As we step into the new year, the world of cryptocurrency is thriving, with all signs pointing towards a positive future. From Washington, D.C., to Silicon Valley, cryptocurrency is riding the wave of uncertainty as the new administration takes shape.
With the president-elect being pro-crypto and key administrative positions being filled with like-minded individuals, the outlook for digital assets is bright. The Securities and Exchange Commission is set to have a new chairperson who supports cryptocurrency, along with the appointment of a new AI and crypto czar.
While the new administration is creating a favorable environment for cryptocurrency, it is also a new frontier for the industry as it navigates uncharted territory. Finding a balance in working with regulators to navigate the complexities of digital assets and governmental oversight is crucial for the industry’s future.
Cryptocurrency Gains Traction in Washington
Jennifer Schulp, director of financial regulation studies at the Cato Institute, describes cryptocurrency’s current moment as a ‘Welcome to Washington’ experience:
“In some ways, it shows that the industry could have been rightly criticized for not understanding how D.C. works. They’re getting better at it, except they’re showing everyone in real-time.”
~Jennifer Schulp
The election of Donald Trump in November was a win for the cryptocurrency community, with over $130 million invested in campaign funding. Following his victory, President-elect Trump considered crypto advocates for key positions in his administration, such as Howard Lutnick from Cantor Fitzgerald LP for Commerce Secretary and Paul Atkins for the SEC.
As the year came to a close, there was a rush for positions in the Trump administration. Kris Marszalek, CEO of Crypto.com, hinted at a possible role with a post of him and Trump at Mar-a-Lago. His caption, “Honored to have a seat at the table,” was followed by a phone conversation between Coinbase Inc. CEO Brian Armstrong and President-elect Trump.
Uncertainty Surrounds Washington’s Policy Direction
The selection process for strategic positions in the administration remains unclear, with surprises like the nomination of venture capitalist David Sacks as the artificial intelligence and crypto czar. Even those well-versed in Beltway gossip were caught off guard by this nomination.
Kristin Smith, CEO of the Blockchain Association, also learned of the nomination through social media, highlighting the unexpected nature of the decision-making process in Washington.
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