As President-elect Donald Trump prepares to take over the White House next year, anticipation surrounding David Sacks’ role as the United States’ ‘crypto duke’ is growing in the cryptocurrency sector. In a conversation with TinTucBitcoin, industry leaders such as Ryan Chow from Solv Protocol and Kadan Stadelmann from Komodo expressed optimism about Sacks’ appointment, expecting beneficial changes towards a regulatory environment. more industry-friendly.
The crypto industry welcomes Sacks’ appointment
Earlier this month, Trump appointed Sacks, a seasoned entrepreneur and investor with more than two decades of experience in Silicon Valley, as the White House’s cryptocurrency and AI duke. Sacks brings vast experience to the role, having been the founding COO of PayPal and a member of the “PayPal Mafia.” He then founded Yammer, an enterprise software platform that Microsoft acquired for $1.2 billion. The crypto community has high hopes for Sacks, hoping he will guide the development of a unified national approach to policymaking and place the United States at the forefront of emerging technologies. go up.
Sacks is expected to call for clearer guidelines that benefit blockchain companies, which could ease compliance burdens and encourage investment in digital assets,” Solv Protocol CEO Brian Chow shared with TinTucBitcoin.
A strong and early supporter of cryptocurrency, Sacks has shown support for Trump’s efforts to engage with industry leaders. After his appointment, he expressed his excitement in a post on the X platform post on America’s ability to enhance competitiveness in emerging technologies.
“One of Sacks’ key tasks will be to establish a regulatory framework for cryptocurrencies, providing much-needed clarity to an industry that often faces regulatory uncertainty. His appointment could be a sign that the Trump administration is aiming to implement business-friendly regulations that could spur innovation in the blockchain industry. This is consistent with Trump’s campaign promises to position the United States as a leader in technology and cryptocurrency,” Chow added.
With his longtime enthusiasm for cryptocurrency, Sacks now has the opportunity to influence the development of industry-friendly regulations.
Dismantle Gary Gensler’s “overly aggressive” regulations
The new ‘crypto duke’ is also known in part for his public disdain for current Securities and Exchange Commission (SEC) chairman Gary Gensler’s approach to regulation. with digital assets.
Under Gensler’s leadership, the SEC has taken an aggressive regulatory approach, targeting major cryptocurrency exchanges and companies. While attempting to protect investors, these actions have created friction within the industry, with stakeholders arguing that they hinder innovation and create regulatory uncertainty.
Currently, the United States lags behind countries like the UAE and Singapore in providing clear regulatory frameworks for the cryptocurrency industry.
According to Chow, as Trump’s ‘crypto duke’, Sacks can effectively influence the development of clear regulatory guidance for digital assets.
“Sacks is expected to advocate clearer guidelines that benefit blockchain companies, which can reduce compliance burdens and encourage investment in digital assets,” Chow shared.
From now on, Sacks is tasked with deciding whether the United States will be a leader in blockchain innovation or risk creating further regulatory uncertainty in the cryptocurrency industry.
Role has not been determined
Although Sacks promises a crypto agenda, the responsibilities of a ‘crypto duke’ remain uncertain.
“The ambiguity surrounding Sacks’ role — which is part-time and does not require Senate confirmation — raises questions about his ability to make major policy changes,” Chow said.
Despite this ambiguity, it will be easier for Trump to appoint pro-cryptocurrency individuals to key positions in his current administration in fostering a regulatory environment conducive to innovation. digital.
“The selection of Sacks, along with Paul Atkins as SEC Chairman, represents a move away from the enforcement-heavy policies seen under the Biden administration,” Chow noted.
Besides Atkins, Trump selected Stephen Miran, a former first-term Treasury official, to chair the Council of Economic Advisers (CEA). As its name suggests, the Council serves as an advisory body to the President on economic matters. Miran is a passionate advocate for cryptocurrencies, having previously called for regulatory reform in the United States. As CEA president, he will analyze economic trends, develop economic growth strategies, and evaluate the effectiveness of existing policies. Meanwhile, Trump appointed Bo Hines, a former congressional candidate, as Executive Director of the Presidential Advisory Council on Digital Assets. Hines will work with Sacks to develop a regulatory framework that balances innovation and consumer protection. However, the crypto industry hopes Sacks will take advantage of the decision.
“While Sacks’ role is advisory and part-time, his close relationship with Trump positions him to influence key policy decisions affecting both AI and cryptocurrency,” Chow said. additional.
Sacks’ sphere of influence
In an exchange with TinTucBitcoin, Kadan Stadelmann, CTO of Komodo Platform, expressed that in the end, it is Trump who can hold the ultimate power over cryptocurrency policies.
“By blessing the crypto industry, Donald Trump himself can do much to help the United States catch up with countries where regulatory clarity has already emerged. Sacks can certainly advise and can help push other branches of government toward the President’s vision,” Stadelmann said.
While Sacks is a good addition, his appointment was not indispensable in shaping the regulations, according to Stadelmann.
“Donald Trump’s re-election could be an opportunity for companies to return to the United States, especially since he promised a 15% tax rate for corporations. Sacks’ appointment was an afterthought,” he added.
The cryptocurrency industry will see many policy changes along with the appointment of a new SEC chairman. This includes executive orders that will further facilitate banking services for crypto companies, the appointment of crypto-friendly individuals to key government positions , and even the possibility of establishing a possible strategic Bitcoin reserve.
Uncertainty about CBDC
Discussion of a more digital asset-friendly approach also brings up the issue of Central Bank Digital Currencies (CBDCs). CBDCs are issued and managed by central banks and are a form of digital currency. Unlike cryptocurrencies, CBDCs are intended to exist alongside physical money, rather than replacing it.
Aware of the digitization of money and transactions, central banks globally are increasingly exploring the development of CBDCs to ensure their relevance in a changing world of virtual finance.
“While Sacks is not tasked with developing a CBDC, his influence on cryptocurrency policy could shape discussions around it. A CBDC could be seen as the government’s way forward for the rise of private digital currencies, which could lead to increased oversight and regulation of these assets,” Chow told TinTucBitcoin. .
While the Trump administration is subject to a long list of crypto-friendly policies, CBDCs may not be at the top of the list.
“Sacks’ preference for minimizing regulation could slow or complicate any move to establish a CBDC, when he may prioritize improving the existing crypto ecosystem over introduce government alternatives,” Chow added.
How much control Sacks has in creating the U.S.-backed digital currency remains in question.
“Critics argue that Sacks’s ability to influence major decisions related to CBDCs or private cryptocurrencies may be limited without official power or oversight. It is likely that CBDC will be discussed during his term, but ultimately, well-regulated digital assets may still be the preferred choice,” Chow said.
Whether or not Trump wants to create a USD digital currency is another hurdle for CBDC enthusiasts. In January, Trump spoke in New Hampshire pledging that, as President, he would “never authorize the creation of a Central Bank Digital Currency,” calling it “very dangerous.” dangerous” and is a form of “government tyranny”. Only time will tell whether Trump’s stance remains the same.
