By Manya Saini
(Reuters) -Crypto exchange Coinbase on Wednesday added four high-profile members to its global advisory council, including former U.S. Senator Kyrsten Sinema and Chris LaCivita, co-campaign manager for President Donald Trump’s re-election.
Drafting a framework for the growth of the crypto sector has been a top priority for the Trump administration after years of enforcement actions that the industry has criticized as regulatory overreach.
“This move suggests Coinbase is positioning to have direct influence on policy discussions by aligning with individuals who have deep ties to both the Trump camp and traditional financial institutions,” said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors.
The crypto industry donated millions of dollars to support Trump’s return to the White House. Expectations of a more favorable regulatory setup powered bitcoin to record highs in 2024, surpassing $100,000 for the first time.
The new additions at Coinbase also include Bill Dudley, former president of the Federal Reserve Bank of New York and Luis Alberto Moreno, a global development and international finance expert.
“Crypto is now firmly on the radar of corporates, banks and institutions, weaving itself into the very fabric of our financial systems,” analysts at Bernstein said, adding that bitcoin remains on its path to $200,000.
Earlier this month, the U.S. Securities and Exchange Commission’s new leadership created a task force to develop a regulatory framework for crypto assets.
Trump has also named former PayPal executive David Sacks as his “White House A.I. & Crypto Czar.” The administration is expected to reshape U.S. policy on digital currency.
Support from Wall Street institutions and corporate titans such as Elon Musk as well as the approval of U.S. exchange-traded crypto funds have boosted the sector’s mainstream appeal.
Coinbase shares are likely to benefit from a further upside in bitcoin over the medium term, analysts at Mizuho wrote in a note. “Rising tide lifts all moats,” it said.
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)
