US President-elect Donald Trump is positioning the US as a global leader in artificial intelligence (AI) and cryptocurrency by appointing key figures to lead these initiatives. The Trump administration is promising sweeping reforms in technology regulation, aimed at boosting innovation while addressing the challenges that AI and crypto adoption.
The Role of AI and Crypto Czar
David Sacks, former COO of PayPal and founder of Craft Ventures, will serve as White House AI and Crypto Czar. In this role, Sacks will shape US policy on AI and cryptocurrency, two critical areas for global competitiveness. Writing about Truth Social, Trump emphasized Sacks’ mandate to “guide policy” and “ensure free speech online.”
Sacks will also lead the Presidential Council of Advisors for Science and Technology (PCAST), responsible for advising on science, technology and innovation policy. His focus will include establishing a clear legal framework for the cryptocurrency industry, ensuring the United States becomes a hub for digital asset innovation.
AI Policy: Reverse Biden’s Executive Order
The Trump administration plans to rescind President Joe Biden’s executive order on AI, which emphasized ethical AI development and set privacy standards. According to Trump, these rules hinder innovation and impose restrictive policies. Instead, the Trump administration is advocating a framework for AI rooted in free speech and economic opportunity.
Elon Musk, CEO of Tesla (NASDAQ:TSLA) and X (formerly Twitter), will lead the Department of Government Efficiency (DOGE) to cut red tape and fast-track technology-focused reforms. Musk, a co-founder of OpenAI, has been instrumental in integrating AI through tools like ChatGPT.
The crypto regulatory landscape
Trump has vowed to transform the US into the “crypto capital” and a “Bitcoin superpower,” a sharp departure from outgoing SEC Chairman Gary Gensler’s approach. Gensler’s tenure was marked by strict crypto regulations, earning him a reputation as “anti-crypto”.
Trump’s nominee for SEC chairman, Paul Atkins, is seen as “pro-crypto” and is expected to promote a regulatory environment conducive to the growth of digital assets. Atkins, a former SEC commissioner, will play a key role in resolving jurisdictional disputes between agencies such as the SEC and the Commodity Futures Trading Commission (CFTC).
The US regulatory landscape remains fragmented compared to the EU, where the Markets in Cryptoassets Regulation (MiCAR) provides a unified framework. The Trump administration aims to introduce a coherent policy to strengthen US crypto leadership.
Economic consequences of DOGE
The Department of Government Efficiency (DOGE), led by Musk and biotech entrepreneur Vivek Ramaswamy, aims to eliminate bureaucratic inefficiencies and cut federal spending by $2 trillion. Trump likens this initiative to the Manhattan Project, reflecting its importance in reshaping governance and technology policy.
DOGE will operate outside of formal government structures and offer guidance to optimize federal agencies and promote innovation. Musk and Ramaswamy are set to finish their work by July 4, 2026, potentially redefining the role of public-private partnerships in governance.
The broader impact of Trump’s policies
Trump’s integration of AI and crypto into US politics signals a paradigm shift. By prioritizing innovation and reducing regulatory barriers, the administration seeks to position the United States as a leader in technological advancement.
But critics argue that deregulation could exacerbate the risks such as privacy violations, fraud and social injustice. Biden’s executive order warned of these dangers, emphasizing the need for safeguards in AI development and crypto adoption.
As the Trump administration balances innovation with accountability, the global tech community will be closely monitoring how these policies affect the trajectory of the AI and crypto industries.
Conclusion
Trump’s focus on AI and crypto underscores the growing importance of these technologies in shaping the future of the American economy. With key appointments like David Sacks and Paul Atkins, along with Musk’s leadership at DOGE, the administration is set to redefine the US tech landscape.
While the potential for growth is huge, striking the right balance between innovation and regulation will be critical to ensure sustainable progress. The world is waiting to see if these bold initiatives can really make America the global leader in AI and crypto.
Featured image: Freepik
