Former U.S. President Donald Trump made headlines during the launch event for his World Liberty Financial crypto platform, where he expressed his belief that U.S. crypto builders under investigation by the Securities and Exchange Commission (SEC) would face dire consequences if he is not re-elected for a second term this November.
During the event hosted by Decrypt’s sister company, Rug Radio, Trump criticized the SEC’s approach to crypto regulation under current Chair Gary Gensler, describing it as “incredibly hostile.” The regulator has been targeting prominent crypto exchanges such as Coinbase, Binance, Kraken, and even NFT marketplace OpenSea, signaling a crackdown on the industry.
Despite the SEC’s tough stance, there have been surprising developments in recent months. While the approval of Ethereum exchange-traded funds (ETFs) seemed unlikely, the agency gave the green light for such ETFs in May, following its approval of Bitcoin funds in January. This unexpected shift in regulatory approach raised speculation about the influence of Trump’s public support for cryptocurrency and his promises of more favorable regulation.
Trump himself suggested that his involvement in the crypto space may have led the Biden administration to ease off on enforcement actions, noting that “since they heard I was involved, they’ve treated people much better.” This perceived change in attitude from the administration has not gone unnoticed, with some industry leaders, including Mark Cuban, suggesting that it may be driven by political considerations.
As the election approaches, Trump’s Democratic rival, Kamala Harris, has yet to outline her stance on crypto regulation. However, there are indications that her team has shown interest in learning more about the industry, as evidenced by outreach to prominent figures within the crypto community.
Overall, the landscape of crypto regulation remains uncertain, with political dynamics and regulatory actions playing a significant role in shaping the future of the industry. Trump’s World Liberty Financial crypto platform represents a new player in this evolving space, promising to bring a fresh perspective to the intersection of finance and technology.