Cathie Wood, the founder and CEO of Ark Investment Management, has expressed strong support for the expected shift in U.S. regulatory policy under a second Trump administration, particularly regarding cryptocurrencies and digital assets.
Cathie Wood Welcomes ‘Looser Crypto Regulation’ Under Trump
Speaking to Bloomberg, Wood highlighted the importance of looser regulations to help the U.S. regain its standing in the cryptocurrency space, which she believes has been hindered by “too much regulation” under the current SEC leadership.
Wood cited outgoing SEC Chairman Gary Gensler’s tough stance on the industry as a factor that contributed to the U.S.’s loss of momentum in the global crypto race. She also emphasized the significance of seizing and harnessing technology platforms like artificial intelligence (AI) and cryptocurrencies, which she sees as essential for the country’s future economic growth.
“We almost lost our footing in the cryptocurrency world,” Wood remarked, underscoring her belief that these emerging sectors, along with robotics, energy storage, and multi-omic sequencing, will be pivotal for the U.S. to lead the way in innovation, much like it did with the internet.
According to Wood, the anticipated shift in regulatory policy, particularly with a focus on crypto and AI, would create a more favourable environment for digital assets and lead to increased mainstream adoption.
A more flexible regulatory approach could boost growth in the crypto sector and allow U.S.-based companies to remain competitive globally. Wood’s comments reflect a growing sentiment within the tech and financial sectors that clearer, more supportive regulation is needed to unlock the full potential of cryptocurrencies and related technologies.
Wood’s Support for Trump
In addition to supporting looser crypto regulations, Wood also discussed the broader implications of a second Trump presidency. She believes stock markets will begin to see more dispersed gains, with broader market participation replacing the concentration seen in the last four years, which were dominated by a small number of tech giants. This shift, she predicts, will benefit smaller and medium-sized businesses that are at the cutting edge of innovation.
Wood’s stance is largely shaped by Trump’s past economic policies, particularly his support for cryptocurrencies. Trump’s approach to digital assets has positioned him as a proponent of the sector, something that resonates with Wood and Ark Investment, which has been a vocal advocate for blockchain and crypto-related innovations.
Wood also highlighted the potential impact of a leadership change at the SEC, noting that such a shift would foster a more crypto-friendly climate, encouraging sector growth and mainstream adoption.
However, Wood acknowledged that under a Trump administration, the SEC’s role in regulating digital assets might be reduced. Instead, the Commodity Futures Trading Commission (CFTC) would likely take on a larger role in overseeing the crypto market, shifting the balance of regulatory power away from the SEC.
This move would reverse many of the regulations introduced during President Biden’s term, particularly those led by Gensler, who has been seen as a more cautious regulator when it comes to crypto.
In an earlier interview with CNBC, Wood also emphasized that clearer regulatory frameworks are crucial for boosting confidence in the cryptocurrency market.
She believes that regulatory clarity would alleviate concerns among investors and pave the way for broader adoption of digital assets, further cementing their role in the global financial system.