The incoming Trump administration is poised to drastically change the landscape of cryptocurrency regulation, with major tech and crypto leaders taking influential positions to shape policy.
What happened According to the Washington Post, the venture capitalist Marc Andreessen has emerged as a key figure in the transition, drawing on his Silicon Valley expertise to recruit candidates for crucial positions in Washington.
Andreessen, co-founder of Andreessen Horowitz, has been actively involved in interviewing and recommending candidates for various positions, including those related to cryptocurrency regulation.
His influence stems from a meeting with Trump last summer, where the president-elect’s message about the need to beat China in the technology race resonated with the venture capitalist.
Trump’s transition team has made cryptocurrency regulation a priority, with plans to address issues such as “de-banking” and controversial accounting policies on the first day of the presidency.
David Sacksappointed Secretary of AI and Cryptocurrencies by Trump, is working closely with industry leaders to finalize a legislative strategy.
“There has been an attempt in the bureaucratic swamp of Washington to curb innovation through tighter regulation and higher taxes,” said Brian Hughesspokesperson for the Trump-Vance transition.
He added that the administration aims to “develop a legal framework for the cryptocurrency industry to thrive in the United States.”
According to the report, Trump is expected to issue executive orders on the day of his presidency, possibly addressing issues of de-banking and fair value accounting, which requires banks holding cryptocurrencies to count them as liabilities on their balance sheets .
-Also read: Tether will transfer its headquarters to El Salvador
Why it matters The tech industry’s growing involvement in the transition reflects industry frustrations with the Biden administration’s approach to regulating cryptocurrencies.
Andreessen described Trump’s victory as “a relief” during a November podcast, indicating the industry’s hope for a more favorable regulatory environment.
This change aligns with recent expert opinions expressed at the Benzinga Future of Digital Assets Conference, where panelists highlighted the need for regulatory clarity to unlock institutional growth in the digital assets market.
Adam Guren of Hunting Hill Global Capital noted that regulatory uncertainty has been a major barrier to institutional adoption.
Ben Horowitz and Marc Andreessen have criticized the Biden administration’s cryptocurrency regulations, accusing regulators of undermining legitimate businesses while allowing questionable projects to flourish.
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