Trump filling Democratic seats at SEC, CFTC could advance crypto bill talks, TD Cowen says
Filling vacancies with Democrats at the SEC and CFTC could advance stalled crypto market structure bill negotiations, according to TD Cowen.Summary
TD Cowen suggests that resolving the political deadlock over a U.S. crypto market structure bill hinges on filling vacancies at the SEC and CFTC with Democratic appointees. The primary obstacle is a conflict-of-interest dispute, where Democrats demand a ban on senior officials' digital asset transactions, which would affect President Trump due to his crypto holdings like World Liberty Financial. Republicans oppose this, believing Trump would veto such a requirement. TD Cowen proposes a compromise: Trump appoints Democrats to the SEC and CFTC, and in return, Democrats accept conflict-of-interest rules that only take effect after the next presidential inauguration. This would allow a future Democratic president to immediately control rule-making at these agencies. Despite this potential path forward, other sticking points like stablecoin yield regulation remain, though TD Cowen believes the CLARITY Act could still pass.
(Source：The Block)