Last week, through the executive order, President Trump took a significant step to remodel the future of digital assets by establishing a cryptographic council led by investor and businessman David Sacks. This executive order, together with the recent reversal of SAB 121, a poorly conceived policy that hindered that for the banks of the cryptographic actu, it shows that the new administration takes seriously the elimination of barriers for the adoption of cryptography.
This advice represents a gold opportunity to undo the significant damage inflicted on the cryptographic industry during the Biden administration. Instead of regulatory hostility, Trump’s Crypto Council can help draw a path to innovation, responsible and, most important supervision, the protection of customers and retail investors who helped him win the elections.
Although the participation of the main cryptographic companies such as Coinbase, A16Z and Ripple is crucial, the Council should not be composed solely of industry giants. For too long, retail investors, the spine of the cryptographic revolution, have been ignored, exploited or attacked directly, not only by the Sam Bankman of the world, but by the regulatory agency designed to protect them. If the new administration takes seriously the promotion of a fair and effective cryptographic policy, it must include a voice for the daily American.
The need for retail representation
During the last four years, the Biden Administration, through officials such as Senator Elizabeth Warren and the former president of the SEC, Gary Gensler, fought an unfair war against the cryptographic industry. Chokepoint 2.0 proved to be a coordinated effort to eliminate cryptographic companies of the banking system, restricting access to essential financial services. Ported innovation in the United States, sending customers and retail investors at the high seas to Bankman-Fried. The regulation approach for compliance with Gensler left entrepreneurs and investors for the same as navigated by an unpredictable and hostile regulatory environment.
I was first -hand witness how these reckless policies harmed retail investors. As a lawyer who worked Pro Bono, I represented 75,000 XRP holders in the Ripple case and presented the thousands of affidavits of retail investors cited by Judge Analisa Torres in their historical decision. I also worked as a lawyer amicus in other critical cases, including LBry and Coinbase, defending those who lack the resources to press Congress or fight against government extraimitation.
The newly established Crypto Council should not make the mistake of becoming an exclusive club of the industry elites. It must include defenders of retail investors, people who have been in trenches and understand the consequences of the real world of political decisions. It is one thing to speak in abstract terms about the structure of the market and innovation. Another is to stand with people whose financial futures depend on fair and transparent regulations.
A legislative plan for success
Although the national conversation has recently focused on things as a strategic Bitcoin reserve, this administration has a unique opportunity in the generation of approveing ​​significant cryptographic legislation that encourages growth while guaranteeing the protection of investors. You must act quickly because the mid -period elections will be here before we have it.
Several key priorities must be addressed:
1. Stablecoin legislation. Create a framework that drives the demand for the United States Treasury Bonds while reducing friction and rates for cross -border payments, which allows Stablocoins to serve as reliable financial tools for trade and global inclusion.
2. Market structure reform. Grant clear authority to the CFTC to supervise digital assets while establishing definitive guidelines for when a token constitutes security and, therefore, governed by the SEC.
3. Centralized exchange supervision. It requires centralized exchanges to segregate customer funds, avoiding any combination of corporate assets; introduce legislation to ensure that client funds are legally protected in bankruptcy procedures, to never be treated as assets of the bankrupt entity; Exchanges of mandates to maintain 100%reservations; prohibit the rehipotecation of customer funds, avoiding hidden risks and infection in the industry; and impose limits and safeguards on leverage trade to prevent retail investors from being eliminated by excessive risk.
5. Fiscal Policy Reform. Invest obsolete policies that treat the use of cryptography as a currency as an taxable event. Small daily transactions should not trigger taxes on capital gains.
A call to inclusive governance
The Crypto Council will only be as effective as the voices it includes. If it becomes only another meeting of industry executives and risk capitalists, it will fail to create a fair and inclusive policy.
Retail investors and those who use digital assets for payments, remittances, savings and investments deserve a seat at the table. They are not only interested in this industry, but also voters who played a fundamental role in the election of this administration to charge. Their interests must be prioritized, not only the interests of powerful institutions.
As someone who has dedicated my career to fight for everyday Americans, I urge David Sacks, Bo Hines and the Administration to ensure that the Crypto Council represents all voices, not just the strongest and most rich. If we do this correct, we can establish the United States as a world leader in digital asset innovation while safeguarding the rights of people who make this industry possible.
Clear and predictable regulation will not only help retail investors, but also promote innovation and economic growth in the US. For a long time and promising cryptographic projects have fled abroad due to regulatory uncertainty. A well -designed legal framework will bring these innovators back, ensuring that the United States remains at the forefront of financial technology.
This is our opportunity to build a framework that encourages trust, justice and economic opportunity while covering a first agenda in the United States. Please, don’t we waste it.
