Tech News Briefing: Crypto’s Future Under Trump
Welcome to Tech News Briefing, your source for the latest in the tech world. On this episode, we explore how a second Trump administration might reshape the tech landscape, with a particular focus on cryptocurrency.
The crypto community is hopeful about a potential shift in the regulatory environment. WSJ Heard on the Street writer and co-host of WSJ’s Take On the Week, Telis Demos, joins us to discuss the potential impact of Trump’s policies.
Belle Lin: Telis, the tech community is optimistic. What can you tell us about Trump’s stance on crypto?
Telis Demos: Trump has his own meme coin, and his administration signed an executive order signaling a potential change of course. The order directs the government to halt work on a US digital currency and to help companies in the industry get bank accounts. It also sets up a working group focused on stablecoins and the crypto market structure.
Belle Lin: The former SEC chair, Gary Gensler, took a hard line on the cryptocurrency sector. What changes could we see with a new agency head?
Telis Demos: The agency could potentially drop or cease arguments in the ongoing lawsuits against crypto companies. Also, the agency may change how it defines securities. Coinbase’s CEO has suggested that the SEC could allow coins to be listed and then removed if they are flagged as problematic.
Banks are considering entering the crypto sphere if it is legitimized. Banks are carefully assessing crypto deposits and whether those deposits are likely to stay. Crypto is also competitive for banks because if stablecoins become the best place to keep money, it hurts the banks’ ability to collect deposits. If limitations on crypto companies are removed, banks might see potential losses in business. From a Wall Street investment banking point of view, more crypto companies going public is good for bankers. If banks had certainty over which coins they could trade, they could be expected to do so at their trading desks.
Belle Lin: What are the potential pros and cons of deregulating the crypto sector?
Telis Demos: Critics fear that deregulation exposes investors to risky assets. However, for investors in crypto companies, less regulation could reduce risk. But, if everyone is presented with new meme coins, the risk of picking a bad one goes up.
Belle Lin: Where does President Trump fall on the debate dividing the crypto world?
Telis Demos: There are two views. On one hand are those focused on financial inclusion and removing government control. The other sees crypto as the future of financial services. Finding the balance between these two views will inform the course of policy and what is acceptable to the Republican Party.
Join us next time for another episode of Tech News Briefing.
