On January 20, 2025, the United States will open a new chapter in more ways than one. While the nation will focus on the inauguration of President Trump as the 47th president, the U.S. financial sector will celebrate the resignation of Joe Biden’s Securities and Exchange Commission Chairman Gary Gensler.
As a member of the House Financial Services Committee, I am well aware of Gensler’s authoritarian approach to stifling innovation and hobbling the engine of the American economy. Its punitive stance has been particularly damaging in the burgeoning field of cryptocurrency and blockchain technology.
While presenting his actions as measures to protect investors, Gensler exploited artificial ambiguity to undermine the growth and technological advancements that make U.S. markets competitive and drive promising projects abroad, including the development of next generation of Internet.
Under Gensler’s leadership, the SEC’s enforcement-focused agenda has often done more harm than good, and “regulatory uncertainty” has been used to attack US crypto exchanges like Bittrex, Kraken and Coinbase, Bittrex explicitly citing the effects of Gensler’s approach when exiting the market. American market.
The question is not whether cryptocurrency requires regulation – it undoubtedly does. Cryptocurrency, by its very design, challenges traditional financial systems and demands an entirely different regulatory framework – one that balances consumer protection with the need to foster innovation. With the price of Bitcoin recently crossing the $100,000 threshold, digital assets have demonstrated their sustainability and investors have already understood their potential.
Last year, I was proud to help the House pass the Financial Innovation and Technology for the 21st Century Act, a bill championed by our new Financial Services Chairman, French Hill. FIT 21 represents a revolutionary change in the legislative landscape and would establish a new accountable regulatory framework that clearly defines the role of the SEC and the Commodity Futures Trading Commission. This would provide much-needed clarity to a rapidly changing market and, unlike the SEC’s cumbersome implementation manual, FIT 21 promotes both transparency and innovation and protects consumers without stifling creativity. I applaud Rep. Hill for his work in this area and look forward to his continued efforts in tandem with President Trump in this area.
President Trump demonstrated a deep understanding of the transformative potential of cryptocurrencies during his historic campaign. Polls show that his embrace of these issues has helped him win broad support among younger, more diverse voters for whom cryptocurrency is an essential part of daily life.
During his first administration, President Trump’s SEC worked collaboratively with the crypto industry to enforce securities laws without alienating innovators, offering clear guidance through landmark initiatives such as the DAO report and digital asset investment contract analysis framework.
These resources provided essential information to help entrepreneurs comply with standards while developing game-changing technologies.
Beyond the Biden administration’s hostility toward crypto, Chuck Schumer and Senate Democrats refused to consider FIT 21 after it passed the House with overwhelming bipartisan support . Additionally, in New York, courts thwarted Governor Hochul’s attempt to shut down Bitcoin miners by rolling out the state’s sweeping climate law.
In anticipation of the return of President Trump and Republican majorities in the House and Senate, the cryptocurrency market is booming, with the price of bitcoin rising as much as 33% since Election Day. Additionally, President Trump’s new Cabinet and Department of Government Effectiveness could revolutionize the way federal agencies operate and save taxpayers billions by integrating blockchain technology across government.
With President Trump’s nomination of Paul Atkins as the next chairman of the SEC, we can expect a more thoughtful and transparent approach to governance and policies that encourage innovation while protecting investors – paving the way for prosperity of the cryptocurrency and blockchain sector and the creation of high-profile companies. pay for new American jobs. We will be able to move beyond the missed opportunities under the Biden administration and build a framework that positions the United States as a leader in the global digital economy.
