On Saturday (September 28), financial website TheStreet reported that as the crypto industry prepares for the 2024 election, there is a growing view that former President Donald Trump’s victory could be good for Bitcoin and the broader digital asset sector.
With SEC Chairman Gary Gensler under the Biden administration often seen as an obstacle to cryptocurrency innovation, many in the space are hoping for a shift in policy. But Custodia Bank CEO Caitlin Long doesn’t necessarily believe a change of president in and of itself will solve the problems many are hoping for.
“In his first term, Treasury Secretary [Steve] Mnuchin was very anti-crypto,” Long explained in a recent Coinage interview. She stressed the importance of appointments like the Secretary of the Treasury in shaping the regulatory landscape for cryptocurrencies. “Who Trump appoints as Treasury Secretary is important because that’s going to drive the policymaking. A lot of policy is set by the Treasury Department because the Treasury has the IRS, the OCC, and FinCEN.”
According to Long, rumors of Trump’s pick for JPMorgan Chase CEO Jamie Dimon have raised some skepticism. “What do you think Jamie Dimon is going to do? Is he going to help any small startups? No. He likes big banks,” Long said, noting that this highlights a possible disconnect between the hopes of crypto enthusiasts and the realities of traditional finance.
Trump’s potential cabinet picks reveal a broader debate within the cryptocurrency community: the divide between Wall Street-driven cryptocurrency adoption and the philosophical underpinnings of decentralization. As Long put it, “There’s a real split in the Bitcoin crowd between the pro-Wall Street, ‘Wow, the numbers are up, we’re just here to trade,’ and the people who are philosophically committed to decentralization.”
Interestingly, Trump’s transition team has reflected this divide. On one side, you have Cantor Fitzgerald CEO Howard Lutnick, who has become a major player in the crypto space due to his firm’s involvement in custodial custody of billions of dollars in Tether’s treasury assets. On the other side, you have former Congresswoman Tulsi Gabbard. Long noted that it’s encouraging to see both figures take the stage, but their approaches are in stark contrast.
"They're both pro-cryptocurrency, which is great. One is really committed to decentralization. The other is the CEO of a major [broker-dealer] Wall Street firm."
Long believes the broader concern is that while Trump’s rhetoric may sound pro-crypto, the details of who he appoints and how they craft regulation will outweigh any pro-crypto voices. Of course, President Trump raised a lot of eyebrows when he promised at Bitcoin Nashville to make the U.S. “the crypto capital of the planet.”
As the crypto industry looks ahead to the 2024 election, the question remains: Will Trump’s return be the crypto panacea that many hope for, or will it simply strengthen the power of traditional financial players at the expense of smaller, more innovative projects?
For Long, the answer depends on one thing: who makes the decisions.
