Several prominent cryptocurrency companies, including Ripple, Kraken, and Circle, are reportedly vying for positions on the crypto advisory council promised by President-elect Donald Trump. According to industry executives, these companies seek to influence the overhaul of U.S. policy regarding digital assets.
During a July bitcoin conference in Nashville, Trump pledged to establish the council as part of his administration’s crypto-friendly stance. His transition team is currently discussing the council’s structure, staffing, and the companies that will be included.
Former U.S. President Donald Trump gestures at the Bitcoin 2024 event in Nashville, Tennessee.
Leading U.S. crypto firms are eager to be represented on the council. Sources indicate that venture firm Paradigm is seeking a spot, and Andreessen Horowitz’s crypto arm, a16z, is also expected to be involved.
“It’s being fleshed out, but I anticipate the leading executives from America’s bitcoin and crypto firms to be represented,” said David Bailey, CEO of Bitcoin Magazine, who facilitated Trump’s conference appearance and has discussed bitcoin policy with the President-elect. “People are eager to advise and give input,” Bailey added.
A spokesperson for Kraken and a representative from a16z declined to comment.
Coinbase CEO Brian Armstrong recently met with Trump, according to a source familiar with the situation, confirming a report in the Wall Street Journal. The nature of their discussion remains unclear. Coinbase, the largest U.S. crypto exchange, is also interested in joining the council.
Circle CEO Jeremy Allaire has expressed his desire to be on the council, as confirmed by a company spokesperson. The crypto council is likely to fall under the purview of the White House’s National Economic Council or a separate White House entity.
This council is expected to advise on digital asset policy, collaborate with Congress on crypto legislation, establish a bitcoin reserve as promised by Trump, and coordinate efforts between agencies such as the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Treasury. The council may also include enforcement representatives and former policymakers, according to sources.
Trump’s transition team is currently vetting candidates for a potential crypto “tsar” role, which would likely head the council. Bloomberg reported on Wednesday that the team is vetting candidates for that role.
Former CFTC Chair Heath Tarbert, now chief legal officer at Circle, and former Republican CFTC commissioner Brian Quintenz, head of policy for a16z crypto, have been advising the Trump transition team on crypto policy, according to previous Reuters reporting.
The prospect of a crypto-friendly Trump administration has contributed to bitcoin’s rise to record highs, nearing the $100,000 milestone.
Trump has actively courted support and campaign donations from the crypto sector, promising to be a “crypto president” and to end the Biden administration’s regulatory crackdown on crypto companies accused of violating securities and anti-money laundering laws.
The industry is advocating for executive orders ensuring crypto companies’ access to banking services, an end to enforcement actions, and other policy changes.
While some consumer groups have expressed concerns that the crypto industry should not be able to write its own rules, several sources suggest ethical considerations could influence personnel appointments. However, others believe that industry experts should have a significant role in critical policy decisions.
“It’s absolutely the wise choice to put together a council of people who… understand how both the industry ought to be regulated and how to situate the industry to be a strategic asset,” stated Nathan McCauley, CEO of crypto platform Anchorage Digital, who has urged the Trump team to reverse the current stance on crypto.
While presidential advisory councils are not a novel concept, a dedicated advisory council for cryptocurrencies is unprecedented, considering that bitcoin’s launch only occurred in 2009. The Biden administration also uses multiple councils, including one on Science and Technology established by executive order.
