Trump eyes crypto-czar: Coinbase CEO backed for key role

President-elect Trump considers a White House Crypto-Czar, with Coinbase CEO Brian Armstrong backed as a frontrunner to shape US crypto policy.

The cryptocurrency world is buzzing with discussions about a potential "Crypto-Czar" role in the White House. President-elect Donald Trump is reportedly considering creating this position to guide US policy on blockchain and digital assets, signaling an effort to modernize crypto regulations. Among the names suggested, Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, has proposed Brian Armstrong, the CEO of Coinbase, for the role.

Hoskinson believes Armstrong’s expertise makes him a strong candidate. He emphasized Armstrong’s leadership at Coinbase, the largest cryptocurrency exchange in the United States, as evidence of his ability to navigate complex regulatory challenges. Hoskinson highlighted the need for a neutral, well-informed leader who understands the unique value of cryptocurrencies and can unite the industry while fostering innovation. Criticizing the Biden administration’s approach to crypto regulation, he described it as overly aggressive and focused on enforcement rather than collaboration.

Hoskinson also announced Operation Baseline, a project by IOHK to identify inefficiencies in US crypto regulations. Drawing on his experience in helping Wyoming pass 31 crypto-friendly laws, he expressed his willingness to work with lawmakers to modernize the regulatory framework.

The crypto community, however, remains divided on Armstrong’s suitability. Some support Hoskinson’s view, seeing Armstrong as a pragmatic choice capable of appealing to various stakeholders. Others are critical, citing his association with centralized entities like Coinbase and its perceived alignment with traditional finance (TradFi). Critics argue this could conflict with the decentralized ethos of the cryptocurrency movement.

Supporters highlight Armstrong’s experience and neutrality as valuable assets. One commenter noted that a non-partisan leader with ties across the crypto ecosystem would be ideal for the role. Armstrong’s work with Coinbase, which interacts with a broad range of crypto projects and stakeholders, positions him as a candidate with a holistic understanding of the industry.

Another potential candidate is Brian Brooks, former Binance.US CEO and former Chief Legal Officer at Coinbase. Brooks, who also served as Acting Comptroller of the Currency, has significant regulatory experience. He played a key role in integrating digital assets into the banking system and is respected for his efforts to bridge the gap between crypto and policymakers. His deep understanding of both the crypto industry and traditional financial systems makes him a strong contender.

Both Armstrong and Brooks bring unique strengths to the table. Armstrong’s pioneering role in crypto exchanges gives him a market-first perspective, while Brooks offers extensive experience in navigating regulatory landscapes. The debate over who should take on this role reflects broader challenges in balancing innovation with regulation.

Hoskinson sees this potential appointment as an opportunity for the US to establish itself as a global leader in blockchain and cryptocurrency innovation. He urged the industry to unite behind a common vision, focusing on fostering growth while addressing regulatory gaps.

Trump’s consideration of a Crypto-Czar reflects a growing recognition of the role digital assets play in the global economy. Whether Armstrong, Brooks, or another candidate is ultimately selected, the choice will significantly influence the future of US crypto policies. The outcome will also signal how the administration plans to balance the need for regulation with the drive for innovation in this fast-evolving space.