Blockchain Association Urges Change

The group submitted a letter on November 22, outlining a five-point plan to reshape federal oversight of the digital asset sector, which it sees as essential to fostering innovation and competitiveness in the United States.

The brief letter, shared publicly on the Blockchain Association’s website, paints a picture of an industry stifled by years of “hostile regulatory regimes” that have driven American crypto innovators offshore. The Association’s CEO, Kristin Smith, emphasized the urgency of reform, writing:
“For years, American crypto innovators have been targeted and, in some cases, driven offshore by a hostile regulatory regime. Your arrival in Washington, D.C., has the potential to change that reality.”

The letter urges the incoming administration to embrace a new regulatory approach to encourage innovation while maintaining consumer protections. Its proposals reflect a desire for the Republican Party to champion the restructuring of federal oversight in a way that aligns with Trump’s pro-business agenda.

Source: BCA

The Blockchain Association’s five-point plan outlines key actions the Trump administration could take to reinvigorate the digital asset ecosystem:

1. A Fit-for-Purpose Regulatory Framework:
   The Association calls for the creation of a comprehensive framework tailored to digital assets. This framework would replace the existing “regulation by enforcement” strategy, which the group argues has stymied growth and created legal uncertainty for crypto businesses.
2. End Debanking of Crypto Businesses:
   The group urges Trump to end the practice of debanking crypto companies, which has left many firms without access to essential financial services.
3. New SEC Leadership:
   Reform at the Securities and Exchange Commission (SEC) is a high priority. Specifically, the Association recommends appointing a new SEC chair committed to reversing Staff Accounting Bulletin 121 (SAB 121), which many industry insiders see as overly restrictive and anti-crypto.
4. Leadership Changes at Treasury and IRS:
   The Association also advocates for appointing crypto-friendly leaders at the Treasury and the Internal Revenue Service (IRS). Recent reports suggest Trump may be considering former Federal Reserve Board member Kevin Warsh for Treasury Secretary, with a potential plan for Warsh to transition to the Federal Reserve Chair role in 2026. Meanwhile, the current IRS Commissioner, Daniel Werfel, appointed in 2023, could face replacement as Republicans take control of Congress.
5. Establishment of a Crypto Advisory Council:
   The Blockchain Association proposes forming a federal advisory council to collaborate with Congress and regulatory agencies. This council would help ensure that regulatory changes are well-informed and aligned with the needs of the crypto industry.

While the Blockchain Association’s plan offers a bold vision, it does not address potential roadblocks, such as partisan gridlock or competing legislative priorities. Former House Speaker John Boehner recently warned that such challenges could significantly delay Trump’s ability to implement sweeping reforms within his first 100 days.

Trump’s reported appointments for key roles, such as Howard Lutnick for Secretary of Commerce and Scott Bessent as a potential Treasury nominee, underscore his administration’s intention to prioritize business-oriented reforms. However, the crypto community is particularly focused on who will take the reins at the SEC and IRS, as these agencies play pivotal roles in shaping the regulatory environment.

The Blockchain Association’s letter reflects the growing recognition of crypto’s role in the U.S. economy and its potential for innovation. Whether the Trump administration can deliver on these ambitious reforms remains to be seen, but the industry is poised for a transformative period under the new leadership.