Cathie Wood Backs Trump’s Crypto Plans, Citing U.S. Tech Revival

Cathie Wood: US Crypto Edge Nearly Lost Before Trump's Reelection

Ark Invest founder Cathie Wood, renowned for her stock-picking expertise, has suggested that the United States nearly lost its competitive edge in cryptocurrency before Donald Trump’s reelection bid.

Overregulation and Talent Exodus

Wood highlighted overregulation as the primary challenge facing the U.S. crypto and tech sectors. “We drove a lot of talent away from the United States. We think that’s going to change with a focus on crypto and AI,” she stated during an interview with CNN’s Inside Politics Sunday.

Key Technology Platforms

According to Wood, five major technological platforms will shape the future: crypto, digital assets, robotics, energy storage, and multi-omics sequencing. She emphasized that the U.S. must lead in these fields, much like it did during the early days of the Internet. She expressed optimism that regulatory reform would pave the way for significant advancements in both cryptocurrency and artificial intelligence.

Trump’s Crypto-Friendly Reforms

Wood’s optimism stems from Donald Trump’s historical economic policies and his recent support for cryptocurrencies. Trump’s proposals include diminishing the Securities and Exchange Commission’s (SEC) influence in favour of the Commodity Futures Trading Commission (CFTC).

By expanding the CFTC’s role to oversee digital assets, his administration aims to undo regulatory measures implemented during President Biden’s term. This strategy includes potentially appointing former CFTC Chair Chris Giancarlo as a “crypto czar” to create a supportive regulatory framework for blockchain and digital asset growth.

Leadership Change at the SEC

Wood noted that a change in leadership at the SEC could foster a friendlier environment for digital assets. She believes this shift would encourage mainstream adoption and drive growth in the sector. Trump’s approach to limiting the SEC’s role aligns with his broader plan to support emerging technologies like blockchain.

Cathie Wood’s Support for Trump

In June, Cathie Wood publicly endorsed Trump, citing economist Arthur Laffer’s analysis of Trump’s economic policies from 2017 to 2020. Laffer had described this period as one of the strongest economic performances in U.S. history, excluding the impact of the COVID-19 pandemic.

Crypto as a Hedge Against Inflation

Wood, a prominent advocate for Bitcoin and digital assets, sees them as essential tools for combating inflation. She pointed out that Bitcoin is particularly valuable in countries with unstable currencies, offering a hedge against economic uncertainty.

Conclusion

Cathie Wood’s insights underline her belief in Trump’s potential to reshape U.S. crypto policy. With a focus on regulatory reform and leadership changes, she foresees a favourable environment for cryptocurrency and technological innovation.