Blockchain Association Urges Trump to Prioritize Crypto Reform in First 100 Days

On November 22, the Blockchain Association, a prominent Washington, DC-based advocacy group, sent a letter to President-elect Donald Trump urging him to make cryptocurrency and blockchain regulatory reform a key priority during his first 100 days in office. The letter, which was also shared on the Association’s website, outlines a five-point plan aimed at overhauling federal oversight of the cryptocurrency sector, with the goal of stimulating growth and innovation in the industry.

The Blockchain Association expressed concern over what it described as a “regulation by enforcement” approach that has dominated cryptocurrency oversight in the U.S. for years. The group argued that this regulatory climate has caused American crypto innovators to seek opportunities abroad, as many feel the current framework is hostile to the industry. The Association believes that with Trump’s presidency, there is a unique opportunity to change the trajectory and establish a more supportive regulatory environment.

The Five-Point Reform Plan

The five-point plan proposed by the Blockchain Association calls for a comprehensive, top-down approach to reforming cryptocurrency regulation. However, it does not address potential challenges, such as congressional gridlock, which could complicate the swift implementation of such reforms. Below are the key recommendations outlined in the letter:

Establishing a Fit-for-Purpose Framework for Digital Assets:

The Blockchain Association urges Trump’s administration to create a tailored regulatory framework for digital assets that strikes a balance between encouraging innovation and ensuring consumer protection. The group advocates for policies that provide clear guidelines for the industry, rather than relying on piecemeal enforcement actions that have been a hallmark of the current regulatory environment.

Ending the Debanking of Crypto Businesses:

The Association calls for an end to the practice of debanking, where financial institutions sever ties with cryptocurrency businesses. This policy has been a point of contention in the crypto industry, with many arguing that it creates unnecessary barriers for crypto firms to access essential financial services. The Association seeks an environment where crypto businesses can thrive without undue discrimination.

Appointing a Pro-Crypto SEC Chair:

The group recommends that Trump appoint a new chair to the Securities and Exchange Commission (SEC) who is open to rolling back the agency’s controversial Staff Accounting Bulletin (SAB) 121. This SEC bulletin, which many in the crypto industry view as an obstacle to innovation, has been criticized for its perceived negative impact on crypto-related financial practices, particularly in relation to crypto assets held by companies.

Leadership Changes at the Treasury and IRS:

The Blockchain Association advocates for new leadership at both the U.S. Treasury Department and the Internal Revenue Service (IRS). Speculation about potential appointments for Treasury Secretary includes former Federal Reserve Board member Kevin Warsh, who is reportedly being considered for the role. If appointed, Warsh could serve as Treasury Secretary until 2026, at which point he could potentially take over as Federal Reserve Chair. The Association also hints at the possibility of changes at the IRS, though current IRS Commissioner Daniel Werfel is serving a five-year term that ends in 2028.

Establishing a Crypto Advisory Council:

Finally, the Blockchain Association proposes the creation of a crypto advisory council to work alongside Congress and federal regulatory agencies. This council would provide expertise and guidance on cryptocurrency and blockchain policy, helping to ensure that regulatory decisions are informed by industry knowledge and input.

Moving Forward with Crypto Regulation

In addition to the five-point plan, the Blockchain Association noted that Trump’s team is already exploring the creation of a White House position dedicated specifically to cryptocurrency regulation. This would represent a significant step toward acknowledging the growing influence of the crypto sector and addressing its regulatory needs at the highest levels of government.

The Blockchain Association’s letter to President-elect Trump marks a pivotal moment for the cryptocurrency industry, as it seeks a more stable and predictable regulatory environment that will foster innovation and allow U.S.-based crypto firms to compete on the global stage. While the letter outlines an ambitious agenda, it remains to be seen how quickly such reforms can be enacted, given the challenges of political gridlock and competing priorities in Washington. Nonetheless, the Association’s call to action signals a potential shift in how the U.S. government may approach cryptocurrency regulation in the coming years.