As President-elect Donald Trump prepares to assume office in January, Washington-based advocacy group Blockchain Association is seizing the moment to push for sweeping cryptocurrency and blockchain regulatory reforms. In a letter published on November 22, the group urged Trump to prioritize a bold five-point plan designed to position the United States as a global leader in digital assets innovation.
The letter, shared on the Association’s website, appeals to the incoming administration’s Republican-led government to address the challenges facing the U.S. crypto industry, which they argue has suffered under what they call a “hostile regulatory regime.”
“For years, American crypto innovators have been targeted and, in some cases, driven offshore by a hostile regulatory regime,” the letter reads. “Your arrival in Washington, D.C., has the potential to change that reality.”
A Five-Point Vision for Reform
The Blockchain Association’s five-point plan outlines a roadmap to overhaul the regulatory landscape for cryptocurrencies and blockchain technology. While ambitious, the plan assumes Trump can sidestep potential hurdles such as congressional gridlock or resistance from entrenched regulatory agencies.
- Establish a Fit-for-Purpose Framework: The Association calls for the development of a tailored regulatory framework for digital assets that balances innovation with consumer protection. They argue this approach would replace the government’s current “regulation by enforcement” strategy, which critics say stifles innovation and punishes businesses retroactively.
- End Debanking of Crypto Firms: The second recommendation urges the administration to stop financial institutions from debanking cryptocurrency businesses—a practice that has made it difficult for crypto companies to access banking services and operate within the U.S.
- Reform the SEC: The group advocates for new leadership at the Securities and Exchange Commission (SEC), specifically recommending the rollback of SAB 121, an accounting bulletin widely seen as restrictive by crypto insiders.
- Reshape Treasury and IRS Leadership: The Association calls for new leadership at the Department of Treasury and the IRS. Notably, Trump is reportedly considering Kevin Warsh, a former Federal Reserve Board member, for the Treasury Secretary role. If selected, Warsh would potentially transition to Federal Reserve Chair in 2026 when Jerome Powell’s term ends. The position of IRS Commissioner also hangs in the balance, with Republicans now holding control of Congress.
- Create a Crypto Advisory Council: Finally, the Association proposes the formation of a dedicated crypto advisory council to collaborate with Congress and federal regulatory agencies. The goal is to ensure ongoing communication and cooperation between lawmakers and the blockchain industry.
Trump’s Possible Picks for Key Roles
As Trump builds his cabinet, the crypto industry is watching closely. Howard Lutnick, CEO of Cantor Fitzgerald, has already been tapped as Secretary of Commerce, pending confirmation. Meanwhile, potential Treasury Secretary candidate Kevin Warsh’s background at the Federal Reserve suggests he could be a crypto ally, given his track record of advocating for financial innovation.
Leadership changes at the SEC and IRS remain critical for crypto advocates, as these agencies have wielded significant influence over the industry in recent years. The SEC’s aggressive legal actions, including cases against major players like Coinbase and Ripple, have been a point of contention. The IRS, meanwhile, has faced criticism over its lack of clear tax guidance for cryptocurrency holders.
The Stakes for U.S. Crypto Leadership
The Blockchain Association’s push for reform reflects a broader concern that the U.S. risks falling behind in the global race to harness blockchain technology. Countries like the United Arab Emirates and Singapore have emerged as crypto-friendly hubs, attracting startups and capital that might have otherwise fueled American innovation.
With nearly 300 pro-crypto lawmakers set to take seats in Congress in 2025, there’s optimism within the industry that meaningful change could be on the horizon. However, achieving the sweeping reforms outlined by the Blockchain Association will require navigating a complex political and regulatory landscape.
Crypto’s Call to Action
As Trump prepares to take office, the Blockchain Association’s letter underscores the growing importance of blockchain and digital assets in shaping the future of finance, technology, and governance. Whether the incoming administration embraces the Association’s recommendations could set the tone for U.S. crypto policy—and its global competitiveness—for years to come.
For now, the industry’s message is clear: The time for regulatory reform is now, and the opportunity to lead on the global stage is Donald Trump’s to seize.
John Lansing
UCW Newswire
