Crypto Community Seeks Coverage Modifications During Trump Administration

Following years of ambiguity surrounding digital assets in the United States, President Donald Trump has pledged to position America as the leading nation in cryptocurrency.

The newly inaugurated US President has already enacted an executive order aimed at establishing regulatory clarity concerning digital assets.

Trump signs the Executive Order forming a group to assess the establishment of a “National Digital Asset Stockpile”…
He also acknowledges @DavidSacks. The foremost AI & Crypto Czar in American history. pic.twitter.com/wfUiPJebQp

— Geiger Capital (@Geiger_Capital) January 23, 2025

The order includes the formation of a “national digital asset stockpile” and prohibits the establishment of a Central Bank Digital Currency (CBDC).

Thanks to @realDonaldTrump’s pardon, Ross was able to embrace his wife, mother, father, and sister outside the prison walls. The past 36 hours have been a complete whirlwind, and we keep pinching ourselves to ensure we’re not dreaming.
So much gratitude, love, and hope for what lies ahead.… pic.twitter.com/A7vL5s6IEM

— Free_Ross (@Free_Ross) January 23, 2025

Trump has also fulfilled his commitment by granting a “full and unconditional” pardon to Silk Road creator Ross Ulbricht.

United States Progressing in the Right Direction

While the US has historically been at the forefront of advanced technology, its government has implemented stringent regulations and policies affecting the cryptocurrency and blockchain sectors.

Will Martino, co-founder and president of blockchain firm Kadena, informed Cryptonews that this has created significant challenges for those operating within the Web3 sector in the US.

Nonetheless, Martino is optimistic that the country is finally heading in a positive direction. “Only time will tell, but it would be unwise not to be extremely optimistic about the US-based crypto market,” he stated.

Looking Beyond Bitcoin

Martino expressed his hope for the establishment of a US strategic crypto reserve that encompasses all legitimate US-based crypto projects.

While Trump has shown interest in creating a strategic Bitcoin reserve, Martino believes that various initiatives should receive support.

Will President Donald Trump fulfill his promise of a strategic Bitcoin reserve for America?#DonaldTrump #BTC #BitcoinReservehttps://t.co/Vfg0QJOOVv

— Cryptonews.com (@cryptonews) January 23, 2025

“If they are serious about supporting the industry, they must back the US market, not just select favorites,” Martino remarked. “Diversifying across the entire market sends a clear message that the Trump Administration believes in the broader potential of crypto and blockchain, encouraging innovation and growth across all sectors.”

Avidan Abitbol, project director for the Data Ownership Protocol (DOP), further told Cryptonews that the US Securities and Exchange Commission (SEC) should reconsider crypto exchange-traded funds (ETFs) beyond Bitcoin (BTC).

“If the SEC establishes a clear approval process for these products, it could provide institutions with a more straightforward way to gain exposure to the crypto market,” Abitbol stated.

Applications for crypto-based exchange-traded funds have reportedly doubled following the resignation of former SEC Chair Gary Gensler.

According to Bloomberg analyst Eric Balchunas, 33 crypto asset ETF applications have currently been submitted to the US SEC.

The list of crypto ETFs filed with the regulator includes Bitcoin and Ether products, but asset managers have also filed for Solana, Litecoin, Dogecoin, and even a Trump exchange-traded fund.

Ending Regulation-By-Enforcement

Industry experts are also hopeful for the cessation of regulation-by-enforcement now that Trump is in office.

There has been a talent exodus from the US due to regulators’ inability to provide clarity regarding crypto and blockchain. Consequently, many US regulators have adopted a regulation-by-enforcement approach.

Dave Hendricks, CEO and co-founder of digital asset firm Vertalo, informed Cryptonews that ending regulation-by-enforcement is crucial.

“This ‘pin the tail on the donkey’ approach to regulation left too much to chance, leading to excessive guessing, and increased legal fees as well as other overlooked costs, such as business insurance,” Hendricks stated.

Echoing this sentiment, Martino noted that US-based Web3 companies are, “currently playing a game where we ‘assume’ we know the rules. But at any moment they could change, and we’ve suddenly lost.”

This is why clear policies and regulations are essential for US-based crypto and blockchain firms.

From an investor and technology perspective, Martino believes that greater clarity regarding rules and regulations will facilitate accelerated innovation and real-world adoption.

Repeal The Bank Secrecy Act

Natalie Smolenski, executive director of the Texas Bitcoin Foundation, informed Cryptonews that she hopes to see the repeal of the Bank Secrecy Act under the Trump Administration.

Elizabeth Warren introduced The Bank Secrecy Act to the US Senate on July 27, 2023. This legislation dates back to the 1970s and establishes program, recordkeeping, and reporting requirements for national banks, federal savings associations, and federal branches and agencies of foreign banks.

If this legislation were to pass, digital asset providers would be required to comply with many of the same regulations as traditional banks.

“The Bank Secrecy Act lays the groundwork for the government to force all financial transactions to go through banks, which the state controls. That would be a travesty for human liberty,” Smolenski stated. “In a free society, utilizing the banking system or any other financial service should be a voluntary choice, not a legal obligation.”

Abitbol is optimistic that the Trump administration may be receptive to innovative solutions like zero-knowledge proofs (ZKPs).

“ZKPs could potentially address a significant issue in crypto: how can we keep transactions private while ensuring everything is above board? With ZKPs, the software can verify if a transaction is legitimate without needing to see all the intricate details. It’s compliance without sacrificing privacy,” he stated.

Improved Crypto Tax Relief Efforts

Tax regulations surrounding digital assets continue to pose challenges for many Web3 companies and investors.

A report released by the US Internal Revenue Service (IRS) in June 2024 indicates that centralized crypto exchanges (CEXs) and other brokers will likely be required to report the sales and exchanges of digital assets.

While the new tax guidelines aim to assist crypto investors, further clarity is necessary. Abitbol mentioned that he is monitoring potential tax reforms.

With new U.S. crypto tax regulations taking effect in 2025, experts analyze their significance for exchanges and investors alike.#CryptoTax #DigitalAssets #Blockchainhttps://t.co/bwtU9q6wdc

— Cryptonews.com (@cryptonews) January 20, 2025

“There’s discussion about eliminating capital gains taxes on US-based cryptocurrencies, which could make it more appealing for individuals to use crypto for everyday transactions. This could be a game-changer for adoption,” he stated.

Challenges to Consider

While it is noteworthy that Trump has already begun implementing crypto-friendly measures, challenges persist.

Martino pointed out that the prevalence of misinformation, fear, and uncertainty surrounding blockchain technology remains problematic.

While education is a crucial factor to consider, enacting lasting legislation is complex.

Daniel Polotsky, founder of Bitcoin ATM company CoinFlip, informed Cryptonews that while regulatory agencies in the executive branch can cultivate a pro-crypto environment, it could be reversed by future administrations without legislation.

“With a slim majority in both chambers, Republicans will likely need to collaborate with Democrats to pass legislation, and must prioritize it to ensure it gets done before midterm elections,” Polotsky stated.

The post Crypto Community Voices Policy Changes Needed Under Trump Administration appeared first on Cryptonews.