Jay Clayton, former chair of the U.S. Securities and Exchange Commission (SEC), believes that President-elect Donald Trump’s administration is likely to pass comprehensive legislation governing the cryptocurrency industry. Clayton, who has been considered for various roles in Trump’s second term, discussed this prediction in a recent speech at a securities lawyers’ event in New York, suggesting that crypto regulations will gain momentum once the incoming administration takes office.
According to Clayton, the regulatory environment under President Joe Biden’s administration has been more focused on aggressive enforcement actions against cryptocurrency companies. The Biden administration has also been slow to implement regulations that the crypto industry has been requesting. Clayton, however, believes that Trump’s presidency could lead to significant changes, as crypto legislation could gain easier traction with the right approach to executive and administrative action. This shift could also benefit companies by easing regulatory burdens that are currently seen as barriers to entry or expansion.
Clayton, who has expressed interest in a potential role in the Trump administration, highlighted the need for a balance between enforcing regulations and fostering growth within the tech and financial sectors. He criticized regulations requiring corporate disclosures of climate transition costs, arguing that such policies could discourage companies from going public. Clayton’s remarks reflect a broader difference of opinion between the Biden administration’s regulatory stance and what he anticipates under a Trump-led government.
While the specifics of potential crypto regulations under Trump remain unclear, Clayton’s comments suggest that the incoming administration is likely to adopt a more business-friendly approach, which could include clearer and more supportive regulations for the cryptocurrency sector. This marks a significant contrast with the current administration’s stance, which has taken a more restrictive approach to regulating digital currencies and assets.
