensler, to foster a more favorable regulatory environment for digital assets. During his campaign, Trump criticized Gensler’s stringent regulatory approach and vowed to appoint a crypto-friendly successor. This commitment has been well-received within the cryptocurrency community, with industry leaders expressing optimism about the potential for reduced regulatory hurdles and increased innovation. Additionally, Trump’s administration is expected to explore the establishment of a U.S. strategic Bitcoin reserve and the creation of a crypto advisory council to further integrate digital currencies into the national financial framework.