President-elect Donald Trump has changed his mind about his choice for a new Treasury Secretary, which could significantly impact US digital asset policy, The New York Times reports.
1. Internal conflict among pro-crypto candidates
Previously, the two leading candidates for the position of Treasury Secretary, Scott Bessent and Howard Lutnick, were both strong supporters of cryptocurrencies:
• Scott Bessent: Has supported the idea of establishing a federal Bitcoin strategic reserve.
• Howard Lutnick: A believer in Bitcoin; his firm Cantor Fitzgerald manages assets for the stablecoin Tether.
However, the personal conflict between the two candidates, especially Lutnick's strong campaign for the appointment, irritated Trump, causing him to consider other candidates.
2. Less crypto-friendly alternatives
Trump is currently considering two new candidates:
• Kevin Warsh: Former Federal Reserve Governor, supports the development of a US central bank digital currency (CBDC). However, the crypto community is concerned that CBDC will affect privacy.
• Marc Rowan: A Wall Street investor who has expressed skepticism about the role of digital assets in the US economy.
3. Potential impact on crypto
If Bessent or Lutnick are elected, they will likely push for crypto-friendly policies, including reversing harsh Biden-era regulations. However, if Warsh or Rowan takes the job, the stance on digital assets could become more restrictive, especially for stablecoin projects and transaction privacy.
Conclude
Trump’s shift in direction in choosing Treasury Secretary could shape the future of the crypto industry in the US. Who he appoints will be a key factor in determining how the industry develops or is regulated in the coming period.
