In an exciting development, the Blockchain Association, representing nearly 100 members, has taken a significant step by sending a letter to President-elect Trump and the new Congress. This communication outlines critical priorities for the cryptocurrency sector that should be addressed within the first 100 days of the new administration. The letter reflects a hopeful sentiment within the industry for a more favorable regulatory climate in the United States under Trump’s leadership.
Trump’s Potential to Transform the Regulatory Landscape
For years, American crypto innovators have faced challenges, often feeling pressured to move operations offshore due to what they perceive as a hostile regulatory environment. The Blockchain Association’s letter expresses optimism that Trump’s presence in Washington, D.C., could usher in a new era, altering this challenging reality. Recognizing the critical need for change, the association has outlined five pivotal steps that can be implemented to bolster the domestic digital asset economy during the crucial first 100 days.
Five Strategic Steps for a Supportive Regulatory Framework
The first priority emphasized is the establishment of a comprehensive crypto regulatory framework. The association suggests that creating market structure and stablecoin legislation can be a collaborative, bipartisan initiative led by Congress. This framework should be tailored to encourage innovation while ensuring consumer protection, striking a balance between growth and safety.
Another critical recommendation is to end the debanking of crypto companies. The current trend of denying crypto companies access to traditional banking services has hindered their ability to operate efficiently, affecting their capacity to pay employees, vendors, and taxes. This practice, deemed unjust, needs immediate cessation to foster a thriving crypto ecosystem.
The third step involves a strategic shift in leadership with the appointment of a new SEC chair and the rollback of SAB 121. The current SEC’s regulatory approach, characterized by enforcement rather than guidance, has been perceived as punitive by the crypto industry. Introducing new leadership is seen as vital to creating a fairer, more transparent regulatory environment that encourages innovation and growth.
Reforming leadership at the Treasury Department and IRS is another priority. The association notes that the tax treatment of digital assets currently lacks consistency, and some proposed rules could drive promising projects offshore. Creating a welcoming environment for software developers and prioritizing privacy protection for all Americans are essential steps in fostering a robust crypto economy.
Finally, the Blockchain Association advocates for the development of a crypto advisory council to collaborate with Congress and federal regulatory agencies. Public-private partnerships are seen as crucial for crafting intelligent regulations that both protect consumers and support industry growth.
Blockchain Association CEO Kristin Smith expressed the industry’s shared hope, stating, “President-elect Trump’s vision to make America the crypto capital of the world resonates with the entire crypto industry, including its founders, developers, and innovators. Achieving this vision is possible with President-elect Trump’s leadership and support from the most pro-crypto Congress in history.”
