Expert Analysis: How Trump’s Victory Could Reshape Crypto Regulation

Cristiano Ventricelli, vice president for digital assets at Moody’s Ratings, discussed the potential implications of a Trump-led Republican administration on cryptocurrency regulation

A Moody’s digital assets expert has outlined how a Trump administration and pro-crypto Congress could lead to a major shift in U.S. crypto regulation, with potentially far-reaching implications for the industry.

Following President-elect Donald Trump’s recent victory over Vice President Kamala Harris, and the election of over 280 pro-crypto candidates to Congress, a new era of crypto-friendly politics is dawning in the United States.

In an expert analysis piece, Cristiano Ventricelli, vice president for digital assets at Moody’s Ratings, discussed the potential impact of a Republican administration on cryptocurrency regulation.

According to Ventricelli, a Republican presidency may lead to a more accommodating stance towards cryptocurrencies, including the possible appointment of digital-asset friendly regulators.

However, he noted that substantial legislative change will still hinge on bipartisan cooperation.

“Any legislative advancements are contingent upon congressional action,” Ventricelli clarified. “While Republicans may ultimately control both the House and Senate, digital assets legislation will require bipartisan support, cannot be achieved through budget reconciliation, and it’s unclear the parties will reach a consensus in the short term.”

Shifting Focus at the SEC

The anticipated leadership change at the U.S. Securities and Exchange Commission (SEC) will also play a crucial role in shaping the future regulatory landscape for crypto in the U.S.

Trump has vowed to replace the current SEC Chair Gary Gensler, who has faced widespread criticism from the crypto sector for his “regulation-by-enforcement” approach, which many industry leaders view as stifling innovation.

Coinbase CEO Brian Armstrong and others have repeatedly called for a new SEC leadership focused on transparency and a supportive regulatory framework.

SEC Commissioner Hester Peirce, who has earned the industry nickname “Crypto Mom,” has been lauded for her strong advocacy for a clear and innovation-friendly regulatory approach to crypto.

If Peirce declines to pursue the SEC chair role, Commissioner Mark Uyeda is seen as a potential successor who could steer the SEC in a more crypto-friendly direction, in line with Trump’s stated pro-innovation stance.

This shift would mark a significant regulatory departure for the U.S. crypto industry.

“Further legislative and regulatory clarity could enhance the U.S.’s position in the digital finance industry globally, facilitating closer alignment with the regulatory landscapes of Asia and Europe,” Ventricelli concluded.