With President Trump's inauguration just around the corner, Gary Gensler's plans to leave the SEC and the appointment of David Sachs as White House Crypto Czar promise a major shift in cryptocurrency policy. The crypto community has responded positively and is hopeful for an end to the SEC's heavy-handed regulation under Gensler. Questions arise about the effectiveness of Crypto Czar’s role and its impact on the speed and clarity of policy. Although there is some skepticism, the move is consistent with President Trump's pro-crypto stance and could mean a more favorable regulatory environment for cryptocurrencies.
Donald Trump has made big promises to the crypto community, and it appears he intends to keep most of them. It is too early to tell whether Bitcoin reserves will materialize, but for crypto enthusiasts, a dream has already come true. Gary Gensler will resign from the U.S. Securities and Exchange Commission (SEC) in January 2025.
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And now Trump has just given the crypto community a nice early Christmas present by announcing his position as White House Crypto Czar.
Crypto czar and pro-crypto SEC chief: Christmas came early
According to President Trump's statement, crypto evangelist David Sachs will become the first “White House AI and Crypto Czar.” This came just days after President Trump said pro-crypto lawyer Paul Atkins could become SEC chief following Gensler's resignation.
Most people in the community welcomed the move, as it likely marks an end to Gensler's crypto wars and “regulation by enforcement” strategy, which has led to numerous lawsuits against crypto companies. Some wonder if this role is really a good thing, or if the Crypto Czar's new job will actually cause more chaos.
Ian Katz, managing director at Capital Alpha Partners, told Reuters: “Personality matters,” and who actually drives policy.
One big question is whether this policy will be driven by Sachs himself. The Trump-appointed czar would want to see change fairly quickly, but the SEC has a process and cannot just snap its fingers and enact new rules at the SEC.
Ian Katz, Capital Alpha Partners
Some on Crypto Twitter are lamenting the newly created role. Perhaps the transition from war with cryptocurrencies to full-fledged love mode may be a little too soon for some.
Some commentators said the industry doesn't need a crypto czar. It should simply be left to its own devices.
Source:X
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And since Sachs seems to understand Bitcoin, there is some basis for that expectation. Sources say he's been a HODLer since at least the early days, buying it in 2013 for US$130 (about AU$203). I think there is hope.
