Reform and Rally: Blockchain Association Urges President-elect Trump for Crypto Overhaul

• The Blockchain Association urges the creation of a fit-for-purpose regulatory framework for digital assets, balancing innovation with consumer protection, and ending the “regulation by enforcement” approach. 
• Leadership changes are recommended at key agencies like the SEC, Treasury, and IRS, alongside rolling back restrictive policies such as SEC Staff Accounting Bulletin 121 (SAB 121). 
• The organisation also proposes the establishment of a cryptocurrency advisory council to work closely with Congress and federal regulators

The Blockchain Association, a nonprofit Washington DC-based advocacy group, has submitted a letter to President-elect Donald Trump and Congress, outlining five key priorities for the initial 100 days of his administration. 

The recommendations aim to reshape the regulatory landscape for digital assets and address challenges currently hindering innovation and growth in the industry.

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Federal Oversight Urged

The Blockchain Association’s CEO, Kristin Smith, emphasised the need for federal oversight restructuring, citing the challenges faced by US-based crypto innovators under current regulatory practices. 

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According to the letter, the goal is to end what the group describes as a “hostile regulatory regime” that has pushed many American businesses offshore.

Ok, so that’s quite a long post so let’s summarise because we know we will not read all that. Here you go:

• Fit-for-Purpose Digital Asset Framework: The Association advocates for a regulatory framework that balances innovation with consumer protection. They also urge an end to the current policy of “regulation by enforcement”.
• Debanking of Crypto Companies: The letter calls for an end to the debanking of cryptocurrency businesses, a practice that has limited their access to essential banking services needed for day-to-day operations.
• Leadership Changes at Key Agencies: The Association suggests appointing new leadership at the SEC, Treasury, and IRS. It also recommends rolling back SEC Staff Accounting Bulletin 121 (SAB 121), which the industry considers overly restrictive.
• New Treasury and IRS Leadership: The Association argues that updated leadership at the Treasury and IRS is critical to aligning these agencies with pro-innovation policies. Trump recently nominated pro-crypto Scott Bessent as Treasury Secretary.
• Creation of a Crypto Advisory Council: The final recommendation is establishing a dedicated cryptocurrency advisory council that would collaborate with Congress and federal regulatory bodies to ensure balanced and effective regulation.

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In all fairness, the Blockchain Association’s proposals simply highlight the urgent need for a cohesive and supportive regulatory environment for the crypto industry.

Whether these recommendations will be adopted… well, that remains to be seen, but they reflect the broader industry’s call for reform and clarity in the evolving world of cryptocurrency.