Mar 22 • 13:00 UTC 🇬🇧 UK Guardian

New crypto regulations likely to be big favor to the Trump family, industry insiders say

New guidelines from US regulators on cryptocurrency may benefit the Trump family's investments in the crypto sector by reducing oversight requirements.

The new rules implemented by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) categorize most crypto assets as commodities or other classifications rather than securities, which means they will face lighter regulatory scrutiny. This shift in regulation is seen as advantageous not just for the broader cryptocurrency sector, but specifically for ventures associated with the Trump family. Industry insiders have noted that the Trump family's investments in cryptocurrency could stand to gain significantly from these more favorable guidelines.

The SEC's new framework, referred to as a 'token taxonomy,' redefines how various crypto-based assets are classified. Under this new rule, only blockchain-based tokens representing existing securities will still be classified as securities, which maintains stricter SEC oversight. The remaining cryptocurrency assets will largely escape the intense regulatory requirements that historically discouraged innovation in this space, potentially opening up new opportunities for investment and growth.

This regulatory change comes against a backdrop of ongoing debates about the need for balanced regulation that protects investors while allowing for innovation in the financial technology sector. The implications of these guidelines could reach far beyond individual investors, affecting market dynamics, investor sentiment, and the development trajectory of cryptocurrencies in the US economy. As crypto assets continue to evolve, the Trump family's ability to leverage these regulations could raise further questions about the influence of politics on regulatory practices in the financial industry.

📡 Similar Coverage