The Blockchain Association, a major organization representing cryptocurrency businesses in the United States, recently wrote a letter to former President Donald Trump and members of Congress. In the letter, the group expressed hope for a more supportive approach to regulating the cryptocurrency industry in the U.S.
The association highlighted the challenges faced by the crypto industry in recent years, noting that many American blockchain and cryptocurrency companies have struggled under strict and often unclear regulations.
In some cases, this has forced them to move their operations to other countries with more favorable policies. The association believes that new leadership in Washington, D.C., could change this and help the United States regain its position as a global leader in technology and innovation.
The association outlined several key actions it believes the government should take to support the cryptocurrency industry. First, it called for the creation of a clear and fair regulatory framework for cryptocurrencies.
This framework would include specific rules for stablecoins and would aim to strike a balance between encouraging innovation and protecting consumers. The group noted that such a framework could be developed through bipartisan efforts in Congress.
The association also pointed out that many crypto companies have been unfairly denied access to traditional banking services. This problem, known as “debanking,” makes it difficult for these businesses to pay employees, vendors, and taxes. The letter urged the government to put an end to this practice, as access to banking is critical for the industry’s growth.
Another recommendation was to appoint new leadership at the Securities and Exchange Commission (SEC). The group criticized the SEC’s current approach to regulating cryptocurrencies, which they described as overly harsh and unpredictable.
The association also requested that the SEC reconsider its accounting guidelines, which they believe unfairly target crypto companies.
It further called for changes at the Treasury Department and the Internal Revenue Service (IRS). It pointed out that tax rules for cryptocurrencies are inconsistent and that proposed regulations, like the “Broker Rule,” could push innovative companies out of the country.
The group also emphasized the importance of creating a welcoming environment for software developers and protecting the privacy of all Americans.
Lastly, the association suggested creating a crypto advisory council to improve communication and collaboration between the government and the crypto industry. This council could help design smart regulations that support innovation while ensuring consumer protection.
The Blockchain Association stressed the significance of the cryptocurrency industry for the U.S. economy, expressing a strong willingness to collaborate with the government. Their goal is to position the country as a global leader in financial technology and internet innovation. They hope these efforts will help the U.S. regain its leadership in the rapidly expanding world of digital assets.
This announcement follows the U.S. election, where Donald Trump was elected president. In the past two months, several developments have unfolded involving recent and upcoming changes.
As part of his 2024 agenda, Trump has proposed establishing a presidential crypto advisory council. This council aims to draft clear, innovation-friendly regulations for cryptocurrencies, addressing the industry’s demand for regulatory guidance.
Furthermore, on November 21, 2024, the Securities and Exchange Commission (SEC) announced that its Chair, Gary Gensler, will step down on January 20, 2025, at 12:00 p.m. Gensler, who began his tenure on April 17, 2021, shortly after the GameStop market events, concentrated on enhancing financial market rules to ensure fairness and reliability.
These actions align with efforts to prepare the industry and the nation for the incoming administration in 2025.
