Ripple, Kraken, and Circle are elbowing their way into what could become the most influential crypto group in U.S. history: Donald Trump’s crypto advisory council.
Trump’s promise to form this panel during a July Bitcoin conference in Nashville set off a mad dash among crypto companies, each eager to secure a seat at the table with the president-elect’s transition team already finalizing details.
Crypto giants compete for influence
Executives from Ripple, venture capital giant Andreessen Horowitz (a16z), Coinbase, and other major players are all vying for influence. CEO Brian Armstrong has already met with Trump, according to sources familiar with the matter, though the details of their meeting remain under wraps.
Jeremy Allaire, CEO of Circle, called this council a “crucial” step for the industry. David Bailey, the guy who set up Trump’s Nashville Bitcoin appearance and also happens to be the CEO of Bitcoin Magazine, summed up the chaos: “Leading executives from America’s Bitcoin and crypto firms will be represented.”
The council might operate under the White House’s National Economic Council or as an independent body. Either way, it’s expected to deal with big players like the SEC, CFTC, and the Treasury Department. The idea is to centralize crypto policy while pushing forward legislation that supports innovation without sacrificing oversight.
Not everyone is thrilled about this council. Consumer advocacy groups are already raising red flags, warning that letting industry insiders write the rules could lead to biased policies. Ethics concerns might slow down the process, especially when it comes to staffing the council and appointing a crypto tsar. Critics argue that such a setup could turn into a lobbying fest for companies like Ripple and Kraken.
Trump’s transition team is also considering appointing a “crypto tsar” to lead this effort. Former CFTC Chair Chris Giancarlo and a16z’s Brian Quintenz are both being floated as potential candidates. Bloomberg reports that the vetting process for this position is already underway.
Bitcoin soars amid optimism
The market isn’t waiting for the ink to dry. Bitcoin is skyrocketing, breaking records and inching closer to the long-awaited $100,000 mark. Industry insiders credit this surge to Trump’s promises of a crypto-friendly administration.
Michael Novogratz, CEO of Galaxy Digital and a long-time crypto bull, believes the rally has plenty of room to run. “This administration is packed with Bitcoin believers,” Novogratz said, adding that many of Trump’s cabinet members already hold Bitcoin.
But Novogratz isn’t blind to risks. He pointed out that stocks like MicroStrategy, which have become proxies for Bitcoin, are riding a volatile wave. MicroStrategy’s shares are up a staggering 650% this year, thanks to its aggressive Bitcoin strategy.
The company recently issued convertible bonds to buy even more Bitcoin, sparking debates over whether this strategy is sustainable.
“MicroStrategy is trading like a leveraged version of Bitcoin,” Novogratz said. He recommends sticking to straight Bitcoin investments for those looking to avoid unnecessary risk.
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Source: https://www.cryptopolitan.com/ripple-kraken-and-circle-battle-for-seats-on-trumps-crypto-advisory-panel/