The Trump administration is reportedly consulting with industry leaders and vetting candidates. This role is expected to serve as a bridge between the president, Congress, and federal agencies such as the SEC and CFTC. Trump's election has boosted optimism in the cryptocurrency market, but former House Speaker Paul Ryan recently pointed out the need for bipartisan cooperation to fully advance cryptocurrency reforms. The retirement of FDIC Chairman Martin Gruenberg also paves the way for Trump to reshape financial oversight and restore banking relationships that are critical to the cryptocurrency sector.
The Trump administration plans a specific White House stance on cryptocurrency.
According to a Bloomberg report on November 20, President-elect Donald Trump is said to be considering the establishment of a new position at the White House, which will be dedicated to cryptocurrency policy. This role would be the first dedicated cryptocurrency position at the White House and demonstrate that the upcoming Trump administration may place much more importance on cryptocurrency. Trump's team is consulting with industry leaders to assess the necessity of this position and is in the process of vetting candidates.
The responsibilities of this role may include managing a small staff and serving as a liaison between the president, Congress, and federal regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). While it is still unclear whether this position will be a White House staff role or a broader 'cryptocurrency czar' overseeing policy across multiple agencies, industry supporters are pushing for this position to report directly to Trump.
Some executives, including Coinbase CEO Brian Armstrong and former Coinbase official Brian Brooks, reportedly met with Trump on November 19 to discuss industry priorities. The transition team is also considering current and former CFTC officials for key regulatory positions.
Summer Mersinger, a Republican CFTC commissioner known for advocating a more hands-off regulatory approach to cryptocurrency, is a candidate for the chairmanship of this financial regulatory agency. Mersinger has previously criticized CFTC enforcement actions against cryptocurrency companies, describing them as 'regulation by enforcement.'
Trump has received significant support from cryptocurrency advocates by committing to position the U.S. as the 'cryptocurrency capital of the world' and promising to end regulatory crackdowns on the industry. His administration's approach has impacted the market, as shares of cryptocurrency exchange Coinbase surpassed $300 in November for the first time since 2021 following Trump's election victory.
Analysts believe this price increase is due to optimism about a reduction in regulatory pressure under a Trump-led administration. This could specifically apply to Coinbase's staking activities, which have faced significant scrutiny from the SEC.
Trump also appointed Howard Lutnick, CEO of Cantor Fitzgerald and a long-time cryptocurrency supporter, as Secretary of Commerce.
Trump's push for cryptocurrency needs bipartisan support.
Former House Speaker Paul Ryan spoke at the North American Blockchain Summit in Texas on November 20, where he discussed the challenges the upcoming Donald Trump administration will face and the broader political context. He was interviewed by former White House Security Advisor Faryar Shirzad.
Ryan particularly emphasized the importance of bipartisan cooperation in advancing critical legislation, especially regarding cryptocurrency policy, despite the Republican Party controlling the executive branch, the Senate, and the House.
Ryan is optimistic about Trump's election victory and calls it one of the most impressive political battles in U.S. history. He even urged his colleagues to support the administration. Despite personal disagreements with Trump, Ryan wants to see Trump's administration succeed and believes Trump's victory will benefit the nation as a whole.
On the other hand, he warned that a slim Republican majority in Congress could actually hinder progress on some key legislative goals, including cryptocurrency reform. He specifically pointed out the importance of securing 60 votes in the House to pass legislation and also stressed that bipartisan efforts will be essential to actually enact meaningful policy changes.
Ryan pointed out the possibility of incorporating cryptocurrency policy into the Farm Bill as a practical example of bipartisan cooperation and sees it as a manageable starting point for advancing legislation. He also praised those appointed by Trump to the cabinet for their alignment with Web3, cryptocurrency, and stablecoin initiatives.
However, Ryan advised against further weakening the House majority by appointing members to the cabinet, warning that filling vacant seats may be delayed depending on the political moves of each state. Republican-led states may act more quickly to fill vacancies, while Democratic-led states may deliberately delay the process to complicate the Republican agenda.
The discussion also mentioned appointing Representative Matt Gaetz as U.S. Attorney General, which has raised some controversy due to an ongoing ethics investigation. After Gaetz left Congress, Republicans pushed to conceal the findings of the ethics investigation. Representative Marjorie Taylor Greene has considered and suggested that if the ethics reports are made public, all gates must be disclosed.
Ryan concluded his speech by acknowledging the challenges the Republican Party faces in expanding its majority and effectively passing legislation. While remaining optimistic about the potential for progress, Ryan still believes that bipartisan cooperation will be critical for the Trump administration to achieve its goals in the cryptocurrency space.
FDIC Chairman Martin Gruenberg will retire.
Martin Gruenberg is the chairman of the Federal Deposit Insurance Corporation (FDIC) and a key figure in the so-called 'Chokepoint 2.0 Campaign.' However, he has announced his retirement effective January 19, just one day before Donald Trump's presidential inauguration. Gruenberg has informed FDIC staff and outgoing President Joe Biden of his decision, according to a Reuters report on November 20.
Republican Congressman Tom Emmer criticized Gruenberg on social media, accusing him of directing the Chokepoint 2.0 Campaign and overseeing a toxic work environment at the FDIC. Emmer's comments also referenced a congressional hearing in May, where Gruenberg testified about findings of sexual harassment, assault, and mistreatment under his leadership.
Operation Chokepoint 2.0 is a term coined by Castle Island Ventures partner Nic Carter. This term describes an initiative believed to pressure banks to sever ties with cryptocurrency businesses. There are also rumors that this campaign contributed to the collapse of cryptocurrency-friendly banks like Silvergate and Signature Bank in March 2023, leaving exchanges like Binance without reliable local banking partners.
Nic Carter also stated that Silvergate Bank could have survived if not for the alleged regulatory pressure to limit cryptocurrency deposits to 15%. According to Carter, this restriction was enforced with threats of severe consequences that could undermine the bank's stability. The role of cryptocurrency-friendly banks in the industry is crucial as they provide essential services such as accepting deposits, customer support, and processing payments.
Gruenberg's departure will mark the end of his tenure at the FDIC starting in 2005, during which he served as chairman or acting chairman intermittently. His departure paves the way for the upcoming Trump administration to appoint a new FDIC leader, which could signal a change in the regulatory tone going forward. Many industry supporters view this change as an opportunity to rebuild banking relationships and stabilize the industry after years of regulatory pressure.
