Regulation 2 min, 18 sec READ

by Mike Dalton

The planned council would influence U.S. crypto policy and implement Trump's promised Bitcoin reserve.

Several crypto firms and their members are seeking positions on a crypto advisory council under Donald Trump's upcoming presidency, Reuters said on Nov. 21.

Companies including Coinbase, Kraken, Ripple, and Circle — as well as the VC firms Paradigm and a16z Crypto — could obtain board positions.

So far, Circle's plans to join appear to be the most definite. Circle CEO Jeremy Allaire told The New York Times in November that he wants a position on the council, according to a spokesperson cited by Reuters.

Reuters otherwise cited unnamed sources as the origin of its information. One source confirmed that Coinbase CEO Brian Armstrong had met with Trump to discuss undisclosed topics. They said Coinbase is interested in a council position.

Although unnamed sources expect Kraken and a16z to seek positions on the council, both firms explicitly declined to comment to Reuters.

Many of the firms have been heavily involved with politics. Coinbase, Circle, Ripple, and a16z and their members contributed millions of dollars to the bipartisan Fairshake PAC over the past election cycle, while Kraken co-founder Jesse Powell donated $1 million directly to the Trump campaign. Also, during the summer, various reports indicated that Coinbase and others had attended or planned to attend Republican and Democratic nominating conventions to advocate for policy.

Council Would Have Many Duties

Trump's crypto council would have numerous duties, according to Reuters. It would advise on policy, work on legislation with U.S. Congress, and coordinate with various U.S. agencies including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury.

It could also work to establish a strategic Bitcoin reserve. Trump originally promised to create the reserve and the council at a Bitcoin conference in July. Senator Cynthia Lummis has similarly advocated for a Bitcoin reserve in recent weeks.

The crypto council would probably be housed under the White House's National Economic Council or a different White House apparatus.

It could include enforcement representatives and former policymakers alongside members of the crypto industry.

It could also include a "crypto tsar" tasked with leadership. Bloomberg separately reported the possibility and said that the leader could have a "direct line to Trump" but described uncertainty around whether the role will exist.

Trump and his team have also been selecting individuals for roles outside of the crypto council, and some reports suggest that certain choices and candidates hold pro-crypto stances. Since previous coverage, Gary Gensler has announced plans to resign as SEC chair in January, preempting Trump's supposed plans to fire him. The position of SEC chair and many other roles are not yet filled.