Nov. 22, 2024

Examining the intersection of cryptocurrency and government

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Welcome to State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. I’m your host, Nikhilesh De.

"Personnel is policy," or so goes the adage about D.C. Donald Trump's named a number of his personnel so far — though they've largely been roles that won't affect crypto too directly.

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Who's on first

Donald Trump at Bitcoin 2024 in Nashville (Danny Nelson/CoinDesk)

The narrative

"Personnel is policy," or so goes the adage about D.C. Donald Trump's named a number of his personnel so far — though they've largely been roles that won't affect crypto too directly.

Why it matters

The industry is still waiting to see how Trump's approach to crypto may differ from his first term.

Breaking it down

Trump Said to Consider Crypto Lawyer Teresa Goody Guillén to Lead SEC: CoinDesk's Christine Lee reported that Teresa Goody Guillén is one of the individuals under consideration to lead the U.S. Securities and Exchange Commission under President-elect Donald Trump. Other individuals under consideration include Brian Brooks, Brad Bondi, Paul Atkins and several others.

Crypto Foe and SEC Chair Gary Gensler Will Quit When Trump Takes Office: Gary Gensler will step down from the SEC on Jan. 20, 2025 at noon, when Trump is sworn in. SEC chairs traditionally step down during presidential transitions — former Chair Jay Clayton resigned from the agency at the end of December 2020, while his predecessor Mary Jo White resigned on Jan. 20, 2017.

Another SEC Democrat to Drop Out, Leaving Republicans Running Agency by February: SEC Commissioner Jaime Lizárraga will step down from the agency on Jan. 17, 2025, leaving Commissioners Hester Peirce, Caroline Crenshaw and Mark Uyeda running the agency until new commissioners are confirmed by the Senate and sworn in. Uyeda is expected to be named interim chair upon Trump's inauguration.

Howard Lutnick, Tether's Wall Street Banker, Is Trump's Pick for Commerce Chief, Not Treasury Secretary: Cantor Fitzgerald's Howard Lutnick was angling for Treasury Secretary but it appears he's going to be named Commerce Secretary instead. Trump has not yet named his pick for Treasury.

Trump Reportedly Plans to Name Pro-Crypto Hedge Fund Manager Scott Bessent as Treasury Secretary: Scott Bessent has been a frontrunner for the role of Treasury Secretary for a while, but late Friday Trump appears to have actually decided to tap him for the role.

A message from

Stand With Crypto , a nonprofit, champions for clear, common-sense regulations for the crypto industry. 52 million Americans have owned crypto and in 2024, the future of crypto is on the line. Crypto is a movement—economic, social, and political. Click here to learn where political candidates stand. Join us and pledge to vote today.

Stories you may have missed

Bitwise Joins Mounting Race for Solana ETF: A number of companies have filed paperwork to launch a Solana exchange-traded fund in the U.S.
U.S. SEC Loses Crypto Lawsuit Over 'Dealer' Definition That Pushed Into Crypto: U.S. District Judge Reed O'Conner, from Texas, ruled that the SEC exceeded its authority in its expanded definition of a dealer.
California Judge Puts the Kibosh on Kraken’s Interlocutory Appeal Attempt: Kraken filed for an interlocutory appeal of a federal judge's ruling that the SEC plausibly alleged certain cryptocurrencies violated securities laws. The judge denied the motion.

This Week

Monday

16:00 UTC (11:00 a.m. ET) Heather Morgan was sentenced to 18 months in prison for her role laundering funds stolen from Bitfinex in 2016.

Wednesday

15:00 UTC (10:00 a.m. ET) Gary Wang was sentenced to three years supervised release for his role in FTX's operation and collapse.

Thursday

14:30 UTC (9:30 a.m. ET) The CFTC's Global Markets Advisory Committee met, where members voted to "advance a recommendation to expand the use of non-cash collateral" using distributed ledger technology.

Elsewhere

(The New Yorker) Ronan Farrow dug into how U.S. government entities are working with — or subscribing to — spyware tools and services.
(Wired) Wired has its own guide on ensuring privacy online.
(Bloomberg) Italy's government will vote on a proposal to reduce how much the government's tax rate on crypto trades may increase. It stands at 26%, and may go to 28% with the new proposal, vs. 42% under the original proposal.
(Bloomberg) Larry Harmon, who founded the Helix mixing service, was sentenced to three years in prison after pleading guilty to one count of conspiracy to commit money laundering in 2021.
(Bloomberg) U.S. Attorney Damien Williams will reportedly step down before Donald Trump is inaugurated next year. Trump has named former SEC Chair Jay Clayton as his designated nominee for Williams' role.
(Politico) Sen. Sherrod Brown, the Ohio Democrat who recently lost his reelection bid, spoke to Politico about the election's aftermath.

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