Rating Trump's Latest Picks From a Crypto Perspective

As Democrats continue to wipe their tears from their (un)surprising election defeat, pro-Trumpers are giddy with excitement about the incoming President's administration - especially the crypto crowd.

Yet to be sworn in, Donald Trump has already made moves to inspire his fanbase, offering glimpses of what's expected to be a rosy red four years ahead (unless you're blue).

Loyal Blockhead readers will recall that we've already Trump's potential replacements for Gary Gensler (spoiler alert: we liked Dan Gallagher but the competition just got hotter) but as the kind souls we so famously are, we've put together another ranked list for you.

This time, we're taking a look at Trump's latest picks and gauging how beneficial they are for the crypto space.

Howard Lutnick as Commerce Secretary

Trump is expected to nominate Howard Lutnick, CEO of Cantor Fitzgerald, as Commerce Secretary. Fitzgerald, a longtime ally and vocal supporter, co-chaired Trump’s transition team, and has been heavily involved in candidate selection for the incoming administration.

Lutnick was previously considered for Treasury Secretary but faced resistance amid competition with investor Scott Bessent.

More interestingly, Lutnick has increasingly become a notable figure in the crypto industry through his leadership in diversifying Cantor Fitzgerald's investment and technology ventures. Although renowned for its financial services in traditional markets, Lutnick spearheaded efforts to embrace blockchain and cryptocurrency innovations.

Cantor Fitzgerald has explored opportunities to leverage blockchain technology to enhance financial market infrastructure under Lutnick's guidance. Initiatives like tokenizing traditional financial assets, and enabling more efficient trading and settlement processes were all credited to Lutnick's foresight, which includes positioning Cantor Fitzgerald as a leader in the institutional adoption of cryptocurrency.

The firm has also been a custodian for Tether's reserves since 2021, managing a significant portion of the assets backing Tether’s USDT stablecoin.

If confirmed, Lutnick would oversee the Commerce Department's efforts to expand economic growth, support domestic industries, and implement Trump’s proposed tariffs on imports.

Crypto Rating: 9/10

Linda McMahon as Education Secretary

World Wrestling Entertainment (WWE) co-founder and transition co-chair, Linda McMahon, has been nominated as education secretary by Trump.

McMahon’s business acumen and history of advocating for small businesses could influence crypto policy indirectly. Her tenure with the SBA focused on fostering innovation and economic growth, aligning with the entrepreneurial potential of blockchain and cryptocurrencies.

If Trump’s administration leans towards a pro-business stance, McMahon’s role could support clearer regulations and encourage crypto adoption, especially among small and medium enterprises. That said, she hasn't explicitly said anything about crypto.

Crypto Rating: 4/10

Brian Brooks as Gary Gensler's Successor (Rumoured)

Brian Brooks, a former Acting Comptroller of the Currency and current board member of the Hedera Foundation has been rumoured to replace Gensler at the SEC.

The rumour alone, shared by a Fox Business journalist citing anonymous sources, sent Hedera’s HBAR token surging 29% within a day.

🚨NEW: FOX Business has learned that former OCC Acting Director under Trump @BrianBrooksUS is on the lists for “various financial agency roles besides the CFTC”, according to a source close to him.

Outside the CFTC, some of the other financial regulatory agencies are the…
— Eleanor Terrett (@EleanorTerrett) November 18, 2024

The rumour also suggested that Brooks is under consideration for other prominent financial regulatory roles. With a background as lawyer, banker and regulatory figure, Brooks might just be the industry's top pick to take over from Gsnler.

During his brief tenure as Acting Comptroller under President Trump, Brooks championed crypto-friendly policies, granting conditional national trust charters to blockchain-focused firms such as Paxos and Anchorage.

If anything, Brooks is too crypto for the government. Senators Elizabeth Warren and Sherrod Brown both argued that Brooks' leadership overly favored crypto and corporate interests.

Crypto Rating: 10/10

Goody Guillén as Gary Gensler's Successor (Rumoured)

Goody Guillén, a partner at the law firm BakerHostetler and co-lead of its blockchain practice, is yet another leading candidate to replace Gensler.

Guillén, who served as an SEC attorney, has garnered experience defending crypto and traditional financial firms against the SEC’s regulatory actions.

"She is the best candidate of all the people that are currently being opined on,” said Brendan Playford, co-founder of Masa, a token-powered decentralized data provider for AI companies.

Guillén’s served at the SEC's Office of General Counsel in the late 2000s and worked as a chief operating officer at Kalorama Partners, where she advised clients on SEC enforcement matters.

“She is understated … but she's tough as hell,” said Charley Cooper, senior advisor at R3 and a former chief operating officer at the U.S. Commodity Futures Trading Commission.

“She would govern based on substantive understanding of securities laws as they apply to the traditional markets, as well as to crypto, and she will dramatically roll back the prior administration's default to regulating through enforcement and arbitrarily reading into statutes written 90 years ago."

As the Trump administration looks for a more business-friendly SEC leader, Guillén’s vision aligns with the push for restraint in applying securities laws to digital assets until clearer legislation is passed by Congress. Her potential appointment comes amidst a broader effort to reorganize the SEC and introduce reforms to address the rapid evolution of the crypto industry.

Crypto Rating: 9/10

Elsewhere

Blockcast

This week's Blockcast features Independent Reserve CEO Lasanka Perera, who reflects on his journey of volatility, difficulties, uncertainty, and ultimately, success.

Perera, who's also an avid golf fan, discusses how and why Independent Reserve sponsored accomplished Singaporean golfer Shannon Tan, and how the exchange is helping young people invest in crypto.

Additionally, as a seasoned crypto investor who's seen countless bull and bear markets, Perera shares his immediate reactions to the market's recent pump post-US election.

Events

Consensus (Hong Kong, 18-20 February)

Consensus is heading to Hong Kong, bringing together the industry’s most important voices from East and West for pivotal conversations and deal-making opportunities.

Consensus Hong Kong convenes global leaders in tech and finance to debate pressing issues, announce key developments and deals, and share their visions for the future.

Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.

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