The Trump Era: A New Dawn for Crypto Regulation in the US, Led by the "Crypto Mom"

The Trump Era: A New Dawn for Crypto Regulation in the US, Led by the "Crypto Mom"On Tuesday, following President Trump's inauguration, the cryptocurrency world received a significant development: the U.S

The Trump Era: A New Dawn for Crypto Regulation in the US, Led by the "Crypto Mom"

On Tuesday, following President Trump's inauguration, the cryptocurrency world received a significant development: the U.S. Securities and Exchange Commission (SEC) announced the formation of a dedicated cryptocurrency task force aimed at establishing a comprehensive regulatory framework for the market. Leading this task force is Hester Peirce, affectionately known as the "Crypto Mom," a figure highly regarded within the cryptocurrency industry. This move signals a fundamental shift in the official U.S. stance on cryptocurrencies.

Prior to this, the SEC had generally adopted a stringent regulatory approach towards the crypto industry. Former Chairman Gary Gensler, a staunch crypto skeptic, aggressively advocated for strict oversight and initiated hundreds of lawsuits against crypto issuers and trading platforms. However, upon President Trump's assumption of office, this scenario dramatically changed. Trump demonstrated strong support for the crypto industry, leading to Gensler's subsequent resignation to avoid conflict with the President's position.

On Tuesday, the SEC, under Acting Chairman Mark Uyeda, officially announced the creation of the cryptocurrency task force, aiming to develop a "comprehensive and clear" regulatory framework for crypto assets. Hester Peirce, the task force's head, has consistently been the SEC commissioner most friendly to the cryptocurrency industry. Her advocacy for a more liberal and sensible regulatory model, opposing the SEC's harsh enforcement against crypto companies, earned her the title of "Crypto Mom."

During the Biden administration, the cryptocurrency industry faced intense scrutiny from the U.S. government amidst a series of high-profile fraud cases, such as the FTX exchange collapse. Over 100 enforcement actions were launched against the industry by federal agencies, including the SEC, in recent years, and stringent bank regulations hampered crypto companies' ability to collaborate with traditional financial institutions.

However, the SEC's Tuesday announcement showcases a fundamental shift in the commission's approach to cryptocurrency regulation under the Trump administration. The statement emphasized: "This work will require time, patience, and hard work. It will only succeed with significant input from investors, industry participants, academics, and other stakeholders. We look forward to working collaboratively with the public to create a regulatory environment that protects investors, fosters capital formation, promotes market integrity, and supports innovation."

Importantly, the task force will coordinate with Congress and other federal departments and agencies, including the Commodity Futures Trading Commission (CFTC). For years, the SEC and CFTC have been embroiled in a dispute over which agency should regulate the crypto industry.

Furthermore, President Trump nominated former SEC Commissioner Paul Atkins to lead the SEC, though the Senate has yet to schedule a hearing on the nomination. Atkins holds a considerably more lenient view on crypto regulation than his predecessor, Gensler. He publicly stated that the SEC's enforcement actions hampered the growth of the U.S. crypto industry and, as co-chair of the Token Alliance (a crypto industry lobbying group), repeatedly called for reduced crypto regulation.

Kara Calvert, Coinbase's vice president of U.S. policy, stated: "I think the signal Trump is going to send is that the U.S. is back, and we're ready to lead this industry. It also sends a signal to other countries: be careful, or you'll be left behind."

Despite regulatory headwinds during the Biden administration, the U.S. cryptocurrency market has continued to expand. Major financial companies, including BlackRock, the world's largest asset manager, launched spot Bitcoin and Ethereum ETFs last year. BNY Mellon is actively expanding its crypto custody business, while Cantor Fitzgerald announced plans to launch a Bitcoin financing business.

Since the November election, the price of Bitcoin has risen nearly 50%, surpassing $100,000. Sources suggest the U.S. government is considering establishing a national Bitcoin reserve, which would include the significant amount of Bitcoin seized during various investigations. According to analytics firm Arkham, the U.S. government currently holds nearly $20 billion worth of Bitcoin.

Last week, Trump launched his personal meme coin, "$TRUMP," causing a market explosion with its market capitalization surging billions of dollars overnight. Subsequently, First Lady Melania Trump launched "$MELANIA." Both digital currencies were created and tracked on the Solana blockchain.

On the 21st, Trump addressed the "coin launch" for the first time at a White House press conference. He stated that he only launched "$TRUMP," knowing little about other situations, but didn't directly deny making billions of dollars from it, adding that it was small change for tech moguls.

The Trump administration's shift in attitude towards cryptocurrency regulation will undoubtedly have a profound impact on the global cryptocurrency market. The SEC's establishment of the cryptocurrency task force, headed by "Crypto Mom" Hester Peirce, suggests the U.S. is entering a more friendly and transparent era of cryptocurrency regulation. This shift will not only influence the development of cryptocurrencies within the U.S. but will also serve as a model for cryptocurrency regulatory policies in other countries, further promoting the healthy development of the global cryptocurrency market. However, the formulation and implementation of specific regulatory frameworks will require time, and future developments remain uncertain. How the task force balances innovation with risk, and how it coordinates with other regulatory agencies, will be key areas of focus. The Trump administration's policy direction will continue to shape the cryptocurrency market environment in the U.S. and globally. This new era presents both opportunities and challenges.