The Blockchain Association, a nonprofit organization representing crypto and blockchain companies in the United States, sent a letter to President-elect Donald Trump and Congress on Friday. In the letter signed by Kristin Smith, CEO of the Blockchain Association, the organization outlined five priorities for the first 100 days of the Trump administration.
While the entire crypto industry is calling for the replacement of Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), Smith believes this is insufficient. According to Smith, an overhaul of the leadership of the Internal Revenue Service (IRS) and the Treasury Department is also needed.
The SEC is an independent agency and, as President Trump, will not have the authority to fire Gensler – something he promised to do on his first day back in the White House during his campaign. However, earlier this week, Gensler announced he would step down to make way for Trump’s replacement on January 20, 2025, the same day Trump is expected to take back the White House.
According to the letter, the taxation of digital assets has been inconsistent and the IRS’ recently introduced “broker rule” could drive businesses overseas. In July 2024, the IRS mandated that all broker-dealers be required to disclose gross proceeds as well as gains and losses from the sale of crypto, stablecoins, and non-fungible tokens (NFTs).
The letter also stated that the Treasury Department should be welcoming to software developers and prioritize the privacy of American citizens.
Smith also called on Trump to rescind accounting directive SAB 121 which requires listed companies to account for crypto assets on their balance sheets. In the letter, Smith called the directive “punitive” and “anti-crypto.”
The letter listed establishing a “fit” regulatory framework for cryptocurrencies among the suggested priorities. Regulation should strike a balance between protecting customers and encouraging innovation, the letter said.
Smith further wrote that crypto companies have long been denied access to traditional banking services and called for an end to the practice. The letter noted:
“Corporations and crypto users have been unfairly denied access to traditional banking channels essential to paying employees, suppliers and taxes. This practice should stop immediately.
Finally, the letter suggested that Trump should create a crypto advisory council to work with Congress and regulatory watchdogs. The Blockchain Association believes that public and private partnerships are essential to establishing “smart rules that work.”
