In Jan. 20, 2025, the United States will begin a new chapter in more ways than one. As the nation focuses on the inauguration of President Trump as our 47th President, the US financial sector will celebrate the resignation of Joe Biden’s Securities and Exchange Commission Chair Gary Gensler.
As a member of the House Financial Services Committee, I know Gensler’s heavy-handed approach to stifling innovation and stymieing America’s economic engine. His assertive stance is particularly damaging to the growing field of cryptocurrency and blockchain technology.
While touting his actions as measures to protect investors, Gensler used artificial ambiguities to undermine the growth and technological advances that make US markets competitive and drive promising offshore projects , including building the next generation of the internet.
Under Gensler’s leadership, the SEC’s enforcement-oriented agenda has often done more harm than good, and “regulatory uncertainty” has been used to attack American crypto exchanges such as Bittrex, Kraken, and Coinbase, along with Bittrex was bluntly citing the effects of Gensler’s approach when it came out the US market.
The question is not whether cryptocurrency needs regulation – it undoubtedly does. Cryptocurrency, by its very design, challenges traditional financial systems and demands an entirely different regulatory framework — one that balances consumer protection with the need to promote innovation. With the price of bitcoin recently surpassing the $100,000 threshold, digital assets have shown their staying power, and investors have embraced their potential.
Last year, I was proud to help the House pass the Financial Innovation and Technology for the 21st Century Acta bill endorsed by our incoming Financial Services Chair French Hill. FIT 21 represents a groundbreaking shift in the legislative landscape and will establish a responsible new regulatory framework that clearly defines the role of the SEC and the Commodity Futures Trading Commission. It will offer much-needed clarity to a rapidly evolving market and, unlike the SEC’s heavy-handed enforcement playbook, FIT 21 promotes both transparency and innovation and protects consumers without stifling creativity . I commend Rep. Hill for his work on this, and look forward to his continued efforts alongside President Trump in this arena.
President Trump demonstrated a keen understanding of cryptocurrency’s transformative potential during his historic campaign. Polling shows that his acceptance of these issues has helped him gain broad support from younger and more diverse voters for whom cryptocurrency is a staple of everyday life.
In his first administration, President Trump’s SEC worked with the crypto industry to enforce securities laws without alienating innovators, offering clear guidance through landmark initiatives such as DAO report and the Framework for Investment Contract Review of Digital Assets.
These resources provided critical insights to help entrepreneurs navigate compliance while developing groundbreaking technologies.
Beyond the Biden administration’s hostility to crypto, Chuck Schumer and Senate Democrats refused to consider FIT 21 after it passed the House with overwhelming, bipartisan support. Moreover, in New York, the courts blocked Governor Hochul’s attempt to shut down bitcoin miners by deploying the state’s radical climate law.
In anticipation of the return of President Trump and Republican majorities in the House and Senate, the crypto market is booming, with bitcoin prices up as much as 33% since Election Day. Moreover, President Trump’s new cabinet and the Department of Governmental Efficiency could change the way federal agencies operate and save taxpayers billions by integrating blockchain technology across government .
With President Trump appointing Paul Atkins as the next SEC Chair, we can expect a more thoughtful and transparent governance approach and policies that encourage innovation while protecting investors — setting the stage for the cryptocurrency sector to thrive and blockchain and the creation of high-paying new jobs in America. We can overcome the missed opportunities during the Biden administration and build a framework that positions the US as a leader in the global digital economy.
