Trump’s Election Victory Fuels Push for Crypto-Friendly SEC Reforms
In the wake of Donald Trump’s recent election win, calls for a significant overhaul of the United States Securities and Exchange Commission (SEC) have intensified, particularly from figures within the cryptocurrency industry.
Advocates are urging a shift towards a more innovation-friendly regulatory environment, emphasizing open dialogue over aggressive enforcement.
SEC’s Regulatory Approach Under Scrutiny
Paul Grewal, chief legal officer at Coinbase, has been vocal about the need for the SEC to reconsider its current enforcement-heavy approach. He expressed hope that Trump’s administration would foster a regulatory framework that encourages innovation and clearer guidelines for the crypto sector. This comes as speculation mounts regarding the potential removal of SEC Chair Gary Gensler, whom Trump has criticized for leading what he termed an “anti-crypto crusade” during the Biden administration.
Under Gensler’s leadership, the SEC has taken legal action against major crypto players like Coinbase and Uniswap, creating an atmosphere of uncertainty for companies navigating the regulatory landscape. Industry insiders believe that a change in leadership could pave the way for clearer rulemaking and more supportive regulations.
Among those speculated to succeed Gensler is Hester Peirce, an SEC commissioner known for her pro-crypto stance. Often referred to as “Crypto Mom,” Peirce advocates for a regulatory approach that balances innovation with public interest, potentially positioning her as a favorable option for crypto proponents.
Lummis’ Vision for a National Bitcoin Reserve
In addition to calls for an SEC overhaul, Wyoming Senator Cynthia Lummis has reiterated her commitment to establishing a national Bitcoin reserve. Following the election, she expressed intentions to move forward with her plan to acquire 1 million BTC—approximately 5% of Bitcoin’s total supply—if Republicans secure a Senate majority in 2025. Lummis’s proposal aligns with Trump’s previous suggestions regarding government-held Bitcoin assets.
The recent election results have sparked optimism in the crypto market, with Bitcoin prices briefly surpassing $76,000. Analysts suggest that the Democratic party’s stance on cryptocurrency may have contributed to its losses in key Senate races, highlighting a growing divide in political support for digital assets.
Global Regulatory Developments
While discussions about U.S. regulation heat up, international developments continue to unfold. The Cyprus Securities and Exchange Commission (CySEC) recently extended its suspension of FTX’s European operations until May 2025 amid ongoing concerns about management practices and client asset protection. This follows FTX’s tumultuous history and ongoing legal challenges since its bankruptcy filing in 2022.
Simultaneously, Binance has faced scrutiny over allegations of demanding token allocations from projects seeking listings on its platform. Co-founder Yi He publicly denied these claims, asserting that Binance maintains a transparent policy regarding listing fees.
As the crypto landscape evolves alongside political shifts, industry leaders remain hopeful that a new regulatory framework could foster innovation and stability in an increasingly complex market.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
