In a significant move today, the Blockchain Association, representing nearly 100 members, reached out to President-elect Trump and the incoming Congress. Their message: priorities for the crypto industry that deserve attention in the administration’s first 100 days. With the backdrop of a pivotal election, the industry is hopeful for a regulatory landscape in the United States that is more conducive to innovation under Trump’s guidance.
Trump’s Potential to Transform the Regulatory Landscape
Historically, American crypto innovators have faced numerous challenges, often being pushed offshore due to stringent regulatory environments. The association believes that the change in leadership in Washington, D.C., holds promise for altering this scenario. By seizing this opportunity, the administration can foster a more supportive domestic digital asset economy. The association has outlined five critical steps to achieve this goal in the early days of the new term.
The Five Steps to Foster a Supportive Regulatory Environment
The initial step is to establish a comprehensive crypto regulatory framework. This involves creating a market structure and stablecoin legislation through a bipartisan Congressional effort. Such a framework would encourage innovation while safeguarding consumer interests.
Next, the association urges an end to the ‘debanking’ of crypto entities. Crypto companies and users have faced unwarranted denial of access to essential banking services, hampering their ability to manage payroll, vendors, and taxes. Ceasing this practice is imperative for the industry’s health.
Another vital measure is the appointment of a new SEC chair and the reversal of SAB 121. The existing SEC’s approach has been perceived as punitive, targeting the crypto industry with an enforcement-centered strategy. New leadership is necessary to cultivate a fairer, more transparent regulatory climate.
The association also emphasizes the necessity for fresh leadership at the Treasury Department and IRS. The current tax treatment of digital assets is inconsistent, with proposed rules like the Broker Rule threatening to drive innovation offshore. A supportive environment for developers and a commitment to privacy are essential priorities.
Lastly, the association advocates for the formation of a crypto advisory council. This body would collaborate with Congress and federal agencies to establish balanced regulations that protect consumers while supporting industry growth. Public-private partnerships are crucial in crafting intelligent policies that benefit both the industry and the public.
Kristin Smith, CEO of the Blockchain Association, expressed optimism about these initiatives, stating, “President-elect Trump’s vision to make America the crypto capital of the world is shared by the entire crypto industry – including its founders, developers, and innovators. The realization of this vision is possible with President-elect Trump’s leadership in Washington, alongside the most pro-crypto Congress in history.”
