The 2024 U.S. presidential election has recently concluded, with Trump, who previously expressed support for cryptocurrencies, successfully elected as the 47th President of the United States. The industry generally expects Trump to adopt a 'smart regulation' stance and establish a regulatory framework for cryptocurrencies in the U.S., attracting crypto startups and industry professionals to return.
Commissioner Caroline Pham from the Commodity Futures Trading Commission (CFTC) and Circle's Chief Strategy Officer Dante Disparte shared their views at the Singapore FinTech Summit, believing that establishing regulatory direction for the cryptocurrency market and stablecoin legislation will be key for the U.S. crypto industry.
Cryptocurrency 'smart regulation', promoting a clear regulatory framework
Pham stated that after Trump's victory, the U.S. will place greater emphasis on 'smart regulation', which means the need to establish a 'clear regulatory direction' rather than relying solely on enforcement actions to constrain businesses. Many companies have been investigated due to unclear government registration requirements.
Pham further stated that in the future, the CFTC will establish more specific registration standards to protect consumers, related businesses, and market safety. She specifically mentioned that Trump's tariff policies could bring geopolitical risks, further driving demand for safe-haven assets like gold and Bitcoin, forming a debasement trade.
(U.S. CFTC Chairman: Cryptocurrency regulatory regulations are stagnant, fearing that finance may become an enforcement target)
CFTC 'Digital Asset Sandbox', six-month pilot program to promote market innovation
Pham revealed that the CFTC is about to launch a six-month 'Digital Asset Sandbox' pilot program, which will allow the market to meet regulatory standards during the innovation process. She stated that the pilot program includes regulations on registration, information transparency, financial resources, and market behavior, and the CFTC will also test 'tokenized collateral in the derivatives market' within the program.
Pham emphasized that this is not only the mission of the CFTC alone but also requires collaboration with the SEC. She suggested restarting the joint advisory committee between the two parties to explore regulatory boundaries across markets, similar to how they handled the collaboration on securities futures in the past.
CFTC Commissioner Caroline Pham at the Singapore Technology Summit: The political power of crypto cannot be underestimated; bipartisan support for stablecoin legislation is expected.
Regarding stablecoin legislation, Circle's Chief Strategy Officer Disparte stated that the cryptocurrency exerted significant political influence in this election, with about 52 million crypto voters across the U.S. who have been previously overlooked, but now this power can no longer be underestimated.
Disparte further stated that after Trump's election, stablecoin and market structure legislation is expected to advance with bipartisan support, helping to stabilize crypto regulations. Disparte emphasized that if the stablecoin bill can pass, it would not only strengthen the dollar's position in the global stablecoin market but also further promote Circle's development, which is preparing for an IPO.
(Circle still insists on IPO, optimistic about U.S. stablecoin legislation)
U.S. regulation lags behind other countries; Trump is expected to improve it and attract crypto talent to return.
Dante Disparte pointed out that the United States has long lagged behind other countries in cryptocurrency 'regulation', causing many American crypto startups and related activities to move to other regions such as Singapore and the European Union.
Disparte stated that Circle has currently obtained a payment institution license in Singapore and has become the first company to comply with the EU's MiCA regulations. Disparte believes that if the U.S. can establish a clear regulatory framework for cryptocurrencies by 2025, it will attract more startups back, thus consolidating the U.S.'s leadership position in the global crypto industry.
Disparte stated that previously, Trump promised to fire SEC Chairman Gary Gensler on the first day in office, and currently, the market has high expectations for U.S. regulatory reform, hoping that Trump will fulfill his promises and help the crypto industry develop robustly in the U.S.
Circle's strategy director Dante Disparte made the above remarks at the Singapore Technology Summit.
(Interpreting Trump's Bitcoin 2024 Speech | The Perfect Combination of Bitcoin and Political Language, Intersection of Pain Points in the Crypto Circle and American Glory)
This article 'Trump's Victory Drives New Opportunities for Crypto Regulation: CFTC Will Promote Digital Sandbox, Circle Focuses on Stablecoin Legislation' first appeared in Chain News ABMedia.
