Original Article Title: "The 'Crypto Squad' Emerges: White House Begins Crypto-Friendly Era"

Original Article Author: Luke, MarsBit

With the blockchain industry closely watching U.S. policy, the Trump administration has once again become the focus. As Trump is set to return to the White House in 2025, discussions within the industry about the "crypto background" of key government positions continue to heat up. From SEC Chair to Treasury Secretary, these crucial roles overseeing financial regulation, if taken over by crypto-friendly individuals, could usher in significant development opportunities for the U.S. blockchain industry.

This phenomenon is not isolated. In recent years, the U.S. has seen fluctuating regulatory policies toward the crypto industry, oscillating between supporting innovation and strengthening regulation. Trump's appointments could not only change current policies but also open up new possibilities for the further legalization and promotion of blockchain technology and crypto assets in the U.S.

Who will be the core members of this "Crypto Squad"? How will their crypto experience and stance influence policy? More importantly, what kind of future will this bring to the blockchain industry? This article will analyze these questions one by one.

Past Governments and the Crypto Industry: A History of Suppression and Promotion

Before delving into the potential cryptocurrency policy changes that the Trump administration may bring, reviewing past U.S. government attitudes toward the crypto industry helps understand the current policy environment and possible future changes. Each administration has explored how to balance regulation and innovation, leaving behind its own profound mark.

Obama Administration (2009-2017)

In 2013, the Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury Department issued the first guidance on virtual currency, requiring service providers such as exchanges to comply with anti-money laundering (AML) and know your customer (KYC) regulations. This guidance directly led to the early Bitcoin exchange Mt. Gox ceasing its U.S. operations under compliance pressure. That same year, the FBI shut down the infamous dark web market "Silk Road" and arrested its founder Ross Ulbricht. At the time, Silk Road extensively used Bitcoin for illicit transactions, marking the first time Bitcoin became a core target of global law enforcement agencies.

Through these actions, the Obama administration first demonstrated its regulatory intent regarding crypto assets, focusing on risk prevention and maintaining the stability of the financial system. This set the tone for subsequent administrations to deal with cryptocurrency and made the crypto industry realize that government regulatory intervention was inevitable. Will the upcoming Trump administration continue with such a regulatory attitude, or will it take a different approach?

Trump Administration (2017-2021)

Against the backdrop of the Obama administration's initial attempts to regulate cryptocurrency, the Trump administration's attitude toward the crypto industry appeared more direct and tough. Trump openly expressed distrust in Bitcoin and other crypto assets, believing these assets lack intrinsic value and may facilitate illegal activities. In July 2019, Trump directly criticized Bitcoin on Twitter: "Bitcoin is not money, its value is highly volatile, and it is based entirely on thin air. Unregulated crypto assets can facilitate illegal activities, including drug trade." This statement was seen as a firm stance against the crypto industry.

Meanwhile, during Jay Clayton's tenure, the Securities and Exchange Commission (SEC) conducted a series of enforcement actions against unregistered initial coin offerings (ICOs), with the most notable being the injunction against the Telegram blockchain project TON. The SEC deemed its token sale a violation of securities laws, ultimately forcing the project to shut down. Similarly, Kik Interactive's ICO was also sued by the SEC, and the company ended up paying a $5 million fine.

However, despite the Trump administration's tough stance on regulation, it also showed a degree of openness in supporting innovation. The Commodity Futures Trading Commission (CFTC), under the leadership of J. Christopher Giancarlo, approved Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE). This move was seen as a significant step for cryptocurrency to enter the mainstream financial market, providing a glimpse of development for the crypto industry amid stringent regulation.

Biden Administration (2021-Present)

Following the Trump administration's dual policy, the Biden administration has taken a stricter regulatory stance on cryptocurrency. The current SEC chairman, Gary Gensler, has been actively promoting cryptocurrency market regulation. In 2022, the SEC launched investigations into cryptocurrency exchanges Coinbase and Kraken, determining that some of their crypto assets and staking services constitute unregistered securities. These regulatory actions have raised widespread concerns within the industry.

