The U.S. cryptocurrency industry could see significant regulatory change under President-elect Donald Trump, with the rapid passage of pro-crypto legislation expected early in his administration.
Faryar Shirzad, chief policy officer at Coinbase, expressed optimism that the convergence of a pro-crypto president and Congress could end years of legislative gridlock in digital assets.
Shirzad highlighted the unprecedented alignment of a pro-crypto White House and a Republican-controlled Congress, calling it “the most pro-crypto Congress in U.S. history.” Speaking at a Coinbase-supported advocacy event in London on December 2, Shirzad highlighted the opportunity to advance legislation that would shape the future of digital assets and stablecoins.
“We have an extraordinarily pro-crypto president coming into office. This combination should finally allow the 50 million Americans who own crypto to see their interests and voices reflected in policy,” Shirzad said.
Main legislative proposals on the horizon
Two major bills are poised to set the tone for the crypto industry:
- Financial Innovation and Technology for the 21st Century Act (FIT 21 Crypto Bill): This Republican-sponsored bill aims to establish a legal framework for cryptocurrencies and was passed by the House of Representatives earlier this year.
- The law on payment clarity on stablecoins: This bill aims to regulate stablecoin issuers by creating a licensing regime for digital tokens tied to fiat currencies like the US dollar. Still awaiting a vote in the House, its passage is expected to streamline the use of stablecoins in global commerce and payments.
Shirzad anticipates significant progress on both bills by 2025, describing their passage as a crucial step toward regulatory clarity.
The departure of SEC Chairman Gary Gensler and the crypto industry’s strategic lobbying
SEC Chairman Gary Gensler, known for his tough stance on crypto regulation, added to this optimism by announcing his resignation, effective January 20, 2025, the day of Trump’s inauguration. Gensler’s departure could signal a change in regulatory philosophy.
Faryar Shirzad and Grant Vingoe share their thoughts on crypto regulation at the Crypto Conversations event in Toronto, Canada. Source: YouTube
Shirzad expressed confidence that Trump would appoint an SEC chairman aligned with his administration’s pro-crypto stance, potentially fostering innovation in the US crypto market.
The crypto industry has actively sponsored pro-cryptocurrency political candidates. The Federal Election Commission reports that cryptocurrency-related political action groups (PACs) have raised more than $245 million to influence the 2024 election. Coinbase’s advocacy group, Stand With Crypto Alliance, has also created a rating to gauge politicians’ opinions on bitcoin, helping to elect around 300 pro-crypto MPs.
Trump’s victory and his administration’s optimistic outlook have breathed new life into the cryptocurrency sector. Shirzad emphasized the need to build on this momentum to make the United States a global leader in digital assets.
The stakes are high, with the regulation of stablecoins particularly urgent given their growing role in international payments. If successful, this regulatory overhaul could unlock the full potential of digital assets, paving the way for innovation and economic growth in the sector.
As Shirzad rightly said: “The alignment of a pro-crypto president and Congress creates an unprecedented opportunity for transformative progress in U.S. cryptocurrency policy. »
