Donald Trump has vowed to replace current SEC Chair Gary Gensler with a pro-crypto industry nominee. The new chair should focus on five critical issues to enhance the US crypto market.
Points
- Trump plans to replace SEC Chair Gary Gensler with a pro-crypto industry nominee.
- The new SEC chair should address five key issues to support the crypto market.
- Issues include enabling Ether fund staking, embracing on-chain compliance, updating KYC and custody rules, regulating DEXs, and promoting on-chain dollarization.
At a recent Bitcoin conference in Nashville, Republican presidential nominee Donald Trump announced his intention to replace SEC Chair Gary Gensler with a pro-crypto industry replacement if elected. This change could have significant implications for the US crypto market. To turn America into the crypto capital of the world, Trump’s nominee should tackle five critical issues from the start.
Let Ether Funds Start Staking
Spot Ethereum （ETH） exchange-traded funds （ETFs） hit the market on July 23, but staking is notably absent. The Investment Company Act of 1940 requires ETFs to promptly redeem shares for underlying fund assets on demand, which is challenging with ETH staking due to unpredictable withdrawal timelines. The SEC has previously exempted funds from this rule and should do the same for spot Ether, crafting a thoughtful carveout to allow staking.
Embrace On-Chain Compliance Solutions
The SEC should adopt a flexible approach to securities market functions such as reporting, clearing, and settlement. Distributed ledgers automatically record and settle every on-chain transaction, offering high resistance to manipulation or fraud. The SEC should replicate its recognition of on-chain ledgers as valid financial reports at scale and issue comprehensive guidance for others to follow.
Upgrade KYC and Custody Rules for Web3
Self-custody wallets like Ledger and MetaMask are currently regulatory black holes, off-limits to most security tokens. However, qualified crypto custodians （QCs） are already proliferating in the US. Adding elements of self-custody to existing rules for crypto QCs would strengthen investor protections. These changes can be achieved within existing laws and would enhance the regulatory framework for Web3.
Bring DEXs Out of the Shadows
Decentralized exchanges （DEXs） such as Uniswap and Balancer replace costly intermediaries with transparent, non-custodial smart contracts. Despite their potential, DEXs remain largely unregulated due to jurisdictional tussles between the SEC and the Commodity Futures Trading Commission （CFTC）. The SEC should clarify which tokens are securities, establish a clear registration path for the DEXs trading them, and delegate the rest of the spot crypto market to the CFTC. DEXs should meet standards comparable to traditional exchanges for risk management, KYC, and disclosures while fully embracing on-chain solutions where feasible.
Dollarize the Digital Economy with RWAs
On-chain dollarization presents a significant opportunity for the US crypto market. Global demand for tokenized dollars is growing rapidly, and dollar-backed stablecoins like USD Coin （USDC） and Tether （USDT） have already invested heavily in US government debt. The SEC should foster a robust on-chain market for USD-backed real-world assets （RWAs）, ensuring these tokenized securities leverage blockchain’s capabilities to be tradable on DEXs, accessible to user-managed wallets, and open to Web3 developers.
Conclusion
Trump’s vision for America to lead the crypto world requires a strategic approach to regulation that balances innovation with investor protection. The next SEC chair must be ready to act on these five key issues to create a thriving and secure crypto ecosystem in the US.
解説
- Addressing these five issues would position the US as a leader in the global crypto market, fostering innovation and maintaining regulatory oversight.
- Enabling Ether fund staking and embracing on-chain compliance solutions would modernize the SEC’s approach to crypto regulation.
- Updating KYC and custody rules for Web3 would enhance investor protections while facilitating broader adoption of self-custody wallets.
- Regulating DEXs and promoting on-chain dollarization would ensure a secure and vibrant digital economy.
- These changes would help the US capitalize on the growing demand for crypto assets and blockchain-based financial services.