The cryptocurrency industry is optimistic about President Trump’s term, seeking clearer regulations amid supportive sentiments during the Consensus conference in Toronto. Expert opinions suggest Trump’s presidency could enhance relationships with regulators after a period of scrutiny under Biden. Eric Trump’s involvement in the crypto sector raises ethical discussions, while Congress deliberates on two key cryptocurrency bills, one of which is stalled due to political tensions.
As President Donald Trump’s term commences, the crypto industry is buzzing with excitement, particularly during the Consensus conference held in Toronto. Industry experts expressed eager anticipation for regulatory clarity from a Republican-controlled Congress, hoping for a supportive turnaround after a more skeptical previous administration. Lewis Cohen, a digital assets lawyer, declared the first three months under Trump as encouraging.
The conference, which is notable for being the longest-running of its kind, will see Eric Trump taking the stage soon, stirring conversations about potential conflicts of interest given his business connections in crypto. Eric Trump is not just a name; he’s the co-founder of American Bitcoin and involved in family-backed endeavors like World Liberty Financial, alongside the $TRUMP meme coin. The resulting value surge of these currencies indicates the potential leverage of his name in the market.
US crypto investors played a significant role in Trump’s campaign, pouring considerable funds into his election with the hope of transforming the regulatory landscape unfavorably viewed under previous leadership. This lingering sentiment against President Biden remains evident at the conference, as industry insiders openly express their disdain. Regulatory expert Annemarie Tierney remarked that Trump’s presidency could serve as an opportunity to mend relationships with the government.
Under Biden, there have been tightened restrictions on banks managing cryptocurrencies, compounded by aggressive enforcement actions led by Gary Gensler, the former SEC chair. However, Tierney pointed out that Trump’s more favourable SEC chair, Paul Atkins, has dropped some of the prior enforcement actions against large platforms such as Coinbase and Kraken, which she described as unprecedented.
The critics of cryptocurrency, however, voice concerns about its speculative nature, citing risks that could lead to substantial financial fallout if the market turns. Opponents argue that crypto lacks real-world utility. Yet there are strong advocates in the industry who see it as a revolutionary financial tool that could shift power away from traditional banking. The fear is that increased regulation could allow large financial institutions to overshadow grassroots success stories.
Connor Spelliscy of the Decentralisation Research Centre argues for prompt regulatory clarity. “Rules of the road” are essential, especially with a potential shift in Congress, where Democrats are perceived as more unfriendly towards crypto. He emphasised the urgency to outline industry guidelines before control possibly swings to a less crypto-friendly party.
Amidst this climate, Congress is looking at two significant cryptocurrency bills. The first relates to stablecoins pegged to the dollar, deemed less contentious yet currently stalled due to Democrats’ anger over Trump’s investments in the sector. The latter, which proposes a regulatory structure for the entire cryptocurrency marketplace, is far more complex and fraught with challenges. “It’s crucial this administration documents these regulations clearly,” Tierney urged, underscoring the need for a robust regulatory framework.
