As President-elect Donald Trump gets ready to take office on January 20, 2025, the cryptocurrency sector is eagerly anticipating a transformative period in regulatory practices. The Blockchain Association, a nonprofit dedicated to advancing digital asset innovation and creating a conducive policy atmosphere, has proactively reached out to the new administration and Congress to express its strategic priorities.
Strategic Recommendations for the First 100 Days
In a comprehensive letter authored by Kristin Smith, CEO of the Blockchain Association, the organization articulated its vision for a more favorable regulatory environment under Trump’s leadership. Smith pointed out that American crypto entrepreneurs have long grappled with a challenging regulatory atmosphere, often driving them to seek opportunities abroad. She emphasized that Trump’s presidency holds the promise of altering this course, potentially re-establishing the United States as a leader in technological advancement, with digital assets at the forefront.
Establishing a Robust Regulatory Framework
The Blockchain Association has outlined a series of essential steps to be undertaken during Trump’s initial 100 days in office to bolster the domestic digital asset sector. Chief among these is the creation of a comprehensive regulatory framework for cryptocurrencies. Smith advocates for a bipartisan legislative approach concerning market structure and stablecoins, which would foster innovation while safeguarding consumer interests.
Addressing Banking Access for Crypto Firms
Another critical issue raised in the letter is the cessation of what Smith describes as the “debanking of cryptocurrency companies.” She argues that businesses and users have been unjustly deprived of crucial banking services, which are indispensable for fundamental operations such as employee remuneration and tax payments.
Revamping Leadership in Key Financial Institutions
The letter also emphasizes the need for new leadership at pivotal financial institutions. It calls for appointing a new chair for the Securities and Exchange Commission (SEC) and repealing SAB 121, the agency’s accounting guidelines perceived as unfavorable toward the crypto industry. Smith contends that fresh leadership at the SEC is vital for establishing a fairer and more transparent regulatory framework, moving away from the previous administration’s regulation-by-enforcement strategy.
Reforming Treasury and IRS Policies
The Blockchain Association also advocates for appointing new leaders within the Treasury Department and the Internal Revenue Service (IRS). Smith highlights the current inconsistent tax treatment of digital assets and warns that proposed regulations, like the Broker Rule, could drive promising companies out of the United States.
Proposing a Public-Private Crypto Advisory Council
Finally, the organization proposes the creation of a crypto advisory council that would collaborate with Congress and federal regulatory bodies. Such partnerships are deemed crucial for crafting informed regulations that both protect consumers and nurture industry growth. In her conclusion, Smith reaffirmed the Blockchain Association’s commitment, along with its nearly 100 member organizations, to collaborate with Trump’s administration. She believes that by adopting these recommendations, the U.S. can reclaim its position as the world’s crypto powerhouse, heralding a new era of financial and technological progress.
The daily chart indicates the total crypto market cap valuation hitting the $3.24 trillion milestone. Source: TradingView.com
