Under President Donald Trump's administration, lawmakers and industry leaders are calling for a regulatory overhaul of the cryptocurrency sector to maintain the US's competitive edge globally.
Regulatory Demands
On February 11, the Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee of the House Financial Services Committee will hold a hearing titled "A golden age of digital assets: charting a path forward." Witnesses will include senior executives specializing in cryptocurrencies such as Jose Fernandez da Ponte from PayPal, Jonathan Jachym from Kraken crypto exchange, and Timothy Massad from Harvard University.
House Financial Services Committee Hearing
In written testimony to Congress, Ji Hun Kim, president and acting CEO of the Crypto Council for Innovation (CCI), emphasized the importance of a clear, comprehensive digital asset policy at the federal level. He noted that international competitors, such as the European Union, the United Kingdom, Japan, and Singapore, are advancing with clear regulations, putting the United States at risk of falling behind. Kim outlined four key legislative priorities to ensure the US remains a global leader in digital assets: passing comprehensive market structure legislation, passing stablecoin legislation, enhancing coordination between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), and supporting decentralized finance and individual empowerment.
Related Issues and Prospects
Coy Garrison, partner at the Steptoe law firm, supported the call for regulatory changes under the new administration. He noted that the SEC, CFTC, and the Federal Deposit Insurance Corporation (FDIC) are trying to attract crypto businesses back to the US by rolling back restrictive policies from the administration of former President Joe Biden. Garrison’s testimony also stated that congressional action is needed to implement oversight of spot market digital asset trading in addition to the SEC’s duty to provide regulatory clarity under its existing jurisdiction.
Experts emphasize the need for Congress and the Administration to work together on establishing a necessary regulatory framework for digital assets in the US to ensure global leadership and sustainable technology development.
