Trump Administration Urged to Prioritize Blockchain Regulation by Blockchain Association

The Blockchain Association has presented a strategic blueprint to guide Donald Trump’s administration in navigating the rapidly evolving digital asset industry. In a comprehensive letter addressed to the incoming President and the new Congress, the association underscores the urgency of reforming the United States’ regulatory landscape to foster innovation while addressing challenges inherent in the cryptocurrency sector.

Central to the association’s proposal is the creation of a robust and transparent regulatory framework for digital assets. By leveraging bipartisan collaboration, the association calls on President Trump and Congress to prioritize legislation that promotes market structure clarity and the regulation of stablecoins. This initiative aims to stimulate innovation while safeguarding consumers against potential risks associated with digital assets.

The current regulatory environment in the United States has been marked by ambiguity, creating uncertainty and hindering the country’s position as a leader in the blockchain technology arena. The Blockchain Association argues that establishing clear legal guidelines is imperative for the nation to maintain its competitive edge globally. Furthermore, the association highlights the detrimental impact of debanking practices on crypto companies, emphasizing the necessity for these firms to access traditional financial services to meet obligations such as employee payments, vendor contracts, and tax responsibilities.

A significant focus of the association’s roadmap is the need for new leadership at key financial regulatory bodies, specifically the U.S. Securities and Exchange Commission (SEC) and the Treasury Department. The current regulatory approach, characterized by aggressive enforcement under SEC Chairman Gary Gensler, has been criticized for stifling innovation. Gensler has announced his intention to step down on January 20, 2025, coinciding with Trump’s inauguration. The Blockchain Association advocates for a regulatory shift towards a more collaborative and open approach under new SEC leadership.

At the Treasury Department, the association calls for balanced tax policies for digital assets and enhanced privacy protections. Additionally, it raises concerns about the Broker Rule, which it argues could drive businesses to relocate offshore, thus weakening the United States’ competitive stance in the global market.

An innovative component of the Trump administration’s strategy is the proposal to establish a crypto advisory council, a move supported by the Blockchain Association. This council would serve as a bridge between government agencies and the private sector, ensuring that digital asset policies are not only practical but also equitable. The proposed council is expected to collaborate with federal entities like the SEC, the Commodity Futures Trading Commission (CFTC), and the Treasury Department. It is also envisioned to spearhead strategic initiatives, such as the establishment of a bitcoin reserve, positioning the cryptocurrency as a critical asset for the U.S. economy.

The proposal has garnered optimism from industry leaders, including Ripple CEO Brad Garlinghouse, who anticipates a more supportive environment for the crypto industry under Trump’s leadership. In a recent interview, Garlinghouse expressed hope for a departure from the perceived adversarial stance of the Biden administration, foreseeing a more crypto-friendly regulatory landscape.

The Blockchain Association reiterates its commitment to working with Donald Trump and Congress to position the United States as a leader in cryptocurrency innovation. Their proactive approach aims to ensure that the next administration embraces the potential of digital assets while establishing a regulatory environment conducive to growth and security.

As the crypto industry continues to evolve, the association’s outlined priorities reflect an understanding of the need for strategic alignment between technological innovation and regulatory oversight. Their vision encapsulates a forward-thinking approach aimed at propelling the United States to the forefront of the global digital economy.