The Biden administration further tightened its control over the crypto industry through the Treasury Department. Treasury Secretary Janet Yellen explicitly stated that the use of cryptocurrency in illicit financing has become a serious issue and supported bringing Virtual Asset Service Providers (VASPs) under the purview of the Bank Secrecy Act. The SEC's lawsuit against Ripple Labs has underscored the Biden administration's tough stance, triggering not only global disputes over token classification but also casting doubt on the regulatory outlook for the entire industry.

Against the backdrop of fluctuating cryptocurrency policies in the United States across different government entities, the leadership of regulatory agencies and their policy directions are crucial for the industry's development. Especially the Securities and Exchange Commission (SEC), where the chairman's stance and actions directly impact the crypto market ecosystem. During the Biden administration, SEC Chair Gary Gensler's tough regulatory approach sparked widespread controversy and industry pressure. With Trump returning to office, the leadership of the SEC is poised for a major change.

Securities and Exchange Commission (SEC): A New Chapter After Gensler's Departure

"Crypto has long endured Gensler's tenure!" This may be the shared sentiment that countless blockchain entrepreneurs felt upon learning of Gary Gensler's upcoming departure on January 20, 2025. As the chairman of the SEC since 2021, he has left a deep mark on the entire crypto industry with his tough enforcement style. Every enforcement action of his, from Ripple's $1.3 billion unregistered securities case to compliance issues with Coinbase and Kraken, was like a heavy hammer, causing many crypto firms to cautiously tiptoe along the edge of the rules. However, with the imminent departure of this "iron-fisted chairman," the SEC's direction seems to be at a turning point.

On Trump's new appointment list, two names bring a breath of fresh air: Theresa Goody Gillen and Daniel Gallagher. These two potential candidates not only have diverse backgrounds but also represent vastly different regulatory philosophies.

Goody Gillen's name surfaced in the blockchain community for the first time with the label "Innovation Protector." This seasoned attorney is not only the founder of Goody Counsel but also the "legal advisor" for numerous early-stage crypto enterprises. She consistently tells entrepreneurs, "Ambiguous rules only lead to stagnation; what we need is clear direction, not regulatory fear." Throughout her career, her work has included helping companies navigate regulatory pitfalls legally and advocating for the industry's voice to be heard by regulatory bodies—rules should dance with technology, not suppress it.

If she becomes the next SEC chair, her first task may be to revive the "Safe Harbor" plan proposed by the 'Crypto Mom' Hester Peirce but never implemented. This plan would provide a three-year development window for crypto startups, exempting them from enforcement risks due to not fully complying with securities regulations. She may even further push for clarification of token classification standards, reducing industry uncertainty in compliance and attracting more companies to focus on the United States.

On the other side, Daniel Gallagher is a true "Old Framework Challenger." As a former SEC commissioner and current Chief Legal Officer of Robinhood, he is openly critical of the current regulatory approach. "We cannot use a law born in the last century to govern a technology shaping the future." This statement may be the best epitaph of his professional philosophy. Gallagher once stated that if he became SEC chairman, he would review all past enforcement actions against crypto companies. He especially doubts the Ripple case and Coinbase's fines, believing that these enforcement actions not only fail to effectively protect investors but also weaken the U.S.'s competitiveness in the global financial technology field. He advocates that regulation should rely more on clear and transparent rules rather than chasing companies around for fines.

The power transition at the SEC will be a key juncture in the development of the crypto industry. Gary Gensler ended his term with a "punitive" regulatory model, but his successor may bring a completely different storyline. Whether it's the style of Gensler opening the way for innovation or Gallagher challenging the old rules boldly, it is exciting to see what this upcoming new chapter will reveal. Perhaps, the future SEC will no longer be the "heavy shackle" in the mouths of entrepreneurs but rather a booster escorting the industry. Who will ultimately take the helm? The crypto industry is holding its breath.

