How Will the Trump Administration Impact the Blockchain Market?

Juan Llanos is an experienced risk, blockchain and financial compliance subject matter expert and certified anti-money-laundering specialist. He writes about risk and virtual currencies on his blog

  • Two big market failures over the summer, however, The DAO debacle and the Bitfinex hack, have yet to elicit a visible reaction from a regulator.  Many of us suspect that will happen in 2017.
  • Arguably, until now, serious FinTech innovation does not seem to have been a public policy priority in the US under either party. If the US has reluctantly begun to contemplate alternative licensing mechanisms for FinTech startups, it is a salutary unintended consequence of the apparent “FinTech innovation Cold War” triggered by the UK, Singapore and Switzerland.  But, trying to predict the policy direction and enforcement attitudes of the Trump administration is a challenge. The reason is that, in his own words, he is “so unpredictable”.
  • The US now risks losing its dominant position unless it too reluctantly addresses its “regulatory debt” issues and adapts its regulatory frameworks. Against this backdrop, both Trump and the Republican Congress are expected to take a laissez-faire stance on regulation. The questions are what sectors or policy objectives will be the new priorities, and whether enforcement would also be loosened up. Tax compliance enforcement is probably a good candidate for lax treatment.
  • The massive set of financial regulations known as Dodd-Frank is perceived to be heavy-handed and misguided, and Republicans already have a plan to replace it. The elimination of the Consumer Financial Protection Bureau, created by that statute, would benefit the blockchain industry, but would leave the individual states as the sole prudential regulators of money transmitters.
  • AML (anti-money laundering) and CFT (countering the financing of terrorism) regulations are the most harmonized globally, and the most difficult to change or ignore. They are, however, selectively enforced based on the authority and resources of each jurisdiction. Based on his campaign promises, Trump is bound to step up law enforcement and national security efforts. Based on his campaign promises, Trump is bound to step up law enforcement and national security efforts. Read more..

Nasdaq CEO Adena Friedman formerly Nasdaq’s president and chief operating officer, took over as CEO on Jan. 1

  • “For us, it’s a matter of making sure that we continue to take all of the new technologies that are available in the marketplace and bringing them into our markets and offering them out to our clients,” she said. Blockchain, a database that tracks all bitcoin transactions, is one such technology, Friedman said.
  • Despite the hurdle of federal regulation, a concern that is fading for many companies in the face of a more pro-business administration, Friedman said that the protection, speed and efficiency blockchain provides will turn skeptics around. tech issues to watch in 2017 – The Hill C.) announced the creation of a blockchain caucus that would focus on emerging digital currency technologies. Trump will also have some prominent Bitcoin enthusiasts in his circle, including Mulvaney. In December, Trump selected Mulvaney to head the …


What Do the Tech CEOs from Trump’s Sitdown Think of Bitcoin? – CryptoCoinsNews Others at the meeting who have not publicly shared much about their feelings on bitcoin or blockchain included Intel CEO Brian Krzanich, Oracle CEO Safra Catz, Amazon CEO Jeff Bezos, Cisco CEO Chuck Robbins and Facebook COO Sheryl Sandberg,.The Verge

Dear Mr. Trump: To ‘Cyber’ Better, Try the Blockchain – WIRED President-elect Donald Trump wants us to “cyber better,” and he says he’s serious about finding solutions for the nation’s increasingly fragile cybersecurity infrastructure. An often-overlooked (or unexpected) solution worth considering: open …


Donald Trump featured image source Gage Skidmore