The Week in Crypto Policy: Post-Election Analysis

Key Insights

• Compared to the Biden Administration, the Trump Administration will likely mark a significant improvement from the regulatory status quo, with the expected appointment of less crypto-hostile (if not, pro-crypto) agency personnel and increased engagement with industry stakeholders on rulemakings.
• Republican control of the House and Senate offer several reasons to be optimistic that pro-crypto legislation reaches President Trump's desk in the 119th Congress.
• The successes of pro-crypto candidates on both sides of the aisle, particularly in key swing states and districts, show there is likely much more to gain than lose politically by embracing crypto.

Election Analysis: Impact of White House and Congressional Races

White House

The incoming Trump Administration will likely be a significant improvement for crypto policy compared to the last few years. Under the Biden Administration, federal banking regulators have pressured banks to avoid crypto-related activities and crypto businesses, Treasury has proposed illicit finance and tax rules often decried as unworkable for decentralized technology, and the SEC has avoided issuing tailored rules for crypto in favor of bringing enforcement actions against everyone from exchanges who sought to register in good faith to NFT artists.