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President-elect Donald Trump has announced his pick for Treasury secretary in the form of Scott Bessent, who is renowned in the crypto space for championing the industry.
A vocal fan of blockchain and digital assets, Bessent was described as the "most pro-innovation, pro-crypto Treasury Sec we've ever seen" by Ripple CEO Brad Garlinghouse on Friday.
I don't want to get too far ahead of myself but...
— Brad Garlinghouse (@bgarlinghouse) November 23, 2024
Scott Bessent is the perfect pick by @realdonaldtrump!
He will be the most pro-innovation, pro-crypto Treasury Sec we've ever seen
Bessent's main claim to fame is serving as chief investment officer for billionaire George Soros and as the founder of Key Square Capital Management. He has invested in a slew of blockchain in startups and DeFi initiatives, habitually backing the industry.
Earlier this year, Bessent told Fox Business, “Crypto is about freedom and the crypto economy is here to stay. Crypto is bringing in young people, people who have not participated in markets.”
Incoming @USTreasury Secretary-Designate Scott Bessent:
— Dan Spuller (@DanSpuller) November 23, 2024
“I am excited about the President (Elect)’s embrace of #crypto….”crypto is about freedom, and the crypto economy is here to stay”pic.twitter.com/dmMrCAh9MZ
He has also been a staunch supporter of Trump's attitude towards crypto. "I have been excited about the [Trump’s] embrace of crypto, and I think it fits very well with the Republican Party," Bessent said.
“Crypto is about freedom.. The crypto economy is here to stay, the Democrats are running from it because they are trying to wash off the stench of Sam Bankman-Fried and his family donations to the Democratic party.”
Bessent's stance sharply contrasts with current Treasury Secretary Janet Yellen's focus on crypto risk and crypto industry leaders are expecting him to create a clear regulatory framework for digital assets.
However, critics warn that while his hedge fund background may favor institutional players, retail investors, and smaller blockchain firms might not see equal benefits. Comprehensive changes to crypto regulation require approval too.
His call for "smart regulation" has nonetheless been welcomed by the industry and his tenure could usher in a new era of crypto policy.
Yet to be sworn in, Trump is already paving the way for a crypto-friendly administration. Howard Lutnick, CEO of Cantor Fitzgerald is expected to be nominated as Commerce Secretary. 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.
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Additionally, the likes of Ripple, Kraken, and Circle have expressed interest in Trump's proposed crypto advisory council.
"Upon taking office, I will immediately appoint a Bitcoin and crypto Presidential Advisory Council," Trump said in July.
"Their task will be to design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days. We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry."
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But perhaps the most exciting administration shuffle ahead of Trump's presidency is the official resignation of US Securities and Exchange Commission (SEC) Chair Gary Gensler, which is set for 20 January 2025.
Making the announcement on X, Gensler said "It has been an honor of a lifetime to serve w/ them on behalf of everyday Americans & ensure that our capital mkts remain the best in the world."
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