Trump’s SEC and CFTC appointments reduce crypto market volatility

Following Donald Trump’s inauguration as the 47th President of the United States on Monday, market volatility across the crypto market has been on the low. Bitcoin, at the top of the key, has seemingly stabilized along the $103,000-$105,000 levels, while other coins sitting at the top 20 market cap ranking haven’t witnessed price upticks or slumps above 2% in the last day.

Analysts have attributed this market calm to Trump’s appointment of new leadership at the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

The new appointments, which feature individuals who are all pro-crypto, are widely seen as a positive step for the industry, and the market now seems like it’s in a state of rest.

Mark Uyeda takes interim SEC chair role: A win for crypto?

In a January 20 White House notice, President Trump named Mark Uyeda as the acting chair of the SEC, succeeding Gary Gensler, who officially left the seat on the same day. Uyeda has been a Republican SEC commissioner since June 2022 and will now hold the position in an interim capacity. 

The now SEC chair, together with the crypto community are awaiting Senate approval of a permanent successor, believed to be Trump’s appointee Paul Atkins.

“The SEC’s policies and approach on crypto over the last several years have been a disaster for the entire industry. […] We have been setting these policies through enforcement and done nothing to provide guidance…The war on crypto must end.”

Uyeda told FOX News in October 2024.

As a veteran in securities law, attorney Uyeda previously served as counsel for former SEC Commissioners Michael Piwowar and Atkins, who are widely known for their pro-crypto stances.

Uyeda has been a vocal critic of Gensler’s tenure, particularly his enforcement-heavy approach to regulating the cryptocurrency industry. 

“An administration change will give the SEC a chance to reset its regulatory agenda to focus on capital formation and innovation while protecting investors, like seniors, from scam artists defrauding them,” Uyeda told Reuters.

According to FOX News correspondent Eleanor Terrett, the attorney will attend the SEC’s closed meeting on Thursday, January 23. XRP enthusiasts are speculating that the financial regulator will vote to dismiss the ongoing Ripple Lab’s court case, as the official meeting files have noted “resolution of litigation claims” as part of the agendas in the discussion.  

CFTC leadership change: Caroline Pham replaces Benham 

On the day he took office, Trump also selected Caroline Pham as the acting chair of the CFTC, replacing Rostin Behnam. Pham is recognized as a staunch advocate for crypto regulatory clarity, joining the CFTC as a commissioner under the Biden administration in 2021. 

Like Uyeda on the SEC, she is expected to lead the agency until a permanent chair is confirmed by the Senate.

“I’m looking forward to engaging with all stakeholders in this new capacity as we focus on the CFTC’s mission to promote well-functioning markets that support economic growth and the competitiveness of the United States,” Pham stated after her appointment.

Per a Bloomberg report, the attorney once proposed the use of “regulatory sandboxes” to allow digital asset companies to test their products under regulatory supervision without fully complying with existing rules. She said the idea provided a way to innovation while maintaining oversight, a stance that has gained her quite the backing within the crypto community.

Market sentiment positive despite Trump’s “silence” on crypto post-inauguration

Uyeda and Pham’s appointments on Monday was met with heavy optimism from across the whole industry. President Trump failed to address anything about crypto during his Inauguration speech, and that aided to $1.2 billion liquidations in the market, per Coinglass data. However, BTC’s price didn’t drop below $101,000, and it recovered to levels above $103,000 in the early hours of Tuesday.  

Agne Linge, Head of Growth at WeFi, noted that some investors who sold their Bitcoin during the inaugural volatility may now be feeling a little more FOMO.

“If the US SEC can release new rules to permit Web3 innovators to create new markets with blockchain’s potential, the upside is high for all stakeholders involved,” Linge stated in a recent interview.

Moreover, QCP Capital analysts echoed this sentiment, reiterating the potential for regulatory clarity under the new SEC leadership is much higher than the previous administration’s tenure. 

“The US Securities and Exchange Commission’s new leadership has introduced a task force dedicated to developing a regulatory framework for crypto assets. This initiative promises to be a game-changer for the digital asset space,” the firm asserted.

Under Uyeda’s interim leadership, the financial watchdog is expected to take a more collaborative approach. Sources cited by Reuters are saying Uyeda and SEC Commissioner Hester Peirce could launch a cryptocurrency policy overhaul as early as this week.

Similarly, Pham’s leadership at the CFTC is expected to provide a fresh perspective on crypto regulation. Economists predict she is the one who will retain the seat permanently, as her policies align with Trump’s broader agenda to make America the crypto capital of the world.

With Trump finally occupying the Oval Office for his second term as US President, the whole crypto industry is optimistic about the prospect of clearer regulations and a more collaborative relationship with US regulators. 

Uyeda and Pham’s tenures could be short-lived, but their appointments signal the current Republican administration’s efforts to fulfill their promises of a full-blown adoption of digital currencies. 

It also heightens the chances of a Strategic Bitcoin Reserve being launched, a proposal that President Trump could likely see through by the end of the first half of 2025.

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