Biden allies sound alarm, Donald Trump and crypto take aim at SEC | Wilnesh News

On a cool, sunny June evening san franciscoAt the Pacific Heights mansion of venture capitalist David Sacks, an event rare in one of America’s most progressive cities took place: a high-dollar Republican political fundraiser.

The evening’s guest of honor was former President Donald Trump, who gave a formal speech on a curtain stage to guests who paid $300,000.

The Republican presidential candidate promised to loosen regulations on cryptocurrencies and “not hinder innovation” if he is elected in November, a person present told CNBC. After his speech, Trump invited the audience to stand.

Stuart Alderoty, chief legal officer of blockchain giant Ripple, explained that the company spent more than $100 million defending itself against a lawsuit filed by the U.S. Securities and Exchange Commission.

Aldrotti’s comments were intended to illustrate how regulatory action under SEC Chairman Gary Gensler has hobbled his company and the industry at large, according to a guest and a person familiar with the matter.

As Alderoty spoke, there was another cryptocurrency executive in the audience whose company is also fighting the SEC: Paul Grewal, the company’s chief legal officer Coin Library.

In 2020, before President Biden took office, SEC charges Ripple and its founder Acting as an unregistered broker for digital currency tokens violates securities laws, and the SEC regulates them as securities. In 2023, regulators filed similar complaints against Coinbase, the largest cryptocurrency trading platform in the United States.

The case is ongoing, and both companies have denied violating securities laws. Alderotti’s remarks at the Trump fundraiser have not been previously reported, but he has made similar remarks elsewhere.

Frustration with Gensler’s regulatory agenda has become a political talking point this year as cryptocurrency investors seek greater influence in Washington, D.C.

In recent months, Trump has seized on this frustration, transforming himself from a cryptocurrency skeptic to a cryptocurrency supporter. There are early signs that this shift is winning over Trump among the small but vocal crypto community.

Some Trump supporters in the industry aren’t just complaining about Gensler. Instead, they are trying to shape the agency — starting at the top — in a potential future Trump administration.

In recent weeks, cryptocurrency investors have floated several potential nominees for SEC commissioners if Trump is reelected, according to three people familiar with the matter.

Those names include two former chairs of the Commodity Futures Trading Commission during the Trump administration: J. Christopher Giancarlo and Heath Tarbert.

Another name that has come up is Dan Gallagher, who served as SEC commissioner during both terms of President Barack Obama and now serves as chief legal officer of investment platform Robinhood.

Gallagher said he was honored to serve as SEC chairman in the Trump administration.

“I have been privileged to serve in a variety of capacities at the SEC, including as a commissioner,” he said in a statement to CNBC.

“I care deeply about the agency, and my hope for any new SEC chair is that they will promote market access and ensure that the United States remains at the forefront of financial innovation,” he said.

The fourth name mentioned by people close to Trump was Paul Atkins, That’s according to three people familiar with the conversation.

Atkins served as SEC commissioner under former President George Bush be opposed to The agency has a policy of imposing large fines on companies that violate securities laws. He played a key role on Trump’s transition team in 2016, helping shape his laissez-faire approach to financial regulation.

“It’s a mess out there right now,” Atkins said of the SEC in an interview with CNBC. “I think there’s a lot of work that needs to be done. There certainly needs to be changes.”

Atkins said he has not heard from Trump or his team about a potential position at the agency. Asked whether he would take the SEC job if Trump wins, he responded: “Who knows?”

If Trump is elected, the SEC and cryptocurrency policy as a whole may depend on more than just the chairman of the commission.

At least 16 former Trump administration officials are now lobbying for the crypto industry, according to OpenSecrets.

If a Trump administration takes office, they are likely to be popular applicants for key positions at the Securities and Exchange Commission, Commodity Futures Trading Commission and Federal Trade Commission, all of which could have an impact on cryptocurrency regulation.

Doerr and Conway have been supporters of Democrats, including Biden, for more than a decade. Tour A fundraiser was held for Biden in February. Conway has donated $600,000 to Future Forward, a pro-Biden political action committee, according to Federal Election Commission records.

Both Dole and Conway have investments in cryptocurrencies. Conway’s venture capital company SV Angel goes public Coin Library Doerr’s Kleiner Perkins firm has been investing in crypto businesses for years as part of its portfolio, including recently participating in a $2 million seed round supporting the cryptocurrency data analysis Start, tilt.

A White House spokesperson defended the president’s handling of cryptocurrencies and said administration officials met with various stakeholders related to the industry.

White House spokesperson Robyn Patterson said: “President Biden has proposed the first-ever comprehensive approach to support digital asset innovation while protecting consumers and investors from the risks associated with new technologies. .

The White House did not respond to warnings it had received about its treatment of the cryptocurrency industry, nor did it respond to a follow-up request for comment on the meeting Zients held at Doerr’s home.

Conway and Doerr did not respond to requests for comment.