New President, New Crypto Regulations - Give & Take
Everyone understands the process of give and take in negotiations, with the fresh President elect and cabinet stances on Crypto being vastly different that the current administrations. A few examples include Trump's desire for National BTC Reserve fund and new SEC chair. Those are few of the Pro's, I have not seen any of the takes?
The first item that comes to my mind is a new regulatory body being in charge of Crypto regulations. That would involve a move away from SEC to the CFTC. That's an easy assumption to make a later move in regulators. What if the power was divided to ensure bi-partisan approval/denial and prevent Operation Choke point type of operations from happening or at least make them harder.
One organization that could tackle such a task is the FSOC, (U.S Treasury Department’s Financial Stability Oversight Council). Never having heard of FSOC, I dug into them. They were formed in 2010 under the Frank-Dodd Wall Street reform and Consumer Stability Oversight Council. They have 10 voting members and 5 non-voting members they are combined State and Federal regulators. One of their main responsibilities is they produce annual report highlighting risks across a myriad of financial offerings including: Credit, Institutions and their deposits at large banks, Real Estate, Cyber Security and it appears they review Digital Assets too.
With the FSOC involvement in Digital Assets it feels like a natural extension of this committee to have more oversight of Crypto regulations too. Here is their last Digital Asset Report Its 124 page PDF that is worth a read. Currently the FSOC is making headlines with their 2024 annual report showing that Crypto Stablecoin are a concern. The report goes on to say that Tether (USDT) makes up more than half of the stablecoin market and makes up 70% of the global stablecoin market. This control could destabilize the US financial stability. Its one thing to point out a potential issue its a complete different to define a regulator framework to bring about financial stability without encumbering innovation.
Summary
If the President or any of his crypto community read this blog or reach out to me for my insight I would steer them into dividing Crypto regulation into two or perhaps three independent organizations to prevent stiffing this new form of economic stimulation much like we have seen in existence since 2008.
