'Era of blocking crypto innovation is over': Crypto industry responds to Trump's early moves
This week, Wyoming Senator Cynthia Lummis used a Bitcoin symbol when calling Trump’s sovereign wealth announcement a “Big deal,” sparking optimism that Bitcoin might play a role in the fund.
However, at a press conference on Tuesday, White House AI and crypto czar David Sacks clarified that the sovereign wealth fund was “separate” from any Bitcoin moves the administration was currently weighing.
“While a SWF [sovereign wealth fund] could provide diversification and influence in global markets, its establishment raises concerns due to the U.S.’s status as a net debtor, potentially complicating funding without increasing national debt,” Forest Bai, co-founder of Foresight Ventures, said in a statement shared with TheStreet Crypto.
“Investments by a U.S. SWF might include traditional assets like stocks, bonds, and real estate, alongside emerging sectors like technology and renewable energy,” Bai explained. “Although there's speculation about including cryptocurrencies, the SWF's role would likely extend beyond crypto to support strategic national interests, contrasting with an SBR's more specific focus on Bitcoin as a hedge against inflation.”
Meanwhile, crypto czar Sacks emphasized the need for regulatory clarity on Tuesday and highlighted the Trump administration's efforts to advance this effort, including through the formation of an internal working group on digital assets.
"A structured working group and a defined legislative framework are exactly what the industry has been calling for,” Laurenth Alba, the Head of Business Development at Rome Protocol, told TheStreet Crypto.
“Regulatory uncertainty has driven talent, capital, and innovation to jurisdictions like Singapore, Switzerland, and the UAE for years,” Alba added. “If this initiative successfully introduces clear, pro-innovation guidelines, it could incentivize crypto companies to return to the U.S.”
"With all aspects of government now aligned, it’s clear that the era of blocking crypto innovation is over," added Paul Neuner, CEO of Telcoin.
During Tuesday's speech, Sacks highlighted the Trump administration's desire to retain American talent in the crypto industry. The message resonated with some crypto firms: "We were hounded by the SEC [the U.S. Securities and Exchange Commission] in their notorious 'war on crypto," said Alex Konanykhin, CEO of Unicoin, a firm that recently received a threat of an SEC enforcement action . "It was very refreshing to hear from David Sacks that he wants 'to keep innovation onshore in the U.S.'"
While much of the crypto industry is focused on the administration’s regulatory direction, there is also a growing belief that the Commodity Futures Trading Commission (CFTC) will play a larger role in overseeing the digital asset industry.
“One of the most interesting things about David Sacks' first press conference was not what was said, but who was present," Austin King, CEO of Omni Labs, told TheStreet Crypto. "Members from any financial watchdog like the SEC were notably absent. This could indicate that he will prioritize setting up a regulatory framework under the CFTC, which is likely to be far less restrictive.”