Donald Trump Eyes New White House Role to Champion Crypto Policy

Trump’s administration is reportedly already consulting with industry leaders and vetting candidates. This role is expected to serve as a liaison between the president, Congress, and federal agencies like the SEC and CFTC. Trump's election already boosted crypto market optimism, but former House Speaker Paul Ryan recently pointed out the need for bipartisan cooperation to fully advance crypto reforms. The retirement of FDIC Chair Martin Gruenberg also paves the way for Trump to reshape financial oversight and restore banking ties that are critical to the crypto sector.

Trump Administration Plans Crypto-Specific White House Position

President elect Donald Trump is reportedly considering establishing a new White House position that will be exclusively dedicated to cryptocurrency policy, according to a Bloomberg report on Nov. 20. This role will be the first crypto-specific position in the White House, and proves that the upcoming Trump administration might take crypto a lot more seriously. Trump’s team is consulting with industry leaders to evaluate the necessity of the position and is in the process of vetting candidates.

The responsibilities of the role will likely include managing a small staff and acting as a liaison between the president, Congress, and federal regulatory bodies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). While it is still unclear if the position will be a White House staff role or a broader “crypto czar” overseeing policy across multiple agencies, industry advocates are pushing for the position to report directly to Trump.

Some executives, including Coinbase CEO Brian Armstrong and former Coinbase official Brian Brooks, reportedly met with Trump on Nov. 19 to talk about industry priorities. The transition team is also considering current and former CFTC officials for key regulatory positions. 

Summer Mersinger, who is a Republican CFTC commissioner known for advocating for a more lenient regulatory approach to crypto, is a candidate to chair the financial regulatory agency. Mersinger previously criticized the CFTC’s enforcement actions against crypto firms, and described them as “regulation through enforcement.”

Trump has gotten a lot of support from crypto advocates by pledging to position the United States as the “world’s crypto capital” and by promising to stop regulatory crackdowns on the industry. His administration’s approach already had market implications, as shares of crypto exchange Coinbase surpassed $300 in November for the first time since 2021 after Trump’s election victory. 

Analysts attribute this rally to optimism about reduced regulatory pressure under a Trump-led administration. This could be specifically applicable to Coinbase’s staking business, which has faced a lot of scrutiny from the SEC.

Trump also appointed Howard Lutnick, CEO of Cantor Fitzgerald and a long-time crypto advocate, as his secretary of commerce. 

Trump’s Crypto Push Needs Bipartisan Support

Former House Speaker Paul Ryan addressed the North American Blockchain Summit in Texas on Nov. 20, where he discussed the challenges facing the incoming Donald Trump administration and the broader political landscape. He was interviewed by former White House Security Adviser Faryar Shirzad. 

Ryan placed a lot of emphasis on just how important bipartisan cooperation is to advance critical legislation, particularly on crypto policy, despite Republican control of the executive branch, Senate, and House.

Paul Ryan at the NABSummit (Source: Twitter)

Ryan is optimistic about Trump’s election victory, and called it one of the most impressive political battles in U.S. history. He even urged his colleagues to support the administration. Despite personal differences with Trump, Ryan wants to see Trump’s administration succeed, and believes that Trump’s triumph will benefit the nation as a whole. 

On the other hand, he did warn that a razor-thin Republican majority in Congress could actually impede progress on some key legislative goals, including crypto reforms. He specifically pointed out the importance of securing 60 votes in the House to pass legislation, and also stressed that bipartisan efforts will be essential to really enact meaningful policy changes.

Ryan pointed to the potential inclusion of crypto policy in the Farm Bill as a practical example of bipartisan cooperation, and sees it as a manageable starting point for advancing legislation. He also praised Trump’s cabinet appointees for their alignment with Web3, crypto, and stablecoin initiatives. 

Ryan did, however, advise against depleting the House majority further by appointing members to the cabinet, and warned that filling vacant seats could be delayed depending on the political dynamics of individual states. Republican-led states might act more quickly to fill vacancies, whereas Democrat-led states could intentionally stall the process to complicate  the Republican agenda a bit.

The discussion also touched on the appointment of Representative Matt Gaetz as U.S. Attorney General, which sparked some controversy due to an ongoing ethics inquiry. After Gaetz’s departure from Congress, Republicans pushed to suppress the findings of the ethics investigation. Representative Marjorie Taylor Greene weighed in, and suggested that if ethics reports are to be released, all ports should be made public.

Ryan concluded his talk by acknowledging the challenges Republicans face in expanding their majority and passing legislation efficiently. While he is still optimistic about the potential for progress, Ryan still believes that bipartisan cooperation will be critical for the Trump administration to achieve its goals in the crypto sector.

FDIC Chair Martin Gruenberg to Retire

Martin Gruenberg is chair of the Federal Deposit Insurance Corporation (FDIC) and was a key figure in the alleged ”Operation Chokepoint 2.0.” However, he announced his retirement effective Jan. 19, just one day before Donald Trump’s inauguration as president. Gruenberg informed FDIC employees and outgoing President Joe Biden of his decision, according to a Nov. 20 Reuters report.

Republican Congressman Tom Emmer criticized Gruenberg on social media, and accused him of spearheading Operation Chokepoint 2.0 and overseeing a toxic workplace environment at the FDIC. Emmer’s comments also referred to a May congressional hearing where Gruenberg testified about findings of sexual harassment, assault, and mistreatment under his leadership. 

Operation Chokepoint 2.0 is a term that was coined by Castle Island Ventures partner Nic Carter. It describes an alleged initiative to pressure banks into severing ties with crypto businesses. It is also rumored that this campaign contributed to the collapse of crypto-friendly banks like Silvergate and Signature Bank in March of 2023, which left exchanges like Binance without reliable local banking partners.

Nic Carter also claimed that Silvergate Bank might have survived if not for the alleged regulatory pressure to limit crypto deposits to 15%. According to Carter, this restriction was enforced with threats of severe consequences that could undermine the bank’s stability. The role of crypto-friendly banks in the industry is critical as they provide certain essential services like deposit acceptance, on-ramps for customers, and payment processing.

Martin Gruenberg

Gruenberg’s departure will be the end of his tenure at the FDIC that began in 2005, where he served as chair or acting chair intermittently. His exit clears the path for the incoming Trump administration to appoint a new FDIC leader, which could signal a shift in regulatory tone moving forward. Many industry advocates see this shift as an opportunity to rebuild banking relationships and stabilize the sector after years of regulatory pressure.