The crypto industry spent a lot of money on the 2024 election, and that investment is about to pay off in the next Congress and administration.
For more than a decade, there has been a lack of clarity from federal regulators, especially as the Biden administration pursues crypto giants like Coinbase and Ripple for allegedly selling unregistered securities, prompting alarm among banks and investors. industry advocates were frustrated.
However, President-elect Trump, who once downplayed cryptocurrencies as a “scam,” embraced them on the campaign trail, becoming the first presidential candidate to embrace digital assets. On Capitol Hill, lawmakers on both sides of the aisle could send a comprehensive cryptocurrency bill to his desk during the next Congress.
“Next year we will have a bipartisan, pro-crypto Congress and a pro-crypto president, with smart policies across the finish line, including stablecoins and a market structure bill, that will continue to improve the U.S. crypto economy for years to come.” It is poised to shape the currency industry,” Kristin Smith, CEO of the Blockchain Association, told The Hill.
“Looking ahead to 2025, it is critical that the industry collaborate on these policy solutions and present a coherent vision to leaders in Washington. It is important to take advantage of this moment to secure the future.”
Here are some policies that are on the cryptocurrency industry's wish list.
Pass a comprehensive cryptocurrency bill
Several sweeping crypto bills have been introduced in both the House and Senate in recent years, but industry advocates tend to support them. Financial Innovation and Technology Act for the 21st Centuryalso called FIT21.
The more than 250-page bill would create guardrails for the industry and draw a clear line between regulators the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The law is “I’m very pro-encryption.” According to Stand with Crypto, a nonprofit advocacy group launched last year with support from Coinbase.
In May, FIT21 became the first major cryptocurrency bill to pass the House of Representatives despite opposition from SEC Chairman Gary Gensler.
The bill was never voted on in the Senate. That means lawmakers will have to start the legislative process again when Congress reconvenes in January.
Incoming House Financial Services Committee Chairman French Hill (R-Arkansas) told CNBC Last week, the Digital Asset Regulatory Structure Act was a “top priority” for Republican leaders, with Republican Majority Leader Steve Scalise (Louisiana) announcing legislation within the first 100 days of the 119th Congress. He said he plans to pass the bill.
“We need a market structure for digital assets. We don’t have the rules of the road. Under Chairman Gensler, we only had enforcement regulation, which is not conducive to America’s success.” No,” Hill said.
Gensler is an unpopular figure known for frequent enforcement actions against industry players, and the Trump administration is expected to take a softer stance toward the crypto industry than the Biden administration.
Appoint a crypto-friendly regulator
The president-elect's first appointments have industry leaders optimistic about future regulatory relationships.
playing cards Cryptocurrency supporters are excited Earlier this month, he nominated former SEC Commissioner Paul Atkins to replace Gensler, who announced last month that he would resign on Inauguration Day.
Atkins is known for actively embracing cryptocurrencies. When President Trump nominated Atkins, the president-elect said in a post on Truth Social that the former secretary “recognizes that digital assets and other innovations are essential to making America greater than ever.” “
On Sunday, he also announced the creation of a “Cryptocurrency Council.” this is, letter sent by smith Last month, it was addressed to the next president and members of Congress.
President Trump said the council will be chaired by “David O. Sachs, our White House AI and crypto czar.”
One of the biggest unresolved questions right now is who President Trump will choose to lead the CFTC. Candidates include former CFTC Commissioner Brian Quintenz, now head of policy at Andreessen Horowitz's crypto firm. CFTC Commissioner Summer Marsinger is a former top staffer for incoming Senate Majority Leader John Thune (R.S.D.). Josh Sterling, Partner at Milbank LLP. Neil Kumar, partner at Willkie Farr & Gallagher, said: Politico reported this week.
The Hill has reached out to President Trump's spokesperson for comment.
Ripple Chief Legal Officer Stuart Alderroti said in a statement to The Hill: “The US crypto war led by Gary Gensler’s SEC is over, leading to a healthy regulatory relationship between the industry and financial regulators. I look forward to that.” .
Rollback of SEC Crypto Accounting Guidance
The industry is also calling for a repeal of SEC guidance issued in 2022 that would require public companies to show crypto assets held on behalf of users as liabilities. This is because it poses a “significant increase in risk” for companies.
guidance known as SAB 121has become a thorny issue for the industry, as it is seen as crowding out financiers.
meeting sent a bipartisan resolution Despite reversing President Biden's guidance to his desk in May, Biden refused it“The Republican-led resolution would inappropriately constrain the SEC's ability to establish appropriate guardrails and address future issues.''
In a letter to Trump and members of Congress, Smith renewed his call for lawmakers to reverse “punitive, anti-cryptocurrency” guidelines.
“For too long, the crypto industry has been subject to a hostile SEC and enforcement regulatory approach,” Smith wrote.
