Tether Co-Founder William Quigley’s Perspective on Cryptocurrency Regulations During Trump’s Second Term

Donald Trump’s re-election has generated anticipations of significant changes in U.S. cryptocurrency regulations.

Current executive orders suggest that regulatory changes may soon impact the cryptocurrency sector.

In a discussion with Cryptonews, William Quigley, co-founder of Tether and WAX, shared his perspectives on what the next four years under Trump could signify for the industry.

Quigley indicated that the administration’s supportive stance towards cryptocurrency, along with key appointments and legislative initiatives, could lead to more defined regulations.

He also emphasized the importance of the private sector in influencing the future of cryptocurrency regulations.

Trump’s Second Term and the Future of Crypto Regulation

Trump’s indications of possible changes in cryptocurrency regulations stand in stark contrast to the inconsistent approaches of previous administrations.

Under Trump, there may be a focus on appointing pro-crypto individuals and encouraging private sector participation in digital assets.

Quigley commented on this transition, stating, “The Obama administration and the Biden administration were cautious regarding crypto, and Congress was not advancing any regulations. They did not seem to view it as significant or particularly problematic, except for one federal agency, the SEC.”

“The Trump executive order is very favorable towards crypto, with the assertion that Trump wants the U.S. to be a leader in the crypto industry,” Quigley added.

These changes are anticipated to foster a more predictable regulatory environment, reducing uncertainty and promoting market stability.

As the administration progresses, regulatory decisions will shape how the government engages with the digital currency sector.

Establishing the Digital Asset Working Group

President Trump’s executive order resulted in the formation of the President’s Working Group on Digital Asset Markets within the National Economic Council.

This group is responsible for evaluating existing regulations and suggesting clearer guidelines for the digital asset sector.

Quigley expressed his thoughts on the impact of these developments, stating, “The Trump executive order has created and will establish an omnibus crypto regulatory framework in the United States. If that occurs, I foresee all the other major countries in the world moving in a similar direction.”

“To me, [the executive order] seems quite swift considering there’s much to contemplate here, but I believe before the Trump term concludes, individuals will have the ability to utilize stablecoins much more freely than they do now,” Quigley remarked.

The working group is tasked with developing a federal regulatory framework specifically for digital assets like stablecoins, which will involve detailed considerations on how these assets are issued and operated within the U.S.

The crypto industry is awaiting the Working Group’s report, expected within 180 days, looking forward to targeted legislative proposals that could redefine the regulatory landscape and enhance market stability.

Quigley Discusses Bank Reluctance

The U.S. banking sector remains cautious regarding cryptocurrency due to ambiguous regulatory guidance and the risk of severe penalties.

This reluctance continues despite more positive comments from figures such as Federal Reserve Chairman Powell, who recently praised banks for their handling of cryptocurrencies.

JUST IN: Federal Reserve Chair Jerome Powell states “banks are fully capable of serving crypto customers.” pic.twitter.com/IiFJhA8Qg3

— Watcher.Guru (@WatcherGuru) January 29, 2025

William Quigley pointed out the key issues, stating, “Banks are still slow. This may be due to the extensive confusion over the years regarding what they are permitted to do and what they are not.”

“Any positive messaging from the White House and the Federal Reserve is beneficial for us,” Quigley further explained. “However, for these institutions, I believe they require clear and definitive guidance.”

He also reflected on the broader consequences of this hesitation, stating, “In any major financial institution in the United States, there are thousands, perhaps tens of thousands of employees who are primarily compliance-oriented. There are numerous regulatory bodies at the federal level, and some relevant ones at the state level, many of whom either provide no guidance on crypto or offer conflicting guidance.”

#Bitcoin took 14 years to reach $100K. $200K may arrive by summer 2025. pic.twitter.com/KK1iIkAaSS

— William E. Quigley (@WilliamEQuigley) January 15, 2025

In traditional banking systems, clarity and compliance remain crucial. The banking sector’s cautious approach to cryptocurrency may evolve in the future, but currently, this wariness acts as a significant barrier to broader acceptance and integration of these technologies.

The Need for Congressional Action in Crypto Regulation

Cryptocurrency regulation in the U.S. suffers from inconsistencies due to multiple agencies managing different aspects without a unified approach.

This fragmented oversight has underscored the necessity for a single regulatory body to provide clear and consistent governance.

Trump’s recent executive order is viewed as a crucial step that could prompt Congress to establish a unified regulator, which may help alleviate confusion and solidify the U.S.’s position in the global crypto market.

“We can’t have the IRS categorizing it as property, the CFTC declaring it a commodity, the SEC labeling it a security, and then the U.S. Treasury continuously stating, no, these are currencies, and that has persisted for years,” Quigley stated.

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