Elon Musk backs Cathie Wood’s vision for a crypto-friendly US economy

• Elon Musk and Cathie Wood back deregulation and tech innovation as drivers of U.S. economic growth.
• Wood proposes loosening regulations on sectors like crypto and technology to foster innovation.
• The crypto industry hopes for favorable policies under the incoming Trump administration.

In a post on X today, Elon Musk, CEO of Tesla, voiced his support for Cathie Wood, founder of Ark Invest, after she outlined her vision of economic transformation. Wood’s proposal emphasized deregulation, reduced government spending, tax cuts, and a stronger focus on technological innovation.

Wood’s message advocates for private-sector-led growth, which she believes could have an even greater impact than the “Reagan Revolution” of the 1980s.

Wood’s Proposition

Wood’s tweet highlighted the potential for a major regulatory overhaul. She called for the “defanging” of agencies like the SEC and FTC, suggesting that loosening restrictions in sectors such as crypto, technology, and finance could foster innovation. According to Wood, this regulatory shift could accelerate the development of emerging technologies like multiomics, healthcare, and digital assets.

In a video shared after Donald Trump’s election win, Wood underscored the potential for deregulated markets and tax incentives to serve as key drivers of economic growth. These sentiments were echoed by Musk, who responded to Wood’s proposal with a simple “Great,” signaling his approval.

This endorsement from Musk, alongside Wood’s vision, suggests a potential transition toward a more favorable regulatory environment for the crypto sector in the U.S. For instance, a less restrictive SEC could accelerate crypto innovation and investment in blockchain and digital assets.

The Trump Administration’s Pro-Crypto Agenda

As Musk and Wood share optimism for a tech-driven future, the crypto industry is also looking toward the incoming Trump administration for favorable policy changes. During his campaign, Trump made several pro-crypto promises, and there is growing hope among crypto advocates that these policies will come to fruition.

Key promises include removing SEC Chair Gary Gensler, creating a National Bitcoin Reserve to reduce U.S. debt, and making the U.S. the global crypto hub with pro-business regulations. 
Trump also plans to ensure all remaining Bitcoin is mined in the U.S., introduce clear crypto regulations, and defend self-custody rights. Additionally, he opposes Central Bank Digital Currencies (CBDCs) to protect financial privacy. These promises suggest significant changes for the U.S. crypto sector by January 2025.