The cryptocurrency industry has experienced a dramatic shift under President Donald Trump’s administration, with key appointments and executive actions creating a more favorable regulatory environment. Coinbase executives say the administration has been methodical and bipartisan in integrating crypto into the $100 trillion capital markets.
Key Regulatory Changes
The Office of the Comptroller of the Currency, under Jonathan Gould, has signaled support for issuing new bank charters to crypto firms. The Federal Deposit Insurance Corporation, led by interim chair Travis Hill, has moved to expose what industry insiders call ‘Choke Point 2.0,’ an alleged coordinated effort by previous regulators to pressure banks into severing ties with crypto.
Industry Reaction
Nic Carter, founding partner at Castle Island Ventures, expressed satisfaction with the administration’s crypto-focused appointments. ‘Every single appointment — I’m happy with from a crypto perspective,’ Carter said. The industry has welcomed the rollback of enforcement-heavy SEC tactics under previous chair Gary Gensler.
Challenges Remaining
Despite progress, the Federal Reserve remains a significant regulatory hurdle. Carter noted that while banks can now custody crypto thanks to the repeal of SAB 121, they still can’t work directly with crypto firms without Fed approval. The Fed has only partially rescinded its anti-crypto guidance from January 2023.
Future Prospects
Coinbase’s chief policy officer, Faryar Shirzad, praised the administration’s ambitious plans to integrate blockchain technology across broader financial systems, targeting not just the $3 trillion crypto market but the $100 trillion capital markets. The industry sees this as a significant opportunity for growth and innovation.
Industry Leaders’ Comments
- Coinbase CEO Brian Armstrong noted the administration has ‘really flipped the script on crypto’
- Ripple Chief Legal Officer Stu Alderoty said 73% of U.S. crypto holders want the country to become a global leader in the space
- Fred Thiel, CEO of MARA Holdings, praised support for mining technology
- Dan Lawrence, CEO of OBM, noted bitcoin’s potential in incentivizing new power infrastructure
The crypto industry continues to monitor these developments closely as the regulatory landscape evolves.
