Crypto War Resolution: Here’s Who Trump Might Rely On To Bring Peace

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As a seasoned researcher with over two decades of experience in financial markets and regulation, I find myself intrigued by the potential appointments of Dan Gallagher or Paul Atkins to lead the SEC under President-Elect Trump’s administration. Given my extensive background in understanding regulatory dynamics, it seems plausible that these individuals could indeed bring a more favorable stance towards cryptocurrencies and blockchain technology.

As Donald Trump gears up to take office, the crypto community is keeping a close eye on his administration’s likely appointments for crucial financial regulatory roles. With his pledge to put an end to the “crypto war” that began under the Biden administration, it’s anticipated that Trump will instigate changes in leadership at the Securities and Exchange Commission (SEC) and other financial bodies.

Will Dan Gallagher Lead The “Peace With Crypto”?

As an analyst, I’m sharing some insights based on reports from Reuters. It appears that Donald Trump’s transition team is seriously considering Dan Gallagher, a former Republican SEC commissioner from 2011 to 2015 and the current Chief Legal and Compliance Officer at Robinhood Markets Inc., as a top contender for the position of SEC chair. This individual has garnered significant respect within the crypto executive community, who have generously contributed millions to Trump’s campaign.

Additionally, Paul Atkins, a previous Republican SEC commissioner who now leads Patomak Global Partners (a consulting firm), is being evaluated. During the 2016 transition period, he was part of President Trump’s team. Previously, he was considered for the position of SEC chairman. Robert Stebbins, a partner at Willkie Farr & Gallagher and a former SEC general counsel during Trump’s first term, is also being mentioned as a potential candidate for senior financial regulatory positions.

Trump’s chosen successor will start selecting individuals for his next term cabinet shortly. The identities of these appointments will be disclosed once they have been finalized,” as stated by Karoline Leavitt, Trump’s national press secretary to Reuters.

At present, Mark Uyeda, current SEC commissioner, has openly declared his backing for President Trump’s plan to ease regulations on cryptocurrencies. Uyeda, who joined the commission in 2022, is expected to assume the role of acting chair when Trump takes office in January, based on a report from FOX Business.

Uyeda told FOX Business that the Commission’s crackdown on cryptocurrencies should conclude, with exceptions being made only for enforcement actions not linked to fraud or harm, and where no registration has occurred. This stance is a reflection of the message sent by President Trump and the American public. From 2025 onwards, the SEC’s mission will be to adhere to this mandate.

Uyeda supports Trump’s pledge to curb the intense regulatory measures taken by SEC Chair Gary Gensler. Over the last three years, under Gensler’s supervision, the SEC has initiated more than a hundred enforcement actions against various companies, focusing on both deceptive practices and unauthorized securities offerings.

As an analyst, I’ve noticed that while certain cases, like the one involving Sam Bankman-Fried, founder of the defunct FTX exchange, clearly demonstrate instances of fraud and money laundering, other entities such as Coinbase, Ripple, Kraken, ConsenSys, and Cumberland DRW have found themselves under scrutiny for the alleged sale of unregistered securities.

According to Gensler’s stance, most cryptocurrencies other than Bitcoin fall under the regulatory purview of the Securities and Exchange Commission (SEC). This viewpoint has encountered substantial resistance from various sectors, including the industry, legal professionals, and government officials in Congress. With his term ending in 2026, Gensler has hinted that he will resign once the new administration assumes office.

Hester Peirce, a Republican SEC Commissioner who’s known for her pro-cryptocurrency stance and nicknamed “Crypto Mom,” was once considered a strong contender for the position of SEC chair. However, reports suggest that she doesn’t want this role. Instead, it appears that Peirce is more inclined towards heading an internal “crypto task force.” The goal of this task force would be to reassess the SEC’s strategies regarding digital assets and promote open discussions with key players in the cryptocurrency industry.

Peirce consistently supports “shelter clauses” enabling cryptocurrency firms to function under supervision, avoiding immediate legal actions from regulators at present. However, a representative from Peirce’s team refrained from discussing her future plans.

Uyeda has spoken out against the SEC’s current method of regulating cryptocurrencies, referring to it as a “catastrophe for the entire sector.” During an interview on FOX Business, he stated that there has been no effort made to offer clear guidance on these policies, instead relying on enforcement.

At press time, the total crypto market cap stood at $2,512 trillion.

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2024-11-08 20:12