Cryptocurrency sector competes for seats on Trump’s proposed council

A variety of cryptocurrency companies, including Ripple, Kraken, and Circle, are vying for positions on the crypto advisory council promised by President-elect Donald Trump. This council is part of Trump’s intention to reform U.S. cryptocurrency policy. The administration plans to define the structure and membership of this council, as indicated by industry executives.

During his campaign at a July bitcoin conference in Nashville, Trump announced the creation of this advisory council, aiming for a pro-crypto approach to governance. Industry insiders report excitement among major U.S. crypto companies eager to contribute to discussions concerning policy formulation. Among those interested in council positions are venture firm Paradigm and the crypto arm of venture capital titan Andreessen Horowitz, a16z.

David Bailey, CEO of Bitcoin Magazine and organizer of Trump’s appearance at the Nashville event, told sources that he expects leading executives from prominent bitcoin and cryptocurrency firms to be included in the council. He emphasized the willingness of industry leaders to provide guidance on cryptocurrency regulations.

While spokespeople from Kraken and a16z have declined comments on the matter, it has been reported that Coinbase CEO Brian Armstrong recently met with Trump, potentially discussing the council’s formation, indicating Coinbase’s interest in participating. Circle CEO Jeremy Allaire has expressed his desire to join the council as well, according to a company spokesperson.

Trump’s transition team, not responding to requests for comments, is contemplating the introduction of a “crypto tsar” who would lead the advisory council. Reports suggest that candidates for this role are currently under review. Notably, former Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert, who is now chief legal officer at Circle, and former Republican CFTC Commissioner Brian Quintenz, now with a16z crypto, are advising the transition team on crypto-related policy matters.

The announcement of a pro-crypto Trump administration has positively influenced bitcoin prices, helping it reach new highs and approaching the milestone of $100,000. Throughout his campaign, Trump sought backing and donations from the crypto sector, pledging to assume the role of a “crypto president” and to roll back President Joe Biden’s strict regulatory measures against crypto businesses accused of non-compliance with financial laws.

The crypto industry is advocating for executive orders that would secure banking services for crypto companies, halt regulatory enforcement actions, and implement other essential reforms. However, consumer advocacy groups have cautioned against allowing the industry to establish its own regulations, and concerns over ethics may delay the appointment of council members. Still, many industry leaders argue that having knowledgeable professionals involved in policy decisions is crucial.

Nathan McCauley, CEO of crypto platform Anchorage Digital, endorsed the idea of forming a council comprising experts to effectively balance regulatory needs and optimize the industry’s potential as a strategic asset.

While advisory councils are not a new phenomenon, the establishment of a dedicated crypto council is unprecedented, given that cryptocurrencies emerged only after bitcoin’s 2009 launch. President Biden, on the other hand, has multiple advisory councils, including one focusing on Science and Technology, created shortly after taking office.

Kristin Smith, leader of the Blockchain Association, noted that Trump could swiftly establish the crypto council. This council would likely operate under the National Economic Council at the White House, coordinating economic policies, or through another administrative body. It is expected to provide guidance on digital asset legislation, work with Congress on crypto laws, manage Trump’s proposed bitcoin reserve, and facilitate collaboration among the Securities and Exchange Commission, Commodity Futures Trading Commission, Treasury, and potentially involve enforcement agencies as well.