As the United States prepares for a new chapter under President Donald Trump, the cryptocurrency industry is cautiously optimistic. For years, the industry has had a difficult regulatory environment that has caused numerous inventors to offshore.
Emphasizing the value of the first 100 days in office, the Blockchain Association has presented a clear road to promote a friendlier climate for digital assets in a letter to the president and Congress under Trump’s administration seizing the reins. Blockchain Association CEO Kristin Smith stated:
“President-elect Trump’s vision to make America the crypto capital of the world is a hope shared by the entire crypto industry – and its founders, developers, and innovators. And it can be realized with President-elect Trump’s arrival to Washington, along with the most pro-crypto Congress in history.”
Proposals to Restore U.S. Leadership in Global Crypto Innovation
Representing more than 100 members, the Blockchain Association has proposed five main actions to guarantee the United States takes back its leadership in technology innovation globally.
The group emphasizes how urgently a thorough crypto legislative framework is needed and calls on Congress to spearhead bipartisan initiatives promoting innovation while protecting consumers.
The letter also urges a stop to discriminatory banking policies against crypto businesses, which have hampered their capacity to pay taxes, staff, and vendors, therefore impeding development in this newly formed sector.
The Securities and Exchange Commission’s (SEC) leadership presents yet another urgent concern. The group highly advises selecting a new SEC head and reversing the divisive SAB 121 accounting rules, which have been deemed to be punitive to the crypto sector.
This fits the latest reports about Gary Gensler, the chairman of the Securities and Exchange Commission, scheduled for January 2025 resignation. Through enforcement activities, the Gensler-led government recovered $2.7 billion for damaged investors during his tenure.
But his strategy of regulating via enforcement has drawn criticism since it leaves many in the sector disappointed by the lack of openness and clarity.
Addressing Tax Policies and Public-Private Collaboration
Emphasizing unusual tax treatments and policies like the proposed Broker Rule, which might drive beneficial projects overseas, the letter also stresses the need for fresh leadership at the Treasury Department and IRS. Long a point of contention for crypto pioneers, tax policy discrepancies cause needless hardship for firms negotiating an already unstable industry.
The group advises stressing privacy for all Americans and establishing friendly surroundings for software developers. At last, the Blockchain Association suggests creating a crypto advisory council to support public-private cooperation—which they believe to be essential for developing sensible rules.
These suggestions coincide with the period when Trump’s policies are generating controversy already.As we previously reported, renowned financial analyst Kevin Khang has cautioned that such policies may cause inflation, therefore influencing labor markets and perhaps raising operating expenses for the crypto sector.
Rising inflation might cause businesses in the blockchain space more expenses, which would make it more difficult for startups to obtain investment or compete.
On the other hand, according to CNF, Trump’s suggestion to name a “crypto czar” would provide much-needed regulatory clarification. This action is supposed to help institutional adoption of digital assets and simplify the scattered regulatory environment suppressing development.
