In a significant development for the cryptocurrency sector, it was initially reported by Bitcoinist that Donald Trump, the President-elect, was to meet privately with Brian Armstrong, the CEO of the renowned US-based crypto exchange, Coinbase. This interaction was anticipated to potentially reshape the regulatory framework for cryptocurrencies in the United States.
Insightful Conversation Between Coinbase CEO and Trump
On Tuesday, Fortune clarified that the anticipated private meeting was instead a phone conversation. During this dialogue, Brian Armstrong, who has strategically allocated approximately $50 million towards supporting pro-crypto political figures, including Trump, engaged in discussions that focused on the broader landscape of cryptocurrency rather than delving into specific appointments or regulations.
Social media buzzes with unconfirmed reports suggesting that Brad Garlinghouse, the CEO of Ripple Labs, may have also had direct communication with Trump. However, a Ripple spokesperson has clarified that the company refrains from commenting on private discussions.
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Individuals familiar with the conversation between Trump and Armstrong have highlighted that the crypto community is particularly attentive to possible appointments at two vital financial regulatory bodies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The Importance of SEC and CFTC Leadership
A trusted source, identified by Fortune as a key player in Washington, D.C., emphasized that “The SEC is where all the damage is being carried out,” alluding to the series of lawsuits initiated by SEC Chairman Gary Gensler. With Gensler’s anticipated departure by year-end, there is speculation about whether the agency will promptly abandon cases not directly tied to fraud. The source suggested that a temporary chair might be less inclined to take such decisive action.
The CFTC is poised to potentially expand its role in the oversight of digital assets, contingent upon legislative adjustments that may transfer certain regulatory responsibilities from the SEC to the commodities authority.
Fortune has identified potential candidates for the CFTC leadership, including Summer Mersinger, currently serving as a commissioner, and Josh Sterling, an attorney at Milbank with substantial experience representing cases within the industry.
The total market cap for cryptocurrencies is currently valued at $3 trillion, according to TradingView.com.
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