- Vague policies have historically been barriers to technological progress and market expansion.
- Effective regulatory frameworks in other countries show the potential benefits of explicit, supportive guidelines.
The United States is approaching a significant change in its approach to cryptocurrency regulation. With Gary Gensler’s exit from the SEC and Donald Trump’s return to the presidency, the crypto community is looking to see if the new administration will establish clear regulatory guidelines.
For years, CEOs, developers, and investors have expressed dissatisfaction with the U.S.’s vague regulatory stance, which has complicated innovation and added layers of risk in a volatile market.
They are hopeful that the incoming administration will enforce definitive rules that foster sector stability and growth. This is particularly relevant for Real World Asset (RWA) projects, which involve tokenizing physical assets like real estate and artwork.
The overlapping authority of entities such as the SEC, Commodity Futures Trading Commission (CFTC), Internal Revenue Service (IRS), among others, has led to a complicated regulatory environment.
Gary Gensler’s tenure at the SEC, which was heavily focused on enforcement rather than guidance, has been criticized for deterring rather than encouraging technological advancements. With Trump’s previously stated criticisms of Gensler’s tactics, there is an anticipation that his administration might support a framework that encourages rather than restricts innovation.
In comparison, countries like Switzerland and Singapore have advanced by establishing explicit and supportive regulations for cryptocurrencies.
Switzerland’s Financial Market Supervisory Authority (FINMA) has set clear rules for tokenized securities, while Singapore’s Monetary Authority (MAS) supports innovation through regulatory sandboxes and explicit licensing processes.
Crypto Firms Rally Behind Trump’s Inaugural Celebrations
Since the 2024 election, cryptocurrency firms have not hesitated to open their wallets, contributing at least $10 million to the Trump inaugural fund. Companies like Ripple, Coinbase, Kraken, Robinhood, and Circle have all made significant donations since Election Day.
“This is a moment of celebration for the industry,” said Kristin Smith, CEO of the Blockchain Association, a leading crypto trade association.
Apart from financial contributions, the crypto community is also making its presence felt through high-profile events. A notable example is the sold-out unofficial inaugural ball scheduled for Friday at the Andrew W. Mellon Auditorium, with Snoop Dogg headlining as the musical guest.
“I think it’s important to ensure that industry … can engage with this administration and engage in a meaningful way during the transition period,” Kara Calvert, vice president for U.S. policy at Coinbase, said of the firm’s donation.
This event underscores the industry’s intent to cement its influence in Washington, complemented by efforts from groups such as the Coinbase-backed Stand With Crypto.
Political and Regulatory Aspirations
The industry’s engagement doesn’t stop at celebrations. With a GOP-controlled Congress and a President who has shown explicit support for cryptocurrencies, there is a concerted push for a regulatory overhaul that could propel the sector’s growth.
Crypto leaders are particularly focused on influencing the formation of a digital assets advisory council, which President Trump has promised to establish.
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