In the latest development today, the Blockchain Association, on behalf of nearly 100 members, has sent a letter to President-elect Trump and the new Congress, outlining cryptocurrency priorities to consider in the first 100 days. The letter notes that after the historic election, the cryptocurrency industry is hopeful and optimistic about a friendlier regulatory environment in the United States under Trump’s leadership.
Trump's potential to change the hostile regulatory regime
The report notes that, for many years, American cryptocurrency innovators have been targeted and, in some cases, pushed abroad by a hostile regulatory regime. The Association believes that Trump's emergence in Washington, DC, has the potential to change that reality. The report shared five immediate steps that could be taken to support the domestic digital asset economy in the first 100 days.
Five steps to achieve a friendly legal environment
The top priority noted is to establish a regulatory framework for cryptocurrency. It notes that a stable market structure and laws regarding cryptocurrency could be a bipartisan effort led by Congress, establishing a framework suitable for digital assets, encouraging innovation while protecting consumers.
Secondly, note 'End the withdrawal of cryptocurrency from banks'. Note that because cryptocurrency companies and users have been unjustly denied access to critical traditional banking services to pay employees, suppliers, and taxes, this practice needs to end immediately.
Thirdly, the appointment of a new SEC chair and the repeal of SAB 121, known as 'the agency's punitive cryptocurrency accounting guidance'. They note that the cryptocurrency industry has faced hostility from the SEC and the SEC's enforcement-based regulatory approach for a long time. Therefore, new leadership at the SEC is crucial to ensure a fairer, more transparent, and more effective regulatory environment.
The next priority listed is a new leadership at the Department of the Treasury and IRS. It indicates that tax treatment of digital assets is unusual and proposed rules, such as the Broker Rule, could push promising companies and projects in the industry completely abroad. It is also important that the Department of the Treasury creates an environment that welcomes software developers and prioritizes privacy for all Americans.
Finally, it proposes the establishment of a cryptocurrency advisory council to work with Congress and federal regulatory agencies. It emphasizes that public-private partnerships are crucial to establishing smart rules that benefit the industry while still protecting consumers.
"President-elect Trump's vision of turning America into the world's cryptocurrency capital is a shared hope of the entire cryptocurrency industry – and its founders, developers, and innovators. And that can become a reality when President-elect Trump arrives in Washington, along with the most pro-cryptocurrency Congress in history," said Kristin Smith, CEO of the Blockchain Association.
