Trumps Victory Spurs New Opportunities for Crypto Regulation CFTC to Launch Digital Sandbox Circle Focuses on Stablecoin Legislation
The 2024 U.S. presidential election recently concluded, with Trump, who previously expressed support for cryptocurrency, successfully elected as the 47th President of the United States. The industry generally expects Trump to adopt a “smart regulation” stance and establish a U.S. regulatory framework for cryptocurrencies, attracting cryptocurrency entrepreneurs and industry professionals back to the country.
Caroline Pham, a commissioner from the U.S. Commodity Futures Trading Commission (CFTC), and Dante Disparte, Chief Strategy Officer of stablecoin issuer Circle, shared their views at the Singapore FinTech Festival. They believe that the establishment of regulatory directions for the cryptocurrency market and stablecoin legislation will be key to the U.S. cryptocurrency industry.
Cryptocurrency “Smart Regulation” Promotes a Clear Regulatory Framework
Pham stated that following Trump’s election victory, the U.S. will place more emphasis on “smart regulation,” meaning that there needs to be a “clear regulatory direction” rather than relying solely on enforcement actions to constrain businesses. Many companies have been investigated due to unclear government registration requirements. Pham further mentioned that the CFTC will set more specific registration standards in the future to protect consumers, relevant businesses, and market safety. She specifically noted that Trump’s tariff policies might bring geopolitical risks, further driving demand for safe-haven assets like gold and Bitcoin, forming a debasement trade.
(U.S. CFTC **: Cryptocurrency Regulatory Stagnation, Concerns Over Being a Target of Enforcement)
CFTC’s “Digital Asset Sandbox,” Six-Month Pilot to Drive Market Innovation
Pham revealed that the CFTC is about to launch a six-month “digital asset sandbox” pilot program, allowing the market to meet regulatory standards during the innovation process. She stated that the pilot program includes regulations on registration, information transparency, financial resources, and market behavior, and the CFTC will also test the application of “tokenized collateral in derivative markets” within the program. Pham emphasized that this is not just the task of a single CFTC agency but requires collaboration with the SEC. She suggested restarting the joint advisory committee between the two parties to jointly explore cross-market regulatory boundaries, similar to how securities futures were handled in the past.
CFTC Commissioner Caroline Pham at the Singapore Technology Summit
The Political Power of Cryptocurrency Cannot Be Ignored, Bipartisan Support for Stablecoin Legislation Expected
Regarding stablecoin legislation, Circle’s Chief Strategy Officer, Disparte, stated that this election saw cryptocurrency exert significant political influence. Approximately 52 million crypto voters in the U.S. were previously ignored, but now this force cannot be underestimated. Disparte further mentioned that after Trump’s election, stablecoin and market structure bills are expected to advance with bipartisan support, helping to stabilize cryptocurrency regulations. Disparte emphasized that passing a stablecoin bill would not only strengthen the U.S. dollar’s position in the global stablecoin market but also further boost Circle’s development, as Circle is also preparing for an IPO.
(Circle persists with IPO plans, optimistic about U.S. stablecoin legislation)
U.S. Regulation Lags Behind Other Countries, Trump Expected to Improve and Attract Crypto Talent Back
Disparte pointed out that the U.S. has long lagged behind other countries in “regulating” cryptocurrencies, causing many American cryptocurrency entrepreneurs and related activities to relocate to Singapore and the EU, among other regions. Disparte stated that Circle has now obtained a payment institution license in Singapore and has become the first company to comply with EU MiCA regulations. Disparte believes that if the U.S. can establish a clear cryptocurrency regulatory framework by 2025, it will attract more entrepreneurs back, thereby solidifying the U.S.’s leadership position in the global cryptocurrency industry. Disparte mentioned that Trump previously promised to fire SEC ** Gary Gensler on his first day in office, and there is currently significant market expectation for U.S. regulatory reform, with hopes that Trump will fulfill his promise and help the cryptocurrency industry develop steadily in the U.S.
Circle Strategy Officer Dante Disparte made the above remarks at the Singapore FinTech Festival
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