KEY TAKEAWAYS
- Rick Wurster at Charles Schwab shared plans to add crypto spot trading to the platform in the foreseeable future.
- Unclear regulations and the hostile approach of some lawmakers are the biggest obstacles to crypto adoption for financial institutions in the US.
- Hester Peirce and Dan Gallagher are the most likely candidates to replace Gensler as the SEC Chair.
Rick Wurster, the soon-to-become-CEO of investment firm Charles Schwab, confessed he doesn’t own any crypto and now ‘feels silly’ for it.
Once US lawmakers develop clear digital assets regulations, Charles Schwab plans to introduce spot crypto trading to the platform.
To Wurster’s relief, positive regulatory changes are already underway.
Schwab Expands Crypto Services
The current regulations don’t make it easy for institutions to offer crypto-related services. Vague definitions, regulation by enforcement, and lack of industry-specific tools (for example, the Howey test the SEC uses for securities is poorly suited to crypto) are the main roadblocks on the US’ path to innovation.
Wurster admits he’s never bought crypto and has no plans to do so now. However, he wants to streamline the process for Schwab clients wishing to invest in crypto directly.
Charles Schwab already rolled out crypto exchange-traded funds (ETFs) and futures contracts.
Regulated financial vehicles that provide indirect exposure to crypto fall under stricter oversight and compliance standards, so they are less risky – but often less profitable than owning your crypto.
Spot trading is the next step toward becoming a comprehensive digital asset investment platform.
Wurster expects Trump’s administration to ease compliance for firms offering direct ownership of digital assets.
Next SEC Chair: Unknown
Trump might be the most controversial of all US presidents, so contrasting reactions to his victory were to be expected.
While crypto investors are celebrating, SEC Chair Gary Gensler is quietly seething with anger and promised to resign on Trump’s inauguration day.
Gensler’s regulation-by-enforcement approach to crypto turned him into public enemy #1. This didn’t spook Gensler, given that Biden’s administration shared his views, but with the new president came big changes.
As his final contribution, Gensler urged lawmakers to create clear rules for crypto sales and exchanges.
Gensler believes regulations should promote transparency and investor protections, including proper disclosures. He drew parallels with the Great Depression to illustrate the consequences of uninformed investing.
Gensler’s replacement is yet unknown. However, rumors have it Trump is considering Dan Gallagher, the Chief Legal Officer at Robinhood, who also served as a commissioner at the SEC from 2011 to 2015.
Another candidate for Gensler’s chair is Hester Peirce, a sitting SEC commissioner and a vocal advocate for crypto. Besides, Pierce is a Republican, which could earn her a point in Trump’s eyes.
New Chapter for Crypto
2025 looks like the beginning of a new era for crypto in the US. A change in leadership will likely bring favorable policies and encourage institutions like Charles Schwab to expand their crypto offerings.
The question now is – who will fill Gensler’s shoes? We’ll find out within the next two months.
References
- Charles Schwab Eyes Spot Crypto Trading Once Regulations Change (Bloomberg)
- Gensler Makes Pitch on Crypto Rules Ahead of New Trump Tack (Bloomberg)
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Lora is a writer based in Ireland. Her background in finance and interest in technology helps her present complex concepts in an intelligible and fun way, which is especially useful when it comes to the world of cryptocurrency and blockchain technology. Starting as an agency writer, she soon branched out to freelance and later launched a family-run digital marketing agency. In her spare time, Lora attends dance classes or immerses in reading, preferring technology news or postmodern literature.
View all articles by Lora Pance
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