The cryptocurrency industry has entered a new era of political influence under the Trump administration, with key figures in Washington now openly discussing regulatory frameworks that could shape the future of digital assets. This shift has been met with both optimism and frustration from industry leaders and investors who see an opportunity to cement crypto’s role in mainstream finance.
Recently, David Sacks, the Trump administration’s crypto policy lead, held a press conference announcing a new congressional working group dedicated to advancing cryptocurrency regulation. However, the response from the crypto community was mixed. Many digital asset enthusiasts expressed skepticism, feeling that the announcement lacked groundbreaking developments.
Sacks himself acknowledged this sentiment during a podcast interview, referencing reactions on X (formerly Twitter). “There were a lot of people on X who felt like this wasn’t, you know, a mind-blowing announcement,” he said. However, he emphasized that having both the White House and key members of Congress committed to passing major cryptocurrency legislation—potentially within the next six months—was a significant milestone. “We’ve never had that before, so that is pretty monumental,” he added.
His remarks reflect a growing impatience within the crypto sector, which has spent heavily to elect pro-crypto lawmakers and now expects meaningful legislative action in return.
The Crypto Industry’s Push for Regulatory Clarity
The demand for regulatory certainty has been a recurring theme in the crypto industry. Ji Hun Kim, the president and acting CEO of the Crypto Council for Innovation, reinforced this urgency during a recent House committee hearing titled “A Golden Age of Digital Assets: Charting a Path Forward.”
“Time is critical,” Kim stated, emphasizing the need for clear and fair regulations that allow innovation to flourish while ensuring consumer protection.
Since Trump’s return to office, the crypto industry has secured several early wins, including:
- The repeal of an SEC accounting rule that was considered burdensome for crypto companies.
- An executive order directing a government working group to study and recommend changes to crypto regulations.
- A proposal to establish a strategic government reserve of cryptocurrencies within 180 days.
These developments mark a stark contrast to the regulatory approach of the previous administration, which many in the crypto industry viewed as overly restrictive.
Crypto Companies Flex Their Political Influence
As crypto firms push for more substantial policy changes, some have started leveraging their political power to settle old scores.
One striking example comes from Tyler Winklevoss, co-founder of the Gemini crypto exchange. Winklevoss recently announced that his company will no longer hire MIT graduates after the university rehired former SEC Chairman Gary Gensler as a professor.
“Not even interns for our summer intern program,” Winklevoss wrote on X.
His decision reflects lingering resentment over Gensler’s tenure as SEC chair, during which the agency took an aggressive stance toward crypto regulation.
Similarly, Coinbase’s CEO Brian Armstrong declared that his company would cut ties with law firms that hire former SEC officials who played a role in what he described as “unjust enforcement actions” against the crypto industry.
These moves signal a more assertive crypto industry that is not only advocating for regulatory change but also using its financial and political clout to punish those it perceives as adversaries.
Congressional Hearings and the SEC’s New Direction
In recent weeks, Congress has held several hearings where crypto advocates have aired grievances about how the industry was treated during the Biden administration.
A major point of contention has been the allegation that regulators pressured banks to sever ties with crypto firms, making it harder for them to access traditional financial services.
With new Republican leadership at the SEC, the agency’s stance on crypto is shifting. SEC Commissioner Hester Peirce, who has long been viewed as a crypto-friendly regulator, is now leading a task force focused on digital asset policy.
“It took us a long time to get into this mess,” Peirce said in a statement on the SEC’s website. “Please be patient.”
Additionally, the SEC recently requested a federal court to pause its ongoing litigation against Binance, the world’s largest cryptocurrency exchange. The move suggests that the commission is re-evaluating its previous enforcement actions.
Key Legislation on the Horizon
Sacks and crypto-friendly lawmakers are optimistic about the passage of two key pieces of legislation that would provide much-needed regulatory clarity:
1. Stablecoin Regulations
One bill focuses on stablecoins, a category of cryptocurrencies pegged to traditional currencies like the U.S. dollar. The proposed law would establish reserve requirements and operational guidelines for stablecoin issuers to ensure stability and consumer protection.
2. Defining Crypto as Securities vs. Commodities
The second major bill aims to clarify how digital assets are classified and regulated.
- Some crypto assets—like Bitcoin (BTC)—would likely be treated as commodities, similar to gold or oil, with oversight from the Commodity Futures Trading Commission (CFTC).
- Others—such as certain tokenized securities—would remain under SEC jurisdiction.
The distinction is crucial, as securities face stricter regulations than commodities. While similar legislation has stalled in previous years, industry insiders believe there is now strong bipartisan support for passing these measures.
Crypto’s Growing Political War Chest
One major reason for this shift in legislative sentiment is the crypto industry’s massive political spending. Fairshake, a crypto-focused Super PAC, was one of the biggest spenders in the last election cycle. The group has already raised a substantial war chest for the upcoming midterms.
A major victory for the crypto lobby last year was helping defeat former Senator Sherrod Brown, a Democrat from Ohio who was a vocal critic of digital assets. Brown previously chaired the Senate Banking Committee and had pushed for stricter crypto regulations.
Now, many Democrats are recalibrating their stance. Crypto investor Anthony Scaramucci, who briefly served as Trump’s communications director, noted that Democratic lawmakers are wary of alienating the crypto industry.
“They don’t want to be in the 2026 campaign having a crypto army against them,” Scaramucci said.
Crypto’s Boom-and-Bust Political Influence
The crypto industry’s political influence has been marked by periods of extreme highs and devastating lows.
- Just a few years ago, Super Bowl commercials were filled with celebrity endorsements of crypto firms, and executives like Sam Bankman-Fried (SBF) had direct access to Washington’s power players.
- That influence collapsed following Bankman-Fried’s downfall, the implosion of FTX, and other high-profile scandals.
- However, with Trump back in office, crypto’s political clout has resurged.
Despite presenting a united front during the election cycle, divisions within the industry remain.
For example, Ripple CEO Brad Garlinghouse recently suggested that a proposed U.S. government reserve of cryptocurrencies should include multiple digital assets, not just Bitcoin.
However, this idea faced immediate backlash from Bitcoin maximalists, who argue that Bitcoin is the only truly decentralized and censorship-resistant cryptocurrency.
Meanwhile, a new JPMorgan report warned that proposed stablecoin regulations could create challenges for Tether (USDT), the world’s largest stablecoin.
In response, Tether’s CEO fired back on social media, dismissing JPMorgan’s concerns and accusing the bank of bias.
The Future of Crypto Regulation in the U.S.
The crypto industry is at a pivotal moment. With a favorable political climate, a growing lobbying presence, and new regulations on the horizon, the future looks promising for digital assets. However, significant challenges remain, from internal industry divisions to the need for clear, fair, and enforceable laws.
For now, one thing is clear: Crypto’s influence in Washington has never been stronger.
The question is—will the industry use this moment to secure lasting regulatory clarity, or will internal conflicts and shifting political winds slow progress?
Acknowledgment: This article was written with the help of AI, which also assisted in research, drafting, editing, and formatting this current version.
