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The cryptocurrency industry spent hundreds of millions of dollars to elect a pro-crypto Washington. Now it wants results.
Why it matters: Crypto interests want to see a much lighter touch from the Trump administration’s regulators, and they’re also planning to push Congress for a new framework that would help crypto become a bigger part of the financial system.
What we’re watching: The most immediate shift in crypto’s favor will likely come from the Securities and Exchange Commission, its main regulator.
- The Biden administration has been viewed as acutely hostile, but a new SEC could quickly roll back some of its least popular rules and settle ongoing lawsuits.
- One early target: Biden-era SEC rules that limit banks’ ability to holding cryptocurrency for their customers. The rule is unpopular with pretty much everyone — banks, startups, Republicans and Democrats.
New leadership at the agency also might decide to withdraw or settle a slew of lawsuits, many of which focus on technocratic issues in how different cryptocurrencies are regulated.
- President-elect Trump has yet to name someone to lead the SEC, but he has already appointed two relevant Cabinet members known to be fans of digital assets: Howard Lutnick for the Commerce Department and Scott Bessent for Treasury.
Zoom out: The industry’s biggest target during the election was Sen. Sherrod Brown (D-Ohio), the chair of the Senate Banking Committee and a crypto foe.
- Brown lost, thanks in no small part to waves of crypto money supporting his challenger, Sen.-elect Bernie Moreno.
- But its push was bipartisan — the advocacy group Stand With Crypto also counts newly elected Democratic senators Angela Ashbrooks, Ruebn Gallego, Andy Kim, Elissa Slotkin among its allies.
- And there are now 276 pro-crypto House members, according to Stand With Crypto.
What they’re saying: “President-elect Trump’s vision to make America the crypto capital of the world is a hope shared by the entire crypto industry,” Kristin Smith, CEO of the Blockchain Association, wrote in a post-election statement.
- The first two priorities she listed in a letter to the president-elect were to establish a crypto regulatory framework and end the debanking of blockhain companies.
Reality check: The margins in each chamber are narrow so the industry will still need compromises — and patience.
By the numbers: After spending something north of $200 million in the 2024 election cycle, the industry has already said it has $78 million on hand for the midterms.