A wave of major cryptocurrency firms, including Ripple, Kraken, and Circle, are actively seeking positions on President-elect Donald Trumpās anticipated crypto advisory council.
According toĀ Reuters, among several industry insiders, these companies aim to influence the forthcoming overhaul of U.S. cryptocurrency policies.
During a July Bitcoin conference in Nashville, Trump announced plans to form a new council for his administrationās crypto-friendly agenda. The transition team is currently deliberating on the councilās structure, staffing, and the selection of companies to be included. This initiative has sparked significant interest among top players in the digital asset sector.
Several leading U.S. crypto firms are eager to secure seats at the table. Venture firm Paradigm is among those vying for inclusion, while Andreessen Horowitzās crypto division, a16z, is also expected to secure a position. David Bailey, the CEO of Bitcoin Magazine, stated:Ā
āItās being fleshed out, but I anticipate the leading executives from Americaās bitcoin and crypto firms to be represented [ā¦] People are eager to advise and give input.ā
Coinbase and Circle Eye Crypto Advisory Council
While Kraken and a16z declined to comment on their potential involvement, Coinbase CEO Brian Armstrong recently met with Trump, confirming a report by the Wall Street Journal. The specifics of their discussion remain unclear, but it underscores Coinbaseās interest in joining the council. Additionally, Jeremy Allaire, CEO of Circle, expressed his desire to be part of the council in an interview with the New York Times.
The proposed crypto advisory council will likely operate under the White Houseās National Economic Council, responsible for coordinating and implementing the Presidentās economic policies. Alternatively, according to sources familiar with the matter, it may be established within a separate White House framework. The councilās primary role will be to advise on digital asset policy, collaborate with Congress on crypto legislation, and oversee the establishment of Trumpās promised bitcoin reserve.
Crypto Council to Coordinate with SEC, CFTC, Treasury
Executives have stated the council will coordinate efforts across multiple agencies, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Treasury Department. Potential council members will include enforcement officials and former policymakers, aiming for a thorough approach to cryptocurrency regulation and strategy.
Alongside the advisory council, Trumpās transition team is considering establishing a crypto ātsarā role. He would likely lead the council, offering expert guidance and oversight. The team is currently evaluating candidates for the role, as Bloomberg reported. Former CFTC Chair Heath Tarbert, Circleās chief legal officer, and former Republican CFTC commissioner Brian Quintenz, now head of policy at a16z crypto, have advised the transition team on crypto policy, according to Reuters.
Trump secured backing and campaign contributions from the crypto industry by positioning himself as a ācrypto presidentā committed to halting regulatory actions under President Joe Biden targeting crypto firms accused of violating securities and anti-money laundering laws. Industry leaders are advocating for executive orders that guarantee crypto companiesā access to banking, stop enforcement actions, and implement other industry-friendly reforms.
Concerns Over Crypto Industryās 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.Ā
āItās absolutely the wise choice to put together a council of people whoā¦ understand how both the industry ought to be regulated and how to situate the industry to be a strategic asset,ā said Nathan McCauley, CEO of crypto platform Anchorage Digital.
Presidential advisory councils are a longstanding tradition, but this would be the first dedicated specifically to cryptocurrencies, a sector that has only existed since Bitcoinās inception in 2009. In contrast, President Biden established multiple councils, including one on Science and Technology, through an executive order during his first month in office.Ā
Kristin Smith, CEO of the Blockchain Association, noted that setting up the crypto council is something Trump ācould do very quickly,ā highlighting the administrationās commitment to integrating cryptocurrency into its economic framework.
