Last week, President Trump made a pivotal move towards redefining the landscape of digital assets by creating a Crypto Council headed by investor David Sacks. This Executive Order, alongside the recent repeal of SAB 121, illustrates the administration’s commitment to eliminating obstacles hindering crypto adoption.
This council represents a significant opportunity to restore the crypto industry after challenges faced during the Biden Administration. Rather than encouraging regulatory hostility, Trump’s Crypto Council can pave the way towards innovation and safeguard the interests of the retail investors who supported his electoral campaign.
Beyond the major crypto enterprises like Coinbase and Ripple, the council must also prioritize retail investors—who are essential to the crypto ecosystem. For too long, these individuals have been overlooked or mistreated by powerful figures and the regulatory frameworks that are supposed to protect them.
The Importance of Retail Representation
During the previous four years, the Biden Administration, influenced by officials such as Senator Elizabeth Warren and former SEC Chair Gary Gensler, launched a harsh campaign against the crypto sector. Initiatives like Chokepoint 2.0 revealed a coordinated effort to sever the banking support for crypto companies, consequently stifling innovation and driving many users overseas.
As an attorney advocating pro bono, I represented 75,000 XRP holders in significant legal battles and highlighted the plight of investors who lack the means to influence legislation.
The newly established Crypto Council must not morph into an exclusive assembly of industry leaders. It needs to incorporate advocates for retail investors who understand the implications of regulatory decisions on ordinary Americans’ finances.
A Plan for Legislative Advancement
The administration is poised for an exceptional chance to introduce impactful crypto legislation aimed at promoting growth while protecting investors. It is crucial to act promptly as midterm elections are on the horizon.
Key priorities they must tackle include:
- Stablecoin Legislation: Establish a structure promoting U.S. Treasury use and facilitate affordable international transactions through stablecoins.
- Market Oversight Reform: Clarify the CFTC’s authority over digital assets and define the regulatory status of tokens.
- Exchange Regulation: Mandate segregation of customer funds and ensure legal protection during bankruptcy.
- Tax Policy Reform: Repeal laws treating minor crypto transactions as taxable events, easing the burden on everyday users.
Championing Inclusive Governance
The success of the Crypto Council is contingent on its composition. If it turns into a meeting of executive royalty, it will miss its target of advancing equitable policies.
Those utilizing digital currencies for payments, savings, and investment deserve to have their interests represented, having played a vital role in shaping this administration’s fate. Their priorities must take precedence over the powerful few.
The opportunity exists to construct an environment fostering trust and economic opportunity while adhering to an America First Agenda. Let’s not squander it.
