Dear President Elect Trump,
As the co-head of a prominent law firm's digital assets division, I hope your choice for the chair of the Securities Exchange Commission (SEC) will advance the critical and overdue reforms necessary for crypto market regulation in the United States.
However, the confirmation of your SEC chair pick will take time, delaying potential guidance and rules for the crypto industry. With that understood, I respectfully propose an Executive Order for you to issue on your first day in office to help regain American leadership in the growing crypto financial system.
Many countries have rapidly created a clear regulatory framework for crypto innovation, while U.S. lawmakers have, so far, failed to adapt outdated rules that do not apply to this revolutionary technology, leaving U.S. market participants in uncertainty. Currently, the SEC, under chair Gary Gensler, has filed case after case against crypto firms based on allegations tied to old and irrelevant regulations, even where no fraud or investor harm is claimed.
This enforcement-driven regulatory strategy has driven many leading innovators and businesses in the digital asset space overseas, threatening America's competitive edge in the global economy.
How to Revitalize the Industry
The good news is that it’s not too late to pivot back. This new moment offers a rare chance to establish America as the world’s crypto capital, harnessing the transformative power that digital assets and blockchain technology can bring to our nation. While multiple legislative and regulatory reforms are needed to capitalize on this opportunity, one immediate step you can take on Day One is:
- Instantly suspend all investigations and legal actions against crypto companies unless they involve valid allegations of fraud or actions that can threaten national security.
- Submit a written report to the President's office within 180 days explaining why ongoing proceedings should not be terminated.
- Promptly end all non-viable investigations and actions against crypto entities.
The Potential Impact of the Executive Order
This proposed order would be vital in reversing the negative atmosphere surrounding the digital assets industry caused by the recent surge in government litigation, especially against compliant actors who, at worst, did not follow outdated rules without harming anyone. Notably, the SEC has recouped billions through penalties in cases lacking any victim-related claims.
Many lawsuits have imposed extreme penalties on legitimate crypto firms that are essential for building a thriving market in the U.S. It’s time to reassess this blunt enforcement tactic.
Conclusion
You have the authority to enact this change. Article II of the Constitution grants the President power to issue Executive Orders without the need for legislative or regulatory measures. The Justice Department's Office of Legal Counsel has determined that this constitutional power enables the President to compel federal agencies—including independent bodies like the SEC—to comply with such directives.
You can position America at the center of the global crypto economy by taking decisive actions such as this Executive Order on your first day in office.
