As Donald Trump’s chances of winning the upcoming US Presidential election increase, the former president is gearing up for a major overhaul of crypto regulations. Florida Representative Byron Donalds revealed that he and Trump have discussed dismantling the regulatory “headlock” on the $2 trillion crypto market, which has faced hostility from the Biden administration.

Trump Plans to Oust SEC Chair Gary Gensler

Rep. Donalds, a key member of the House Financial Services Committee, criticized SEC Chair Gary Gensler for his aggressive crypto crackdown. Trump previously stated he would fire Gensler on “Day One” if elected. Donalds emphasized Trump’s readiness to “clean house” with a systematic approach to appointing qualified regulators.

The congressman slammed Gensler’s arrogance, stating, “The man thinks that he is smarter than everybody in the room collectively. That is a height of arrogance, in my view, that you cannot have in a chief regulator.”

Trump’s odds of winning have surged to over 60% on prediction markets, while Vice President Kamala Harris’s chances have fallen below 40%.

Proposed Crypto Regulatory Sandbox

Donalds, a former banker, revealed plans to work with Trump on implementing a “crypto regulatory sandbox.” This framework would allow startups and businesses in emerging, unregulated sectors to test products and services with minimal regulatory interference.

He highlighted the rapid pace of change in the crypto industry, noting that regulatory agencies lack the agility and expertise to keep up. Donalds stressed the need for industry players to help shape clear rules.

This move aligns with Trump’s recent foray into the crypto space with his DeFi project, World Liberty Financial, though initial demand for WLFI tokens has been modest.

Democrats’ Crypto Stance Questioned

While Kamala Harris attempts to court crypto voters with her “Crypto Reset” approach, Donalds remains skeptical of Democrats’ embrace of crypto. He argued, “They do not want any financial environment to exist in the United States where they do not have direct control and direct oversight.”

As the 2024 election approaches, the future of crypto regulation hangs in the balance, with Trump positioning himself as a potential ally to the industry.