On January 20, 2025, the United States will begin a new chapter in more ways than one. While the nation will be focused on President Trump’s inauguration as our 47th president, the American 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 heavy-handed approach to stifling innovation and shackling the engine of the American economy. His punitive stance was particularly damaging in the burgeoning field of cryptocurrencies and blockchain technology.
While touting his actions as measures to protect investors, Gensler took advantage of an artificial ambiguity to undermine the growth and technological advances that make American markets competitive and fuel promising projects abroad, including the development of the next generation of the Internet.
Under Gensler’s leadership, the SEC’s enforcement-focused agenda frequently did more harm than good, and “regulatory uncertainty” was used to attack American crypto exchanges such as Bittrex, Kraken, and Coinbase, and Bittrex explicitly cited the effects of Gensler’s approach when it exited the market. US market.
The question is not whether cryptocurrency requires regulation; unquestionably requires it. 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 surpassing the $100,000 threshold, digital assets have proven their staying power and investors have already tapped into their potential.
Last year, I was proud to help the House pass the Financial Technology and Innovation for the 21st Century Act, a bill championed by our incoming Financial Services Chairman, French Hill. FIT 21 represents a groundbreaking change in the legislative landscape and would establish a new responsible 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 evolving market, and unlike the SEC’s playbook, FIT 21 encourages 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 alongside 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 helped him gain broad support from younger, more diverse voters for whom cryptocurrencies are a staple 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 the Framework for Cryptocurrency. analysis of digital asset investment contracts.
These resources provided critical information to help entrepreneurs navigate compliance while developing innovative technologies.
Beyond the Biden administration’s hostility toward cryptocurrencies, Chuck Schumer and Democrats in the Senate refused to consider FIT 21 after it passed the House with overwhelming bipartisan support. Additionally, in New York, the 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 the 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 Efficiency could revolutionize the way federal agencies operate and save taxpayers billions by integrating blockchain technology across the government.
With President Trump’s appointment of Paul Atkins as the next SEC Chairman, we can expect a more thoughtful and transparent approach to governance and policies that foster innovation while protecting investors, laying the foundation for the cryptocurrency and blockchain sector prospers and the creation of high-level companies. pay for new American jobs. We will be able to move beyond the opportunities missed during the Biden administration and build a framework that positions the United States as a leader in the global digital economy.
