Weekly Crypto Regulation Roundup: Trump Slams Musk, Tim Scott Backs Blockchain, and Broker Rule Gets Buried

This past week has seen U.S. crypto policy thrust back into the spotlight — but not just in the legislative chambers. A political feud between two of the most influential names in tech and governance — Donald Trump and Elon Musk — spilled out onto social media, while regulatory milestones unfolded in the Senate and Treasury Department.

The conflicting headlines reflect a reality that the crypto sector knows all too well: when it comes to digital asset policy in the United States, clarity remains elusive.

U.S. President Donald Trump’s war of words with Elon Musk took a sharp turn this week, as the president publicly criticized Musk over the formation of a new political party.

U.S. President Donald Trump called tech billionaire Elon Musk a "train wreck" in a social media post on Sunday. #DonaldTrump #ElonMuskhttps://t.co/aDoUhWXSVR

On July 6, Trump lashed out on Truth Social, calling Musk a “train wreck” who had gone “off the rails” over the past five weeks. This response followed Musk’s July 5 post on X (formerly Twitter) announcing the launch of the “America Party.”

Trump, a long-time critic of third-party movements, said Musk’s efforts would lead only to “disruption and chaos,” arguing such ventures have never succeeded in the U.S. political landscape.

The clash marks an escalation in what appears to be a growing political and ideological rift between two powerful figures with vested interests in the future of technology, freedom of speech, and digital assets.

Trump also took aim at the Democratic Party, accusing them of losing both their “confidence and their minds” in the ongoing cultural and financial shifts, particularly regarding crypto policy.

Meanwhile, constructive progress on crypto regulation was unfolding in Washington. Senate Banking Committee Chairman Tim Scott (R-SC) led a July 9 hearing titled “From Wall Street to Web3”—the Senate’s first full committee hearing focused on digital assets.

In his opening remarks, Scott stressed that blockchain technology and digital assets are here to stay. He urged fellow lawmakers to build a robust and balanced regulatory framework that protects investors while allowing innovation to thrive.

Senator Tim Scott told his fellow U.S. lawmakers that digital assets are not going away in a committee hearing on Wednesday.#TimScott #Senatehttps://t.co/8Akk1p8zrs

Scott’s comments were supported by testimony from Ripple CEO Brad Garlinghouse, Blockchain Association’s Summer Mersinger, and Chainalysis co-founder Jonathan Levin.

He stressed the need for America to maintain a leadership role in shaping the future of digital finance, rather than ceding influence to jurisdictions like the UAE and Singapore.

The hearing highlighted bipartisan acknowledgment that digital asset markets require clearer regulatory guidance, even as lawmakers differ on the methods of implementation.

In a move for DeFi advocates, the U.S. Treasury Department has officially repealed a controversial broker reporting rule. The regulation, originally introduced under the Biden administration in late 2024, sought to impose broker-level reporting requirements on entities involved in decentralized finance and crypto infrastructure.

However, following a successful challenge under the Congressional Review Act—and a signature from President Trump—the rule has now been nullified.

The scrapped rule, titled “Gross Proceeds Reporting by Brokers,” would have gone into effect in February 2025 and required extensive data collection from DeFi platforms.

Its repeal has been welcomed by industry groups, who saw the rule as overly broad and detrimental to innovation. The Treasury will now revert to pre-2024 guidance, which exempts validators and wallet providers from broker classification, marking a key policy win for decentralized systems.

Finally, regulatory leadership is taking a crypto-savvy turn. Jonathan Gould, a former Bitfury executive with deep experience in blockchain and financial policy, has been confirmed as the new head of the Office of the Comptroller of the Currency (OCC). Approved by a 50-45 Senate vote, Gould becomes the OCC’s first permanent chief since 2020.

Gould’s appointment shows a potential shift in how the U.S. banking regulator approaches digital asset oversight. During his prior tenure at the OCC under the Trump administration, Gould helped shape key positions on fintech and crypto integration in banking.

With his return, stakeholders hope the agency will adopt a more innovation-forward stance—especially as traditional banks explore blockchain-based products such as tokenized deposits and on-chain settlement rails.

Together, this week’s events reflect the growing entanglement between crypto, regulation, and politics. Whether through partisan clashes or bipartisan hearings, the evolution of U.S. digital asset policy is entering a more complex and consequential phase.

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