During a bitcoin conference in Nashville in July, Trump pledged to establish a new council as part of a pro-crypto administration. His transition team is currently deliberating on its structure, staffing, and the selection of participating companies, according to insiders.
Several prominent U.S. cryptocurrency firms are eager to secure representation. Among them is the venture firm Paradigm, while the crypto division of venture capital powerhouse Andreessen Horowitz, known as a16z, is also expected to be included.
"It's still in development, but I expect that key leaders from America's bitcoin and crypto sectors will be involved," stated David Bailey, CEO of Bitcoin Magazine, who facilitated Trump's appearance at the July event and has discussed bitcoin policy with the President-elect.
"There's a strong desire to provide guidance and feedback," Bailey added.
Representatives from Kraken and a16z chose not to comment.
According to a source familiar with the situation, Coinbase (COIN) CEO Brian Armstrong recently met with Trump, corroborating a report from the Wall Street Journal. The specifics of their conversation remain unclear, but the source indicated that Coinbase, the largest cryptocurrency exchange in the U.S., is also keen on joining the council.
Circle CEO Jeremy Allaire expressed his interest in being part of the council in a recent interview with the New York Times, as noted by a company spokesperson.
The crypto advisory council is expected to operate under the National Economic Council of the White House, which oversees the implementation of the President's economic strategies, or potentially through a distinct White House entity, according to two sources.
The advisory role is anticipated to focus on digital asset policy, collaborate with Congress on cryptocurrency legislation, implement Trump's proposed bitcoin reserve, and facilitate coordination among various agencies, including the Securities and Exchange Commission, Commodity Futures Trading Commission, and the Treasury, according to several executives. Additionally, the council may incorporate enforcement officials and former policymakers, as noted by one source.
Trump's transition team, which has not yet provided a comment, is reportedly considering the establishment of a crypto "tsar" position, as indicated by two sources. One source mentioned that this individual would likely oversee the council, with Trump's team currently evaluating candidates for this role, as reported by Bloomberg on Wednesday.
Former CFTC Chair Heath Tarbert, who serves as chief legal officer at Circle, along with former Republican CFTC commissioner Brian Quintenz, now head of policy for a16z crypto, have been providing guidance to the Trump transition team regarding cryptocurrency policy, as previously reported by Reuters.
The anticipation of a pro-crypto Trump administration has contributed to bitcoin reaching unprecedented highs, inching closer to the long-anticipated $100,000 mark.
Trump has actively sought support and campaign contributions from the cryptocurrency sector, pledging to be a "crypto president" and to reverse President Joe Biden's regulatory actions against crypto firms accused of violating securities and anti-money laundering regulations.
The industry is advocating for executive orders that would ensure crypto companies have access to banking services, halt enforcement actions, and implement other reforms.
However, some consumer advocacy groups have expressed concerns that the crypto industry should not be allowed to dictate its own regulations, and some sources indicated that ethical considerations might delay personnel appointments. Conversely, others argue that it is logical for industry experts to contribute to significant policy discussions.
It is certainly a prudent decision to assemble a group of individuals who possess a deep understanding of both the necessary regulations for the industry and how to position it as a strategic asset, stated Nathan McCauley, CEO of Anchorage Digital, a cryptocurrency platform. He has called on the Trump administration to reconsider Biden's approach to cryptocurrency.
While the concept of presidential advisory councils is not new, there has yet to be one specifically focused on cryptocurrencies, a field that emerged with the introduction of Bitcoin in 2009. President Biden has established several councils, including one on Science and Technology, which was created through an executive order during his first month in office.
Kristin Smith, the CEO of the Blockchain Association, remarked that the establishment of a cryptocurrency council is something Trump could implement quite swiftly.