Crypto execs embrace Trump's pick for SEC chair as change from Gensler's approach

Cryptocurrency executives are embracing U.S. President-elect Donald Trump's pick to lead the Securities and Exchange Commission, calling it a "step forward" for the industry. 

Trump tapped former Republican SEC Commissioner Paul Atkins to chair the agency on Wednesday. Atkins has been friendly toward crypto over the last few years and joined The Digital Chamber's board of advisers in 2020. If the Senate confirms Atkins, his leadership could prove to be very different from that of its current chair, Gary Gensler.

"Gary Gensler has just been so negative for the crypto industry," said Marcus Hughes, vice president and global head of regulatory strategy at Kraken, on Thursday at The Block's Emergence conference in Prague. Hughes pointed to the SEC's "regulation by enforcement" approach and said Atkins' leadership will lead to more productive conversations. 

"Obviously we're feeling very excited about it, it's a great step forward," Hughes added. "Hopefully we can kind of draw a line under the Gensler years and look forward in a positive way." 

Gensler announced last month that he will be stepping down on January 20, 2025, the day of Trump's inauguration. While at the agency, Gensler maintained that most cryptocurrencies qualify as securities and urged crypto firms to register with the SEC. Some in the crypto industry have fought back, saying that it's impossible to register with the agency, partly because rules were made for more traditional entities that are different from the digital asset industry.

Hadley Stern, chief commercial officer at Solana staking marketplace Marinade, was also asked his thoughts on Atkins' nomination during the panel on Thursday. 

"Bullish," Stern said. 

Bills, bills and more bills 

Greg Xethalis, general counsel at crypto-focused investment firm Multicoin Capital, said he believes there will be crypto legislation in 2025, starting first with tax-related bills and then later in the year a focus on larger market structure-focused legislation and stablecoin bills. 

Trump's Tax Cuts and Jobs Act expires at the end of next year, so that could leave room for crypto tax proposals, including a bill introduced by Reps. Wiley Nickel, D-N.C., and Drew Ferguson, R-Ga., which would clarify that staking rewards should only be taxed at the time of sale.

Two prominent bills have gained traction in Washington over the past year as well — one focused on market structure, called FIT21, and another to regulate stablecoins.

"It will take time because crypto will not be the top legislative priority in 2025, but a lot of progress has been made in 2023 and 2024 and that will build up towards getting actual legislation," Xethalis said on stage during Emergence.