Crypto Advocates Call for Clear Post-Biden Digital Asset Regulations

Industry leaders and lawmakers are urging a regulatory overhaul for the cryptocurrency sector in the wake of President Joe Biden's administration, with the goal of ensuring the United States remains competitive in the rapidly evolving digital asset landscape. As the global market for digital assets continues to expand, leaders in the crypto industry are calling for clear regulations that would attract businesses, foster innovation, and maintain the US's position as a global leader in financial technology.

On February 11, the Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee of the House Financial Services Committee held a hearing titled “A Golden Age of Digital Assets: Charting a Path Forward.” The session featured prominent witnesses, including Jose Fernandez da Ponte from PayPal, Jonathan Jachym from Kraken, and Timothy Massad from Harvard University.

Industry Leaders Stress the Need for Clear Regulations

In written testimony submitted to Congress, Ji Hun Kim, the president and acting CEO of the Crypto Council for Innovation (CCI), emphasized the necessity of a clear and comprehensive digital asset policy at the federal level. He warned that the US is at risk of falling behind international competitors, such as the European Union, the United Kingdom, Japan, and Singapore, which have already introduced well-defined regulations for digital assets.

Kim outlined four key legislative priorities to ensure the US remains at the forefront of the digital asset space:

Comprehensive Market Structure Legislation – Creating a clear and structured regulatory framework for the crypto market.

Stablecoin Legislation – Implementing specific regulations for stablecoins to ensure stability and growth in the sector.

Enhanced Coordination Between the SEC and CFTC – Improving collaboration between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to ensure a unified approach to crypto oversight.

Support for Decentralized Finance (DeFi) and Individual Empowerment – Encouraging the growth of decentralized financial systems that empower individuals and reduce reliance on traditional financial intermediaries.

Calls for Regulatory Revamp Under the New Administration

Coy Garrison, a partner at the Steptoe law firm, voiced support for regulatory changes under the new administration. He noted that agencies like the SEC, CFTC, and the Federal Deposit Insurance Corporation (FDIC) are working to attract crypto businesses back to the US by rolling back the restrictive policies set during the Biden administration. Garrison emphasized that Congressional action is critical to implement a regulatory framework that can provide clarity and certainty for the crypto industry.

“The timing is right for Congress and the Administration to work together to implement a much-needed regulatory framework for digital assets in the US,” Garrison stated during the hearing. He further advocated for a clear path for crypto businesses to operate legally within the United States, suggesting the government withdraw lawsuits against major crypto exchanges such as Coinbase, Binance, and Kraken. Instead of pursuing legal action, Garrison proposed creating registration pathways for digital asset businesses, allowing them to operate within a regulated framework.

The Push for a Competitive Edge

As the global regulatory landscape for digital assets continues to evolve, US lawmakers and industry leaders alike are pushing for policies that ensure American competitiveness in the digital economy. The rapid expansion of blockchain technology, cryptocurrencies, and decentralized finance has made it essential for the US to provide clear, fair, and transparent regulations that can foster innovation while protecting investors and the financial system.

With international competitors leading the charge on digital asset regulation, the call for comprehensive crypto policy in the US has never been more urgent. Industry leaders stress that without a cohesive regulatory framework, the US risks falling behind its global counterparts in an industry that is increasingly shaping the future of finance and technology.