Crypto Advocates Push for Policy Shifts Under Trump Era Spotlight

The Trump administration brought dramatic changes to the U.S. financial and regulatory landscape, and the crypto community was not exempt from its impacts. As the blockchain industry gained traction globally, advocates for cryptocurrency policy reform sought to align their goals with the administration’s broader deregulatory agenda.

The Trump Administration’s Approach to Crypto

While the administration was primarily focused on traditional finance and tax reform, its relationship with cryptocurrency remained ambiguous. On one hand, there were notable pro-innovation voices within the administration, such as the appointment of crypto-friendly regulators. On the other hand, there were significant crackdowns on crypto scams and vague guidelines on digital assets.

What Crypto Advocates Demanded

Crypto advocates pushed for:

• Clarity in Regulations: The lack of clear definitions for cryptocurrencies as commodities, securities, or currencies led to confusion for businesses and investors.
• A National Framework: Advocates sought a unified regulatory approach instead of fragmented state-by-state rules.
• Tax Reform for Crypto Assets: Calls to adjust capital gains taxes and improve crypto tax reporting requirements grew louder.
• Encouragement for Innovation: The community wanted policies that fostered blockchain innovation rather than stifling it through overregulation.

Policy Shifts Advocates Championed

Key issues included:

• Token Classification: Advocates asked for a streamlined framework to classify tokens under existing financial laws.
• Banking Accessibility: Efforts to encourage banks to work with crypto businesses, addressing issues like de-banking.
• Global Competitiveness: Crypto leaders urged the administration to avoid falling behind countries like Switzerland, Singapore, and China, which were rapidly advancing crypto-friendly policies.

Challenges Faced by the Community

Despite optimism, crypto advocates faced significant hurdles:

• SEC Crackdowns: The Securities and Exchange Commission ramped up enforcement actions, creating fear within the industry.
• Volatility Concerns: Bitcoin’s price fluctuations made mainstream adoption challenging, particularly with policymakers.
• Skepticism from Traditional Finance: Many of Trump’s economic advisors were rooted in traditional banking and finance, creating resistance to disruptive blockchain technologies.

The Trump era offered both opportunities and roadblocks for cryptocurrency. While regulatory ambiguity continued, the period marked a turning point in raising awareness of the need for comprehensive crypto policies. Advocates hoped their voices would spark more meaningful dialogue in subsequent administrations.