Trump taps crypto bros to be in charge: What’s at stake?

As President-elect Donald Trump prepares for a second term, his new administration has already nominated many crypto-friendly faces for key leadership roles.

Voters who have bought into Republican narrative that the Biden administration has launched a so-called “war on crypto” are likely excited. After all, Trump is the first elected official to sell his own digital currency.

While cryptocurrency awareness is relatively high in the US, most Americans remain uninterested in the subject. Nearly six in 10 Americans (63%) say they “have little or no confidence that current ways to invest, trade or use cryptocurrencies are reliable and safe,” according to a Pew Research survey.

But with the U.S. Securities and Exchange Commission poised for an overhaul and a group of cryptocurrency advocates (listed below) nominated for cabinet or council positions, the era of crypto cronyism in the U.S. executive branch is upon us—whether Americans like it or not. Negative.

What could go wrong?

Scott Bessent

Trump’s nominee for Treasury Secretary, Scott Bessent, is a well-known cryptocurrency advocate. The former Soros Fund Management CIO made headlines by voicing his excitement about crypto’s potential to revolutionize finance and align it with Republican ideals of freedom and innovation.

The 62-year-old hedge fund manager has been vocal about steering the future of crypto away from the ramifications of figures like Sam Bankman-Fried, framing Bitcoin (BTC) as a unifying economic opportunity for younger generations frustrated by traditional markets.

If Bessent becomes head of the Treasury, he is likely to shake up digital assets and reduce the risk of serious tariffs.

Howard Lutnick

Cantor Fitzgerald CEO Howard Lutnick, Trump’s pick for Secretary of Commerce, is reportedly in talks with the largest stablecoin operator, Tether, to spearhead a $2 billion credit initiative.

Known for leading Cantor Fitzgerald into crypto trading, Lutnick’s embrace of digital assets demonstrates his knack for blending traditional finance with emerging technologies. If the Tether partnership materializes, it could expand access to capital and deepen the role of stablecoins in global financial systems under Lutnick’s leadership.

Thank you, President Trump, for trusting me to Make America Great Again. As the next Secretary of Commerce, I will join the best administration the United States has ever seen and unlock our full economic potential. pic.twitter.com/CTr0sdH6nt

— Howard Lutnick (@howardlutnick) 19 November 2024

Elon Musk and Vivek Ramaswamy

Trump’s audacious proposal to create the “Department of Government Efficiency” (DOGE) has caught the attention not only of its acronym, but also of crypto bulls who want to be at the helm.

Tesla CEO Elon Musk and biotech entrepreneur Vivek Ramaswamy, long-time proponents of Dogecoin (DOGE), have been tasked with cutting $2 trillion a year from federal programs like Medicare and Social Security. Ramaswamy suggested deleting all agencies.

There are more than 400 Federal agencies.

I was once in a meeting with a newly formed agency, but it didn’t have a name yet.

The reason there wasn’t a name was because all the good abbreviations were taken! https://t.co/0Xvei7nWln

— Elon Musk (@elonmusk) November 21, 2024

While Congress must greenlight the department’s creation, it’s worth noting that this is a real possibility given the GOP’s majorities in the U.S. Senate and House of Representatives.

Brad Garlinghouse

Ripple (XRP) CEO Brad Garlinghouse praised Trump for nominating Bessent as “Treasury Secretary.”

I don’t want to get too ahead of myself but…

Scott Bessent is an excellent choice @realdonaldtrump!

This will be the most pro-innovation, pro-crypto Treasury SEC we’ve ever seen

— Brad Garlinghouse (@bgarlinghouse) 23 November 2024

But Garlinghouse is a prominent player in Trump’s crypto strategy. He reportedly held meetings with Trump’s inner circle, suggesting that he might or had a say in hiring decisions.

In addition to advocating for the removal of SEC Chairman Gary Gensler, Garlinghouse also anticipates advancing a digital asset market structure bill in the Senate.

Brian Armstrong

According to Reuters, Coinbase CEO Brian Armstrong met with Trump. While it’s unclear what they discussed, reports indicate Armstrong is willing to join Trump’s planned Bitcoin and crypto presidential advisory council.

In both cases, Armstrong voices his thoughts on who should be responsible. Earlier this month, he abandoned the idea of ​​replacing Gensler with SEC commissioner Hester Peirce, also known in the crypto world as “Crypto Mom” ​​and who had seriously cast a shadow over Gensler’s crackdown.

And if Peirce isn’t available, there’s always Mark Uyeda, the Republican SEC commissioner who once teamed up with him to rebuke the agency for what were deemed “misguided and overbroad” lawsuits against crypto companies.

Jeremy Allaire

Allaire, chief executive of crypto company Circle, is also interested in joining the council. According to the New York Times, Allaire and other crypto professionals are pursuing Trump to learn more.

Allaire was even excited when Trump said in 2019 that he wasn’t a fan of Bitcoin.

Arguably the biggest bull signal ever for BTC. Crypto is now a Presidential/Global policy issue. People around the world will adopt a mix of sovereign and non-sovereign digital currencies. https://t.co/PK79wmCddM

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) 12 July 2019

Other entrepreneurs are following Allaire’s lead. An executive told the Times on background that he was “harassing everyone” he knew at Trumpworld in hopes of winning a seat on the crypto council.