FX168 Financial News Agency (North America) reported on Saturday (September 28) 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.
Gary Gensler, the chairman of the SEC in the Biden administration, is often seen as an obstacle to cryptocurrency innovation, so many in the field hope for a policy shift. But Caitlin Long, CEO of Custodia Bank, doesn't necessarily believe that changing the president alone will solve the problems that many people hope for.
"In his first term, Treasury Secretary [Steve] Mnuchin was very opposed to cryptocurrency," Long explained in a recent Coinage interview. She emphasized the importance of appointments such as the Secretary of the Treasury in shaping the regulatory landscape for cryptocurrencies. "It's important who Trump appoints as Secretary of the Treasury because that will dominate decision-making. Many policies are made by the Treasury Department because the Treasury has the IRS, OCC, and FinCEN."
According to Long, Trump’s rumored pick for JPMorgan Chase CEO Jamie Dimon has raised some skepticism. “What do you think Jamie Dimon will do? Will he help any small startups? No. He likes big banks,” Long noted, highlighting a possible disconnect between the hopes of crypto enthusiasts and the realities of traditional finance.
Trump’s potential cabinet picks shed light on 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, there’s Cantor Fitzgerald CEO Howard Lutnick, who became a major player in the crypto space due to his firm’s involvement in custodial custody of Tether’s billions of dollars in treasury assets. On the other side, there’s former Congresswoman Tulsi Gabbard. Long noted that it’s encouraging to see both figures in office, but their approaches are in stark contrast.
“They’re both pro-crypto, which is great. One is really committed to decentralization. The other is the CEO of a major [broker-dealer] Wall Street firm.”
The broader concern, Long believes, is that while Trump’s rhetoric sounds pro-crypto, the details of who he appoints and how they craft regulation will outweigh any pro-crypto voices. Certainly, President Trump raised a lot of eyebrows when he pledged 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 hand of traditional financial players at the expense of smaller, more innovative projects?
For Long, the answer depends on one thing: who makes the decisions.
