the staff of the Ridgewood blog
Ridgewood Nj, The cryptocurrency industry, after years of regulatory ambiguity and enforcement crackdowns, is on the cusp of a transformative moment. With the 2024 elections behind us, the incoming administration and Congress are poised to embrace pro-crypto policies that could shape the future of digital assets in America.
President-elect Donald Trump, once a vocal skeptic of cryptocurrency, shifted gears during his campaign, becoming the first presidential candidate to accept digital assets. Coupled with bipartisan momentum in Congress, crypto advocates are optimistic about meaningful reforms in 2025.
A Promising Shift in Crypto Regulation
For years, the crypto industry faced challenges under the Biden administration, which pursued enforcement actions against major players like Coinbase and Ripple. Advocates decried the lack of clear regulatory guidelines. Now, with a pro-crypto administration and Congress, the landscape is expected to change dramatically.
Kristin Smith, CEO of the Blockchain Association, called the current moment pivotal:
“With a bipartisan, pro-crypto Congress and pro-crypto president next year, the pieces are in place to get smart policy — including stablecoin and market structure legislation — across the finish line that will shape the American crypto industry for years to come.”
Top Priorities for the Crypto Industry
1. Passing Comprehensive Crypto Legislation
The Financial Innovation and Technology for the 21st Century Act (FIT21) is a top contender for reshaping the crypto landscape. The 250-page bill provides clear regulatory guidelines, delineating the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Despite passing the House in 2024, FIT21 didn’t secure Senate approval. Incoming House Financial Services Chair French Hill (R-Ark.) has pledged to prioritize a crypto regulatory framework within the first 100 days of the next Congress.
“We need a market structure for digital assets. We don’t have rules of the road,” Hill said, criticizing the SEC’s enforcement-driven approach.
2. Appointing Crypto-Friendly Regulators
President-elect Trump’s appointments signal a pro-crypto stance. Former SEC Commissioner Paul Atkins, known for his crypto-friendly views, will replace outgoing SEC Chair Gary Gensler. Additionally, Trump has announced the formation of a “crypto council” led by David O. Sacks as the White House A.I. & Crypto Czar.
The CFTC leadership pick remains a key question. Contenders include Brian Quintenz, Summer Mersinger, Josh Sterling, and Neal Kumar—all figures with strong ties to the crypto industry.
Ripple’s Chief Legal Officer Stuart Alderoty expressed optimism:
“The war on crypto in the U.S. led by the SEC under Gary Gensler is over, which, hopefully, leads to a healthy regulatory relationship between the industry and financial regulators.”
3. Rolling Back SEC Crypto Accounting Guidance
The crypto industry is also targeting the SEC’s 2022 guidance, known as SAB 121. The rule requires public companies to report crypto assets held on behalf of users as liabilities, which industry leaders argue has stifled innovation and sidelined lenders.
Congress previously attempted to overturn the guidance, but President Biden vetoed the resolution. Advocates are hopeful the new administration will adopt a more industry-friendly approach.
Kristin Smith has called for the reversal of SAB 121, describing it as “punitive” and “anti-crypto.”
Why This Matters for the Future of Crypto
With bipartisan support and a receptive administration, the U.S. is poised to set a global standard for crypto regulation. Comprehensive legislation could provide the clarity and guardrails the industry needs to flourish while ensuring consumer protection and financial stability.
As Smith aptly noted, “Political power is fleeting, so it’s critical we take advantage of this moment to ensure crypto has a bright future ahead in the United States.”
Stay tuned as the crypto industry and lawmakers work together to shape the next chapter in digital finance.
Take the Wall Street Walking Tour https://www.facebook.com/unofficialwallstreet #WallStreetTours,#FinancialDistrictExploration, #ExploreWallStreet, #FinancialHistoryTour, #StockMarketExperience, #FinancialDistrictDiscovery, #NYCFinanceTour,#WallStreetAdventure