what happen?
When Donald Trump is re-elected as U.S. president, he is expected to aggressively appoint cryptocurrency-friendly officials to his cabinet and federal regulatory agencies, especially key financial regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). mechanism.
As the SEC has adopted a strict enforcement attitude towards the cryptocurrency industry in the past few years, the new leadership is expected to adjust regulatory policies and bring new vitality to the cryptocurrency industry.
After Trump was elected, the cryptocurrency market rose rapidly, especially Coinbase's stock price soared 20%, exceeding the $300 mark. Market analysts pointed out that this is a direct response to expectations of crypto industry-friendly policies.
Crypto-Friendly Candidates for New Commodity Futures Trading Commission Leadership
According to (Reuters) reports, the Trump team is considering appointing current Commodity Futures Trading Commission member Summer. Summer Mersinger is the new chairman.
As a Republican, Mersinger has been publicly advocating that the Commodity Futures Trading Commission should adopt a looser and more flexible approach to encryption regulation and avoid restricting industry development through law enforcement.
Merzinger served as Republican Senator John F. A senior assistant to John Thune, and became one of Trump's top candidates for nomination after the Republican Party takes control of the Senate in November 2024.
In addition to Merzinger, former Commodity Futures Trading Commission member Jill. Jill Sommers and Josh. Josh Sterling is also on the list of candidates.
What these candidates have in common is that they all advocate a regulatory model of "guidance instead of enforcement" and hope to provide clearer guidance for the decentralized finance (DeFi) field. Compare this to current Securities and Exchange Commission Chairman Gary. Despite Gary Gensler’s tough crypto policies, the Commodity Futures Trading Commission may take a more permissive stance in the future and become one of the main regulators of the crypto market.
Trump has not yet announced plans to replace Gensler, chairman of the U.S. Securities and Exchange Commission, but former Commodity Futures Trading Commission chairman Chris, nicknamed the "Father of Cryptocurrency" by netizens. Chris Giancarlo said on November 14 that he would not take over the position.
The leadership of the Securities and Exchange Commission may change significantly, looking forward to the encryption industry unwinding
Trump publicly stated during the campaign that he would remove Securities and Exchange Commission Chairman Gary Johnson on his first day in office. Gary Gensler.
Traditionally, the chairman of the Securities and Exchange Commission voluntarily resigns during a change of administration, and speculation about who will replace Gensler has intensified after Trump was elected.
According to market news, Jungsler was indeed removed from office, and current Securities and Exchange Commission member Hester. Hester Peirce is likely to be one of the candidates to replace him.
Pierce is known as the "Mother of Cryptocurrency" because she often makes remarks in support of the encryption industry. She advocates that the Securities and Exchange Commission should make room for innovation and avoid excessive enforcement from harming the technology industry.
Another possible candidate is current Securities and Exchange Commission member Mark Uyeda, who in October criticized Gensler's policies as "a disaster for the entire industry."
Regardless, if Pierce or another crypto-friendly official takes over the SEC, the long-running litigation between crypto companies and the SEC is likely to be resolved peacefully, or even dismissed, which would reduce corporate litigation expenses and boost market confidence. .
After all, since Gensler took office, the Securities and Exchange Commission has filed lawsuits against a number of crypto companies, including Ripple, Coinbase, and Consensys.
Ripple's Chief Legal Officer Stewart. Stuart Alderoty also pointed out that the Securities and Exchange Commission regarded digital currencies such as XRP as securities based on the "strict liability theory" and initiated litigation, costing Ripple hundreds of millions of dollars in litigation fees.
The crypto market reacted enthusiastically to Trump’s election, and ETF applications ushered in new hope
After Trump was elected, the cryptocurrency market rose rapidly, especially the exchange Coinbase's share price soared 20%, exceeding the $300 mark.
Market analysts pointed out that this is a direct response to expectations of crypto industry-friendly policies. According to Morningstar analysts, Coinbase has been facing challenges due to long-term regulatory pressure from the Securities and Exchange Commission, and Trump’s election has opened up new development space for it.
In addition, Trump’s election also enhances the possibility of more crypto ETFs being listed.
In 2024, several asset management companies submitted applications for spot ETFs containing different cryptoassets such as Solana, XRP, and Litecoin, and are awaiting review by the Securities and Exchange Commission.
These ETFs will provide U.S. investors with a quick and easy way to invest in crypto without having to open a wallet and purchase cryptocurrencies directly.
It is expected that if the new Securities and Exchange Commission leadership relaxes policies, these ETFs are likely to be approved for listing in the short term, injecting new financial vitality into the U.S. crypto market.
References: cointelegraph, cointelegraph, cointelegraph, cointelegraph