Commerce Department: From Tradition to Innovation, Lutnick's Crypto Ambition

At first glance, the Commerce Department may seem somewhat distant from the crypto industry. However, it is a crucial hub of U.S. economic policy, especially playing an indispensable role in global trade, technological innovation, and international competitiveness enhancement. The Commerce Secretary not only holds the negotiating power of the U.S. in international trade agreements but also is responsible for boosting the competitiveness of American companies in the global market. Therefore, the decisions in this position often directly affect the positioning of emerging technologies in the global market.

"Bitcoin is the future of the economy!" This resounding declaration perhaps best reflects Howard Lutnick's unwavering belief in cryptocurrency. This billionaire, Wall Street veteran financier, and Cantor Fitzgerald CEO are becoming a crucial part of Trump's crypto policy blueprint - he has been nominated as the next Commerce Secretary, tasked with reshaping America's economic competitiveness.

Trump stated in a declaration: "I am pleased to announce that Cantor Fitzgerald's Chairman and CEO, Howard Lutnick, will be joining my administration as the United States Secretary of Commerce. He will lead our tariff and trade agenda and be directly responsible for the U.S. Trade Representative's Office." Rather than being a traditional business official, he is more like a cryptocurrency industry evangelist, describing a future economic blueprint in his unique "Finance + Technology" language.

Lutnick's involvement with the cryptocurrency industry became closely tied to his collaboration with Tether. Starting in 2021, his company Cantor Fitzgerald assisted Tether in managing a significant amount of U.S. Treasury bonds backing the USDT stablecoin. This move not only positioned him as a key player in the stablecoin ecosystem but also provided a practical example of how the cryptocurrency industry can bridge with traditional finance. Lutnick once candidly stated in an interview, "Bitcoin is not only the asset of the future but also a part of the future economy." This statement has become the best footnote to his policy advocacy.

If Lutnick successfully assumes the position of Secretary of Commerce, his influence may extend far beyond traditional trade and economic policies. It is highly likely that he will propel the U.S. to become a leading advocate and promoter of cryptocurrency in the international market. He has emphasized multiple times that the U.S. needs to lead the global digital currency revolution rather than passively follow other countries' lead. "We have the largest capital market and the strongest financial system. If we do not proactively drive the widespread adoption of cryptocurrency, we will lose this advantage," he cautioned his financial peers.

In Lutnick's policy vision, stablecoins may be a core part of his promotion. He is well aware of the potential of stablecoins in cross-border trade and payments and understands how the current regulatory uncertainty surrounding stablecoins has weakened their international competitiveness. As Secretary of Commerce, he may advocate for bringing stablecoins into a more defined regulatory framework while encouraging more businesses to utilize stablecoins in international trade and settlements. Such efforts will not only help strengthen the digital competitiveness of the U.S. dollar but also further solidify the U.S.' dominant position in the global financial markets.

Secretary of Treasury: Bessent's Cryptocurrency Blueprint

"A free economy requires free currency." On Wall Street, this statement is often used to discuss the potential of cryptocurrency, and one of its most ardent advocates is Scott Bessent. As a potential pick for the Treasury Secretary in the Trump administration, this former Chief Investment Officer of the Soros Fund Management is known for his strong pro-crypto stance and admiration for innovation.

Bissent is considered a staunch supporter of the free market, always advocating for driving economic development through innovation. In the field of cryptocurrency, his stance is even more pronounced, believing that crypto assets are a critical part of the future financial system. For the crypto industry, Bissent's potential appointment could be a key step in policy reversal.

Currently, Bissent has emerged as one of the primary contenders for the position of Secretary of the Treasury. It has been reported that Trump has met with Bissent at Mar-a-Lago to discuss the future policy direction of the Treasury Department. Trump has highly praised Bissent's leadership skills and free-market economic philosophy, putting him far ahead in the list of candidates. However, the formal nomination has not yet been announced, and the final outcome is still pending. Bissent's nomination could not only bring a new direction to the U.S. Treasury but also offer fresh hope for the crypto industry.

