Trump’s Pro-Crypto Agenda: Will Antitrust Regulators Keep Decentralized Cryptocurrency Competitive?

The potential role for antitrust enforcers in President Trump’s pro-crypto agenda is not new. In a 2020 speech, former Assistant Attorney General Makan Delrahim, President Trump’s top antitrust enforcer at the DOJ during his first term, emphasized the need for antitrust enforcers actively to protect competition in the blockchain industry. Delrahim warned against allowing “entrenched monopolists” to stifle the threat of blockchain technology to their business models. Delrahim also launched an initiative to educate DOJ staff attorneys about blockchain technology through an online course at the MIT Sloan School of Management. After the end of President Trump’s first term, Delrahim continued speaking about competition issues facing the blockchain industry while in private practice. Notably, Delrahim is reportedly advising Trump’s transition team on antitrust matters and is a potential candidate for the chair of the Federal Trade Commission (FTC). The FTC also established a Blockchain Working Group during Trump’s first administration, signaling a broader interest in the technology’s implications for competition.

This interest in blockchain’s impact on competition extended into President Biden’s administration. His 2022 executive order on digital assets encouraged the DOJ and FTC to examine the potential effects of digital asset growth on competition policy. However, the industry’s relatively stagnant growth during the Biden presidency offered few opportunities for antitrust enforcers to delve into the intersection of blockchain and competition law. Industry leaders attribute this stagnation to a lack of regulatory clarity and perceived over-enforcement of securities and commodities laws, which they believe stifled investment, development, and innovation.

President-elect Trump has pledged to reduce regulation of digital assets in his second term – most significantly through the appointment of a crypto advocate in Paul Atkins as the chief industry regulator – a move expected to stimulate investment and activity in the sector. This scenario could position the antitrust agencies as key players in shaping the competitive landscape.

Potential Focus Areas for the FTC and DOJ

The FTC and DOJ may examine specific aspects of the blockchain and cryptocurrency industries competition issues could arise. Cryptocurrency exchanges, for instance, could face heightened scrutiny if market power becomes concentrated among a few large players. As exchanges play a crucial role in consumer access to digital assets, conduct in this space that restricts user choice or innovation could draw the interest of antitrust regulators. The infrastructure of blockchain itself may also attract attention if key participants dominate specific layers, such as blockchain-as-a-service providers or protocol development, creating potential bottlenecks or barriers for new entrants.

Additionally, decentralized finance (DeFi) platforms may present unique competitive risks. Although DeFi protocols are designed to operate autonomously, control can sometimes be concentrated among early investors or governance token holders, creating an environment where competition among platforms could be subtly constrained. The FTC may scrutinize these governance structures, especially whether cross-ownership across platforms may reduce competition for fees.

Potential Consolidation in Blockchain and Cryptocurrency

Another factor the FTC and DOJ may consider is the industry’s projected consolidation. Many analysts predict that mergers and acquisitions in blockchain and cryptocurrency will accelerate in the coming months as the industry grows and matures under President-elect Trump. This consolidation trend could be fueled by both increased investment and the competitive pressure to scale up, particularly as larger tech firms expand into blockchain. As larger companies absorb smaller, innovative firms, antitrust authorities may play a critical role in examining these deals to preserve competitive dynamics within the sector.

Consolidation could raise competition concerns, especially if major players accumulate outsized influence over critical segments, such as transaction processing, asset custody, or digital identity. The FTC and DOJ may closely evaluate the impact of mergers on both consumers and smaller competitors, balancing the need for scalability with the preservation of market competition.

Competition Issues for Decentralized vs. Centralized Organizations

Finally, it is worth noting that competition issues may manifest differently for decentralized, open protocols compared to traditional corporations. While traditional corporations are typically controlled by centralized leadership structures, decentralized protocols are often governed by distributed communities, with decisions made collectively by token holders or participants. This can complicate antitrust evaluations, as decentralized governance may lessen the risk of monopolistic behavior. However, consolidation of governance power—such as when a few entities hold significant influence over protocol decisions—could still lead to antitrust concerns.

Decentralized entities also pose unique regulatory challenges, as their governance models and open-source nature can blur traditional boundaries of ownership and control. Additionally, some networks may employ self-regulation mechanisms that could limit competition and raise antitrust questions. If such entities coordinate or restrict market access in ways that resemble traditional anticompetitive practices, the FTC and DOJ might need to explore new frameworks for assessing competitive harm in decentralized ecosystems.

Overall, the blockchain and cryptocurrency industries are poised to experience significant growth under President Trump’s second administration, and the antitrust agencies may play a key role in preserving competition within that rapidly evolving sector.