The cryptocurrency industry is watching a dramatic power shift unfold in Washington as President-elect Donald Trump moves to reshape federal financial agencies with crypto-friendly leadership, sending Bitcoin soaring past $88,000 and reshaping the regulatory landscape for digital assets in the United States.
On November 11, 2024, multiple reports confirm that Trump’s transition team is actively vetting a roster of industry-friendly candidates for key posts at the Securities and Exchange Commission and other financial regulatory bodies, aiming to fulfill campaign promises that helped fuel Bitcoin’s historic post-election rally from roughly $70,000 to nearly $89,000 in under a week.
TL;DR
- Trump transition team is vetting pro-crypto candidates for SEC and federal banking agency leadership
- Bitcoin surges to nearly $89,000, climbing from around $70,000 since election night
- SEC Chair Gary Gensler faces likely replacement as Trump pledged to fire him
- Candidates include Daniel Gallagher, Hester Peirce, Mark Uyeda, Paul Atkins, and Chris Giancarlo
- Davis Polk identifies seven crypto banking policies likely to be revisited under new administration
SEC Leadership Overhaul in the Works
At the center of the transition deliberations is the future of the Securities and Exchange Commission. Trump famously promised to “fire” SEC Chair Gary Gensler during a major Bitcoin conference appearance, and the industry has been counting down the days. Under Gensler’s tenure, the SEC pursued what critics describe as a “scorched earth” approach to cryptocurrency enforcement, filing fraud charges against FTX leadership, levying extensive allegations against Binance, and engaging in protracted legal battles with Coinbase, Kraken, and Ripple over registration requirements.
Brad Garlinghouse, CEO of Ripple, stated that the company has been in contact with the Trump transition team, declaring that Gensler’s “days are numbered.” The candidates under consideration for the SEC include Daniel Gallagher, a former SEC official now at Robinhood who has publicly criticized the agency’s aggressive crypto stance; Hester Peirce, a current Republican commissioner known for her crypto-friendly positions and seen as a potential interim chair; and Mark Uyeda, another Republican commissioner who told Fox Business that “the commission’s war on crypto must end.”
Additionally, Trump’s team has reportedly considered Paul Atkins, a former SEC commissioner who previously served on Trump’s first transition, and Chris Giancarlo, the former CFTC commissioner who has advocated for clearer crypto regulatory frameworks. The legal mechanics of removing Gensler remain uncertain, as fully ousting a Senate-confirmed regulator could trigger a novel legal battle over presidential authority, though demoting him to a commissioner while appointing new leadership appears to be the more likely path.
Crypto Industry’s Political Investment Pays Off
The regulatory pivot comes after an unprecedented cycle of crypto industry political spending. The industry poured more than $100 million into electoral politics, helping elect over 280 pro-crypto candidates to the next Congress. In one of the most significant victories, the crypto industry helped defeat Ohio Senator Sherrod Brown, the powerful Banking Committee chair and a high-profile crypto critic, replacing him with blockchain entrepreneur Bernie Moreno.
This political investment has translated directly into market gains. The total cryptocurrency market capitalization surged from $2.23 trillion to $2.86 trillion since election night, with Bitcoin becoming the ninth-largest financial asset by market capitalization, surpassing both Meta and Tesla. The rally extends beyond Bitcoin, with Solana and Ethereum both gaining over 36 percent in the week following the election, Dogecoin surging 101 percent on Elon Musk’s association with the incoming administration, and XRP climbing 16 percent.
Seven Banking Policy Changes on the Horizon
In a comprehensive analysis published on November 11, the law firm Davis Polk identified seven specific crypto policies that federal banking agencies are likely to revisit under the new administration. These include a risk-based reconsideration of how banks interact with public blockchains such as Bitcoin, Ethereum, and Solana networks, which has effectively operated as a de-facto ban under current policy. The agencies previously declared that issuing or holding crypto assets on public, decentralized networks is “highly likely to be inconsistent with safe and sound banking practices.”
The report also anticipates a reassessment of five key activities identified in a 2021 interagency policy sprint: crypto asset custody, facilitation of customer crypto trading, crypto-collateralized lending, stablecoin-related payment activities, and holding crypto assets as principal. Other expected changes include ending what the industry has dubbed “Operation Choke Point 2.0” — the reported practice of restricting crypto firms from accessing traditional banking services — and a greater embrace of tokenization of traditional financial assets by regulated banks.
Additionally, Davis Polk expects the new administration to consider more crypto-focused bank charters, potentially including new charter types for payment stablecoins, and to evaluate whether crypto-related activities should be classified as “financial in nature” — a designation that would allow bank holding companies to engage in them more freely.
What This Means for Crypto Regulation
The incoming administration’s pro-crypto stance represents a fundamental shift in how Washington approaches digital assets. Industry executives have long argued that they seek regulatory clarity above all else, noting that Congress has failed to pass comprehensive legislation governing cryptocurrency products and services. The lack of clear rules has left agencies to apply decades-old securities and banking frameworks to novel digital asset technologies, resulting in enforcement-driven regulation that the industry considers hostile and counterproductive.
Trump’s spokesperson Karoline Leavitt emphasized that “the American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail.” For the crypto industry, those promises — making America the “crypto capital of the planet,” exploring a strategic Bitcoin reserve, and reforming federal agencies — appear to be moving rapidly from campaign rhetoric to policy reality.
Why This Matters
The convergence of Trump’s pro-crypto appointments, a Republican-controlled Congress with over 280 crypto-friendly members, and Bitcoin’s historic price action creates an unprecedented moment for cryptocurrency regulation in the United States. The policy shifts being discussed — from SEC leadership changes to banking agency reform — could fundamentally reshape how digital assets are treated under U.S. law, potentially opening the door for greater institutional adoption, clearer compliance frameworks, and a more competitive environment for crypto businesses operating in America. For investors and industry participants, the next few months of transition could define the regulatory landscape for years to come.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, and past performance is not indicative of future results. Always conduct your own research before making investment decisions.
$70K to $89K in under a week on pure vibes. this market is unhinged
pure vibes? the institutional inflows were massive. you dont pump $8K in a day on retail fomo alone
not vibes. $1.3B in ETF inflows that week. the trump trade was entirely institutional positioning for a friendlier SEC
1.3B in etf inflows that week was not vibes at all. wall street was positioning before the regulatory changes even happened
gensler getting fired would be the single biggest catalyst for altseason. guy kneecapped the industry for 3 years
replacing gensler with paul atkins is like swapping a brick wall for a toll gate. still gotta pay but at least you can pass
gensler kneecapped the industry but also approved spot ETFs. mixed legacy. atkins will be better for tokens but worse for investor protection
the davis polk list of 7 crypto banking policies to revisit is the real alpha here. not the price action
the davis polk list is buried at the bottom of every article but its the most actionable info. those 7 policy reversals will define the next 2 years of crypto regulation
gensler spent 3 years regulating by enforcement and drove an entire industry offshore. firing him is step one, building a real framework is step two