Financial regulators head for the exits ahead of Trump’s crypto-tinged presidency
Hasta la vista… Some of crypto’s top regulators are bidding adieu ahead of this month’s inauguration of pro-crypto President-elect Trump. On Monday, Fed Vice Chair Michael Barr said he was peacing out, and yesterday CFTC head Rostin Behnam announced plans to resign. Behnam had sought to lock in the CFTC’s role as bitcoin’s top regulator and give it oversight of crypto exchanges, while Barr had advocated for guardrails. Industry advocates called Barr’s exit a “huge win.”
Trend setter: Behnam and Barr are taking a page from SEC boss (and, to many, crypto-industry buzzkill) Gary Gensler, who said he’d step down this month.
Follow the leader: SEC Commissioner Jaime Lizárraga, who argued that lots of cryptocurrencies were likely securities, is also resigning.
Price party: Bitcoin climbed back past its $100K milestone on Monday, before giving up ground yesterday.
Big plans… As the old guard waves goodbye, a new class of crypto regulators that includes incoming crypto-friendly SEC Chair Paul Atkins is champing at the bit. Meantime, advocacy groups like the Coinbase- and Kraken-backed Stand with Crypto along with the Blockchain Association have policy wish lists ready to go. Near the top: stablecoin legislation, access to banking services, an executive order to create a bitcoin stockpile, regulatory clarity, and the creation of a crypto council. FYI: the industry spent $133M on last year’s US election.
Victory comes with risks… Crypto celebrated Trump’s reelection as a leap toward the mainstream-ization of digital assets. But it doesn’t mean everything in Crypto Land is suddenly peachy. With some of crypto’s top cops handing in their badges, analysts and regulators say the scandal-rocked industry (ahem, FTX) could run the risk of going off the rails again.