Trump’s Crypto Deregulation Plans: Gensler Fired, Atkins Nominated
With just seven days remaining before Donald Trump assumes the US presidency, the cryptocurrency industry has been closely monitoring his choices for staff and policy announcements. Since shifting his stance from characterizing Bitcoin as a “scam” in 2021 to expressing support for the technology during his 2024 campaign, Trump has made several promises related to digital assets that could significantly impact regulation and enforcement. Despite the uncertainty regarding the extent to which he intends to fulfill these promises, several developments have already occurred in the regulatory landscape prior to his inauguration.
Firing Gary Gensler “on day one”
At the Bitcoin 2024 conference in July, Trump pledged to remove Gary Gensler as Chair of the Securities and Exchange Commission (SEC) on his first day in office, January 20th. Many speculated that Gensler would likely resign ahead of any Trump presidency, despite the SEC chair’s term ending in June 2026.
On November 22nd, roughly two weeks after the US presidential election, Gensler announced his resignation, effective on the day of Trump’s inauguration, paving the way for the Senate to confirm a new SEC chair. The president-elect possesses the authority to appoint an acting head of the regulatory body until the Senate can formally confirm a permanent replacement for Gensler.
On December 4th, Trump announced his intention to nominate former SEC Commissioner Paul Atkins to serve as chair of the commission in 2025. Whoever heads the SEC will have the discretion to shape regulatory policies on digital assets as securities and related enforcement actions — a concern voiced by cryptocurrency users who criticized Gensler’s approach.
Different direction at financial regulators starting in 2025?
Beyond making general promises to shift the SEC’s position from “slandering” the crypto industry and “blocking” ordinary Americans from transferring money to exchanges, it’s unclear precisely what Trump might have planned for the commission in his second term.
If confirmed as SEC chair, Atkins would have the flexibility to chart his own course. Trump could exert political pressure through public statements or other means if he disagreed with a commission decision.
Some members of the 119th Congress have expressed support for the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), legislation that would clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC) over digital assets. However, even without this bill, reports suggest that Trump intends to install a CFTC chair who supports crypto regulation that is favorable to the industry.
Trump-Vance Transition Website
The Trump-Vance transition website did not mention the SEC or CFTC in its policies at the time of publication.
Bitcoin and Crypto Presidential Advisory Council
At Bitcoin 2024, Trump also stated his intention to establish a council focused on issues related to digital assets: “Their task will be to design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days. We will have regulations, but from now, on the rules will be written by people who love your industry, not hate your industry.”
As of January 13th, former PayPal Chief Operating Officer David Sacks was named to lead the council, designated as the “crypto and AI czar,” and former House Republican candidate Bo Hines was appointed as the executive director.
Trump stated that Hines and Sacks would work to “foster innovation and growth in the digital assets space while ensuring industry leaders have the resources they need to succeed,” but had not provided further details on the council’s activities or whether it may include favorable regulations.
Blocking CBDC Development at the Federal Reserve
“The creation of a central bank digital currency is over,” said Trump at the Bitcoin 2024 conference. “There will never be a CBDC while I’m president of the United States.”
The US Federal Reserve has been exploring the development of a digital dollar for years, including a CBDC as one of its “key duties” in March 2024, according to Representative Tom Emmer. To date, the central bank has not suggested a timeline for potentially releasing a digital dollar, but many US lawmakers and political candidates came out against CBDCs in their 2024 campaigns.
While a US president does have the authority to appoint and likely fire a Fed chair, their power is somewhat limited in influencing policy at the central bank. Trump could make public statements putting political pressure on the Fed to make certain decisions and even potentially remove a chair with whom he disagreed, but not necessarily order it to raise or lower interest rates. During his first term, Trump appointed Jerome Powell to serve as Fed chair. Though the president-elect has criticized interest rates for being too high, he publicly said he would not try to fire Powell, allowing the Fed chair to serve at least until the end of his term in May 2026.
The path forward remains uncertain, but the cryptocurrency industry is keenly observing the approaching changes and their potential impact.
