Crypto industry invests millions to influence Washington
As Axios reports, cryptocurrency companies are seeking a more flexible approach from regulators under Donald Trump's future administration. They also intend to lobby Congress to adopt a new legislative framework that would allow cryptocurrencies to integrate more meaningfully into the financial system. The most immediate change in favour of cryptocurrencies is likely to come from the Securities and Exchange Commission, their main regulator.
Joe Biden's administration has been seen as hostile to cryptocurrencies, but a new SEC could quickly reverse some of its most unpopular rules and resolve pending lawsuits. A key goal would be to overhaul Biden-era SEC regulations that restrict banks' ability to hold cryptocurrencies on behalf of their customers.
This regulation has generated discontent across a range of sectors, including banks, start-ups and both Republicans and Democrats. The possibility of such a change could ease tensions and open up new opportunities for cryptocurrency integration.
The agency's new leadership could choose to withdraw or settle various lawsuits, many of which focus on technical issues related to regulation.
President-elect Trump has not yet nominated a new leader for the SEC, but he has already named two key figures in his Cabinet known for their affinity for digital assets: Howard Lutnick for the Commerce Department and Scott Bessent for the Treasury Department.
In this regard, it is worth noting that the industry's major goal during the election was to defeat Senator Sherrod Brown (D-Ohio), chairman of the Senate Banking Committee and a staunch opponent of cryptocurrencies.
Brown lost, in large part, due to the crypto community's support for his opponent, Senator-elect Bernie Moreno, who benefited from strong support from the crypto community.
However, its momentum was bipartisan: the advocacy group Stand With Crypto also counts among its allies newly elected Democratic senators Angela Alsobrooks, Ruben Gallego, Andy Kim and Elissa Slotkin.
There are currently 276 pro-cryptocurrency members of the House, according to Stand With Crypto.
‘President-elect Trump's vision of making America the cryptocapital of the world is an aspiration shared by the entire crypto industry,’ said Kristin Smith, CEO of the Blockchain Association, in a post-election statement, according to Axios.
The first two priorities they highlighted in a letter to the president-elect were establishing a clear regulatory framework for cryptocurrencies and ending the unbanning of blockchain companies. However, given the narrow margins in both chambers, the industry will have to continue to rely on compromises and, above all, patience.
After investing more than 200 million dollars in the 2024 election cycle, the industry has announced that it has an additional 78 million dollars available for the US mid-term election.