Cryptocurrency firm executives are hopeful about the possibility of comprehensive federal regulations for the industry being enacted this year, now that Donald Trump, a supporter of bitcoin, has returned to the White House. The CEOs of Coinbase, Binance, and Circle expressed to CNBC that they now see a clearer path towards establishing concrete rules for digital assets, unlike the previous U.S. administration, which took aggressive enforcement actions against several major crypto companies.
Brian Armstrong of Coinbase mentioned that he perceives the crypto industry entering a “new day” under a Trump-led U.S. administration. He highlighted the challenges faced during the previous administration, where the lack of regulatory clarity was used against both good and bad actors in the industry.
Coinbase, the largest crypto trading platform in the U.S., positions itself as a regulated alternative to offshore exchanges like Binance. The U.S. Securities and Exchange Commission recently announced the formation of a “crypto task force” aimed at developing a clear regulatory framework for crypto assets.
Armstrong emphasized that the industry’s primary focus is on passing legislation in the U.S. to provide regulatory clarity. Richard Teng of Binance expects progress in areas such as token issuance, trading, and asset management through crypto-specific legislation in the U.S., which he believes will support bitcoin and other digital assets.
Jeremy Allaire of Circle suggested that central banks holding reserves in assets like bitcoin could lead to a return to commodity-backed money. He noted the importance of addressing the debt issues faced by many governments worldwide. Allaire also highlighted the support for technology and regulation from senators and representatives in the U.S., emphasizing the potential for rapid progress in rule-making and policy development under the new administration.
Circle’s CEO anticipates advancements in legislation concerning stablecoins, digital tokens pegged to real-world assets, with bipartisan support in Congress. The Clarity for Payment Stablecoins Act, aimed at regulating stablecoin issuers, is one of the bills being considered by Congress.
