Cathie Wood Says SEC Shakeup Could Ignite U.S. Economic Growth

ARK Invest CEO Cathie Wood anticipates that significant shifts in U.S. regulatory agencies, particularly the Securities and Exchange Commission (SEC), could spark a wave of economic growth and unleash innovation across emerging technology sectors. Wood, known for her forward-thinking stance on tech and disruptive innovation, shared her thoughts in a video posted by ARK Invest on November 11, suggesting that “defanging the SEC, FTC, and other agencies” might be the catalyst for robust U.S. economic expansion.

Wood remarked that a “changing of the guard” at regulatory bodies like the SEC and Federal Trade Commission (FTC) could signal a fresh approach toward innovation. According to Wood, SEC Chair Gary Gensler’s policies have driven substantial talent overseas, impacting the U.S. digital asset space. However, with President-elect Donald Trump signaling a pro-crypto stance, including plans to establish a Bitcoin strategic reserve, Wood foresees a reversal of restrictive policies that could stimulate sectors such as DeFi, blockchain, and artificial intelligence.

“We expect an explosion in productivity growth, especially among sectors like robotics, energy storage, and AI,” Wood noted, emphasizing that regulatory changes could unlock trillions in GDP by fostering convergence across transformative technologies. Specifically, Wood highlighted autonomous mobility, healthcare innovation, and digital assets as sectors primed to thrive under deregulated conditions.

Drawing parallels to the 1980s and 1990s, Wood cited these decades as the “golden age” for active equity investing, noting that a climate of deregulation and tax incentives could usher in a similar era of economic vigor. Trump’s proposed tax cuts and low interest rates, she added, would likely support rapid economic development and investor confidence in high-growth industries.

Wood’s optimism mirrors that of venture capital firm Andreessen Horowitz (a16z), whose experts recently expressed enthusiasm for a friendlier regulatory landscape. Miles Jennings, Michele Korver, and Brian Quintenz of a16z Crypto voiced confidence in the incoming administration’s ability to foster innovation and facilitate growth in the U.S. crypto ecosystem.

If regulatory reforms proceed as Wood and a16z predict, the shift could drive substantial investment into U.S.-based tech sectors, potentially positioning the country as a leader in the next wave of digital and technological innovation.

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