The 2024 U.S. Presidential Election recently concluded with Trump, who had previously expressed support for cryptocurrency, successfully elected as the 47th President of the United States. The industry widely anticipates that Trump will adopt a “smart regulation” stance and establish a U.S. crypto regulatory framework to attract crypto entrepreneurs and industry professionals back to the country.
Caroline Pham, a commissioner from the U.S. Commodity Futures Trading Commission (CFTC), and Dante Disparte, the Chief Strategy Officer of USDC issuer Circle, shared their views at the Singapore FinTech Festival. They believe that establishing regulatory direction for the crypto market and stablecoin legislation will be key to the U.S. crypto industry.
Cryptocurrency “Smart Regulation” Promotes a Clear Regulatory Framework
Pham stated that following Trump’s victory, the U.S. will focus more on “smart regulation,” which means setting “clear regulatory directions” 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 to protect consumers, related businesses, and market security. She specifically noted that Trump’s tariff policy might bring geopolitical risks, further driving demand for safe-haven assets like gold and Bitcoin, forming a debasement trade.
(U.S. CFTC Chairman: Crypto Regulatory Stagnation, Gold Fears Becoming an Enforcement Target)
CFTC “Digital Asset Sandbox,” Six-Month Pilot Drives 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 in 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 the derivatives market.”
Pham emphasized that this is not solely the task of the CFTC, but also requires collaboration with the SEC. She suggested reviving the joint advisory committee between the two to explore cross-market regulatory boundaries, similar to how securities futures were handled in the past.
CFTC Commissioner Caroline Pham at the Singapore FinTech Festival
Crypto Political Power Not to Be Underestimated, Bipartisan Support for Stablecoin Legislation Expected
Regarding stablecoin legislation, Circle’s Chief Strategy Officer Disparte stated that in this election, cryptocurrency exerted significant political influence, with approximately 52 million crypto voters across the U.S., a force previously overlooked but now not to be underestimated.
Disparte further mentioned that with Trump’s election, stablecoin and market structure bills are expected to advance with bipartisan support, helping stabilize crypto regulations. Disparte emphasized that passing a stablecoin bill would not only strengthen the dollar’s position in the global stablecoin market but also further promote Circle’s development, as Circle is preparing for an IPO.
(Circle Still Committed to IPO, Optimistic About U.S. Stablecoin Legislation)
U.S. Lags Behind Other Countries in Regulation, Trump Expected to Improve and Attract Crypto Talent Back
Disparte pointed out that the U.S. has long lagged behind other countries in crypto “regulation,” causing many American crypto entrepreneurs and related activities to move to regions like Singapore and the EU.
Disparte stated that Circle has currently 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 crypto regulatory framework by 2025, it will attract more entrepreneurs to return, thereby consolidating the U.S.’s leadership position in the global crypto industry.
Disparte noted that Trump previously promised to fire SEC Chairman Gary Gensler on his first day in office, and there are high expectations for U.S. regulatory reform, hoping Trump will fulfill his promise and help the crypto 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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