The Treasury Department is at the core of U.S. economic governance, overseeing tax policies, anti-money laundering (AML) rules, and international economic affairs. Especially in the field of cryptocurrency, the Treasury Department's influence is particularly prominent. It is responsible for formulating capital gains tax policies, regulating Virtual Asset Service Providers (VASPs), and coordinating global financial governance with other countries. Former Secretary Steven Mnuchin took a strict anti-money laundering stance on cryptocurrency, while Janet Yellen further emphasized the importance of preventing illicit financial flows. These conservative policies have to some extent limited the U.S.'s initiative in the global crypto competition.

This advocate of the free market has made it clear that cryptocurrency represents a new form of economic freedom. He has mentioned in several public occasions that crypto assets are not just a technological innovation but also a reshaping of the rules of economic governance by humans. Under his leadership, the Treasury Department may no longer focus solely on "risk prevention" but actively explore how to inject momentum into the industry through policy innovation and unleash the true potential of cryptocurrency.

Bissent's policy vision includes simplifying cryptocurrency tax rules. Currently, the cumbersome tax reporting process in the U.S. and high tax rates have been pain points for many crypto companies and individual investors. If Bissent takes over the Treasury Department, he may push for clearer and more favorable capital gains tax policies to provide a more friendly environment for crypto transactions. Additionally, he may dedicate efforts to relax restrictions on legitimate transactions based on anti-money laundering rules to reduce compliance costs for businesses, attracting more blockchain startups to refocus on the U.S.

Bissent is enthusiastic about the future of blockchain technology. He has warned that if the U.S. does not invest more resources in this field, it may lose its leading position in global fintech competition. As Secretary of the Treasury, he may promote inter-agency cooperation, provide funding support and policy incentives for the development of blockchain technology, and enhance the global competitiveness of the U.S. crypto industry through international collaboration. This cross-departmental coordination will not only strengthen America's technical capabilities in the blockchain field but also elevate the industry's international standing.

His policy extends far beyond domestic tax reform and regulatory relaxation. He is well aware of the importance of international competition, and therefore may pave the way for U.S. blockchain companies in the global market through active cooperation with other countries. Gensler may propose the establishment of a dedicated cross-border collaboration mechanism to help U.S. enterprises maintain a competitive edge in blockchain technology competition with other countries.

CFTC: The Return Journey of Crypto Dad Giancarlo

"What the crypto industry needs is not just regulation, but rulemakers who can lead innovation." This statement may best capture Chris Giancarlo's regulatory philosophy. The former chairman of the Commodity Futures Trading Commission (CFTC), affectionately known in the industry as "Crypto Dad," actively promoted the legalization of Bitcoin futures during his tenure, paving the way for crypto assets to enter the mainstream financial market. Now, rumors of Giancarlo's possible return to the CFTC have caused a stir throughout the industry. If he were to lead the CFTC again, the cryptocurrency market might usher in a new spring—a spring bathed in sunlight with flowers in full bloom.

The clamor for Giancarlo's return is growing louder. The Trump team has included him on the potential list of candidates for CFTC chairman, praising his market-friendly regulatory style. According to sources familiar with the matter, Trump has mentioned Giancarlo multiple times during discussions on financial policy with his team, believing that he has found a marvelous balance between promoting innovation and maintaining market stability. While the formal appointment has not been finalized, expectations for him within the industry are already running high.

As the core regulatory agency of the U.S. derivatives market, the CFTC is responsible for overseeing the crypto asset market, including Bitcoin futures. Under Giancarlo's leadership, the CFTC first legalized Bitcoin futures, a decision seen as a significant milestone in the cryptocurrency's path to the mainstream. Upholding a "market-oriented" regulatory philosophy, he believes in respecting market dynamics and avoiding stifling innovation through excessive intervention. This philosophy is like finding the rhythm in a subtle dance, careful not to step on the market's toes.

