With Donald Trump set to move back to the White House, the cryptocurrency industry is bracing for what many believe could be sweeping changes in regulatory frameworks. Faryar Shirzad, the chief policy officer at Coinbase, recently expressed confidence during a CNBC interview, predicting rapid legislation on crypto policies once Trump takes office.
Shirzad emphasized the unique political climate, stating, "We have the most pro-crypto Congress ever [in] history; we have an extraordinarily pro-crypto president coming to office." This sentiment reflects the recent Republican victories, which have seen the party gain control of both the House of Representatives and the Senate, allowing for smoother processes when it came to passing legislation.
Under Trump, the anticipated legislative boost for cryptocurrencies assumes two pivotal bills: the Financial Innovation and Technology for the 21st Century Act, which has already cleared the House, and the Clarity for Payment Stablecoins Act, aimed at establishing licensing regulations for stablecoin issuers. These proposed laws could pave the way for clear guidelines governing the burgeoning crypto market.
Shirzad noted, "I think it's important to create clarity. The Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act, will modernize the regulatory framework for digital assets, providing clarity about the roles of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission)." This structure could alleviate some of the confusion currently present within the market, which has been highlighted by the SEC's recent actions against several crypto exchanges accused of violating securities laws.
Despite initial hopes for legislation to be approved during the post-election period, Shirzad tempered expectations, acknowledging only minimal chances for progress. He remains optimistic, expressing anticipation for significant movement and hopefully passage of both market structure legislation and stablecoin regulations as we head toward 2025.
Trump’s imminent presidency appears to represent not just a political shift but also potentially signals the beginning of significant regulatory reform within the crypto space. The rising influence of cryptocurrency lobbying organizations is evident, having raised over $245 million during recent election cycles to support pro-crypto candidates, according to Federal Election Commission data. The Stand With Crypto Alliance, launched by Coinbase, has created grading systems to evaluate candidates on their crypto policies, identifying nearly 300 pro-crypto lawmakers who will take office.
The departure of current SEC Chair Gary Gensler—a vocal critic of the crypto industry—was also mentioned by Shirzad. Gensler is slated to step down on January 20, the date Trump takes office, which could provide the incoming administration the opportunity to reshape regulatory leadership toward more crypto-friendly approaches.
Certainly, the stakes feel high for crypto enthusiasts, with Shirzad articulately capturing the mood by stating, "This is about allowing 50 million Americans who own crypto to have their voices and interests heard. The power balance is shifting, and many believe it’s time for the industry to take its rightful place within the broader financial conversation.”
The outlook for the crypto market hinges significantly on the actions taken under the anticipated Trump administration. With promises from Trump to revise the Biden administration's strict crypto policies, industry players eagerly await the results of these changes, hoping for legislation permitting greater growth and innovation within the sector.
Moving forward, the cryptocurrency world is watching closely to see how this predicted legislation might shape the future of digital currencies and what it could mean for the millions involved across the country.
Shirzad's insights suggest optimism surrounding potential changes is grounded in the current realities within Congress and the financial market, indicating the era of crypto regulation could soon be transitioning from speculation to actionable, structured laws.
