Regulatory Reforms Urged by Blockchain Association
On November 22, the Blockchain Association, a Washington, DC-based advocacy group, penned a letter to President-elect Donald Trump, urging him to prioritize significant reforms in the regulation of cryptocurrency and blockchain during the crucial initial 100 days of his presidency. In this correspondence, the Association laid out a comprehensive five-point plan aimed at overhauling federal oversight for the cryptocurrency and blockchain sectors.Their goal? To encourage growth and innovation in these industries.
They pointed out that American crypto entrepreneurs have struggled under a regulatory climate that often feels hostile, which has pushed some to move their businesses overseas.
The Association expressed hope that under Trump’s leadership, there could be a turnaround in this challenging environment.
A Balanced Approach to Digital Assets
The reform strategy emphasizes a need for a robust regulatory framework specifically designed for digital assets.This framework should strike a balance between protecting consumers and advancing innovation, steering clear of the current model that leans heavily on “regulation by enforcement.” However, the plan does not account for potential congressional gridlock, which could stall sweeping reforms early in the Trump administration. The first recommendation in the plan calls for an overhaul of digital asset regulation that prioritizes both innovation and consumer safety.
Following this, the Association demands an end to the debanking practices targeting cryptocurrency firms and advocates for a new chair at the Securities and Exchange Commission (SEC), someone who would recognize and address the problematic aspects of SAB 121.
This SEC Staff Accounting Bulletin has faced backlash within the industry for being detrimental to crypto activity.
Strengthening Government-Crypto Relations
Additionally, the Blockchain Association suggests changes in leadership at the Treasury and IRS, noting that Kevin Warsh, a former Federal Reserve Board member, is a name reportedly being considered for the Treasury position. To further solidify the link between cryptocurrency and government, the letter proposes the creation of a crypto advisory council that would engage with Congress and federal regulatory agencies.There are indications that discussions are already in progress within Trump’s inner circle regarding the establishment of a dedicated White House position focused specifically on cryptocurrency regulation. “`html
Source: Cointelegraph.com
“`