If Giancarlo were to resume his role as CFTC chairman, his policy direction might include further enriching the crypto derivatives market, such as launching futures or options trading based on assets like Ethereum. He may also push for reforming existing compliance processes, lowering the barrier for institutional investors to enter the crypto market, allowing more companies to freely navigate in this field.

Additionally, Giancarlo's emphasis on global regulatory cooperation is noteworthy. He advocates for consolidating the U.S.' leadership position in the global crypto market by establishing international standards. If he returns to the CFTC, he could promote cross-border regulatory coordination, reduce the inconsistency in policies among countries, and provide a clearer regulatory framework for the global market. This will not only help solidify the U.S.' position in the crypto industry but also bring more transparency and trust to global investors, allowing everyone to sleep soundly at night.

“We should not be afraid of technology, but embrace it.” This is Giancarlo's core philosophy. If he successfully returns, as the “Crypto Dad,” he will once again take on the mission of pushing the crypto industry forward, and the future of the crypto market will be brighter under his leadership. Everything seems to be paving the way for a better future for this industry.

Attorney General: Pam Bondi's Enforcement Turning Point

“Justice and innovation have never been opposed, but can develop together.” The news of Trump's nomination of Pam Bondi as the U.S. Attorney General quickly became the focus of public opinion. As the former Attorney General of Florida, Bondi is known for her tough law enforcement style but has also shown support for innovation and industry development in multiple cases. If she successfully assumes this position, the Department of Justice may see a new direction in enforcement in the cryptocurrency field.

Bondi's career is renowned for her efficient handling of complex cases and strong law enforcement capabilities. During her tenure as Attorney General in Florida, she led several lawsuits against interstate financial fraud and unfair business practices, setting a precedent for consumer protection and rigorous enforcement. However, at the same time, she has also shown an understanding of and support for business innovation in policy. In 2016, she pushed Florida to pass innovative regulations for the sharing economy, seen as an example of balancing regulation and development.

The Department of Justice's actions in the cryptocurrency field typically focus on anti-money laundering (AML) and combating illegal activities. Previous Attorneys General have targeted dark web markets and conducted investigations into blockchain-related crimes, demonstrating the Department of Justice's complex attitude towards the “good and evil” of cryptocurrency technology. However, these enforcement actions have been criticized for being too focused on negative aspects, lacking an understanding of the positive value of blockchain technology.

Bondi's stance on the cryptocurrency industry has not been made public, but her consistent advocacy for “legal clarity” may lay the foundation for cryptocurrency regulation. She once pointed out at an industry conference: “Ambiguous laws will only hinder innovation; what we need is clear rules to provide a fertile ground for compliant businesses while maintaining zero tolerance for illegal activities.” This aligns with the current need of the crypto industry for regulatory clarity. If Bondi becomes Attorney General, she may shift the Department of Justice's enforcement direction from “pure enforcement” to “a balanced approach of enforcement and support.” While sternly combating crypto crimes, she may push for legislation to clearly define the legal boundaries of crypto assets, reducing industry uncertainty and creating more space for innovation.

Pam Bondi's joining may bring a new enforcement perspective to the crypto industry. On one hand, her tough style will continue to ensure zero tolerance for criminal behavior, especially in money laundering, fraud, and illegal financing. On the other hand, her emphasis on “legal clarity” may push the Department of Justice to provide clearer guidance on crypto enforcement, avoiding restrictions on industry development due to legal ambiguity. In Trump's “Crypto Team,” Bondi's addition will inject more balance in enforcement into the overall policy. She not only has the ability to coordinate the contradictions between justice and innovation but may also bring a more stable and predictable policy environment to the crypto industry.

As her nomination becomes official, the Department of Justice's cryptocurrency enforcement strategy may be at a historic turning point, and this change may be the long-awaited opportunity for the entire industry.

If Trump's cryptocurrency team was a complex policy machine composed of core departments such as the SEC, CFTC, and the Treasury Department, then the upcoming establishment of the "Crypto Tsar" position is undoubtedly the lubricant of this machine—making all gears operate smoothly and seamlessly. The proposal of this new position marks the White House's first attempt to establish a dedicated senior coordination role for the cryptocurrency industry, the significance of which is no less than that of the other key members of the team.

