The cryptocurrency market has also faced significant sell-offs as investors have become wary of risky assets.
Better-than-expected inflation data provided some relief, but it was not enough to make up for overnight losses. Bitcoin lost about 5% and Ethereum lost more than 13% in the past week.$ETH
Despite the market volatility, positive expectations for the future of cryptocurrency regulation were highlighted at the Blockchain Association’s Policy Summit in Washington, D.C. In an interview with CNBC’s Crypto World, Blockchain Association CEO Kristin Smith shared her expectations for regulatory priorities that lawmakers could focus on in 2025.
Smith said the industry is expected to have a “fresh start” with new leadership in Congress and key regulatory agencies. According to Smith, changes in the roles of the chair and deputy at institutions such as the SEC and CFTC will be very important developments that will shape cryptocurrency policy. While the Trump administration’s appointment of Atkins to the SEC and Bezic to the Treasury is noteworthy, the industry is also waiting for appointments to be made for other critical positions such as the CFTC leadership.
Smith shared President Trump’s video message to summit attendees, which included his administration’s commitment to encouraging innovation in the crypto space, saying, “It’s really uplifting to have someone at the highest level supporting us.” He also emphasized market structure legislation for 2025, noting that narrowly-scoped rules are needed to provide clarity to the industry. He called on the SEC and CFTC to use their existing authority to clarify which laws apply to certain areas of the crypto markets.
Smith said the goal is to “complete this process so people have a clear idea of what the future rules are,” and he also emphasized the importance of consumer protection and showing institutional investors that the U.S. crypto market is safe and mature.
Smith also touched on another topic gaining traction among policymakers and market participants: the idea of creating a strategic Bitcoin reserve for the U.S. Treasury. Such a reserve could help address long-term financial challenges and strengthen Bitcoin’s status as a rare and valuable asset. “This could be a unique opportunity for the U.S., given that there will only ever be 21 million Bitcoins,” Smith said.
As a result, despite the volatility in the markets, Smith remained optimistic about the sector and noted that there was increasing interest from crypto companies looking to expand in the US.