Crypto Tsar: The Global Coordinator of the Trump Team

According to recent reports, the Trump team is considering establishing a new position dedicated to cryptocurrency policy. This "Crypto Tsar" will not only serve as a communication bridge between the President and Congress but will also coordinate cryptocurrency policies across federal agencies such as the SEC, CFTC, and the Treasury Department, ensuring that the policy directions of these departments do not conflict with each other.

Imagine if the SEC chair vigorously pushes for loosening the registration standards for crypto assets while the Treasury Secretary is busy tightening tax policies on the sidelines, such a division would undoubtedly be a headache for the entire industry. The "Crypto Tsar," as the central coordinating officer, will balance the interests of all parties in these potential policy contradictions, unify action plans, and provide a stable and coherent policy environment for the cryptocurrency industry.

The establishment of this position reflects the importance of the cryptocurrency industry in the Trump administration. Over the past few years, the cryptocurrency industry has been caught in the regulatory cracks of various federal agencies, with policies being fragmented and enforcement inconsistent. The SEC emphasizes the applicability of securities laws, the CFTC focuses on the derivatives market, and the Treasury Department centers on AML and tax compliance. This multi-headed regulation has caused many businesses to wander in a policy fog, struggling to find a way forward.

The proposal of the "Crypto Tsar" is not only a response to this situation but also a proactive move in the global competitive environment. Trump clearly recognizes that if the U.S. wants to maintain its leadership in the cryptocurrency field, it needs a strong coordinator to form policy synergy, rather than each acting on its own and working at cross-purposes.

After establishing the "Crypto Tsar" position, this role will become the strategic coordinator of the Trump cryptocurrency team, providing greater room for maneuver for each department's candidate. For example, when Hester Peirce advocates for a grace period for innovative companies, the "Crypto Tsar" can push the Treasury Department to cooperate to establish more flexible tax policies. Or, when Brian Brooks tries to advance new derivatives policies, the "Crypto Tsar" can coordinate with other departments to avoid unnecessary enforcement interference.

The role of the "Crypto Tsar" is not only to coordinate policies, but also to think holistically: What kind of ecosystem does the crypto industry need? How can the United States stand out in global competition? This position will become the core neural network for policy execution, connecting various key nodes within the Trump team, enabling the Crypto Squad to truly function.

Of course, the establishment of this position itself may spark controversy. Some traditional institutions may question its necessity, believing that coordination work can be done by existing agencies. However, just as blockchain technology achieves efficiency through decentralization, a dedicated "Crypto Tsar" position may be the centralized solution to addressing multi-agency regulatory issues.

Trump's Crypto Squad is gradually taking shape, and the addition of the "Crypto Tsar" will enhance this system. This is not only an innovation in policy framework but also a significant signal of the United States' resurgence in the global cryptocurrency field. When this "lubricant" officially takes office, Trump's crypto policy machine may truly kick into gear, steering the U.S. crypto industry towards a brighter future.

Conclusion

Against the backdrop of intensified global competition, the Trump administration's "Crypto Squad" not only represents a significant policy adjustment but also heralds a potential major turning point for the U.S. cryptocurrency industry. From the SEC chair to the Treasury Secretary, and now to the global coordination by the "Crypto Tsar," these potential appointments will set the tone for the future of U.S. crypto policy, providing new impetus for the compliance and international development of blockchain technology and digital assets.

However, the real challenge is just beginning. Finding a balance between regulation and innovation, driving the U.S. to maintain its lead in the global cryptocurrency race, and formulating clear and unified policies will be the historical responsibility shoulder by Trump's "Crypto Squad."

The future is filled with uncertainty, but hope appears all the more precious because of this uncertainty. As the Trump administration gradually unveils its core member list, the U.S. crypto industry may be ushering in a new golden age. The policy machine has started running, and the next chapter of history is being authored by these key figures.

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