President Donald Trump took to Truth Social tonight to declare the US is now the crypto capital of the world while criticizing the previous leadership of the Securities and Exchange Commission during the Biden Administration.
Former SEC Chair Gary Gensler sought to undermine digital asset innovation, choosing regulation-by-enforcement during his tenure and thereby missing out on a historic opportunity to improve capital markets in a transformational way. While Gensler will not earn a footnote in the annals of securities law, current SEC Chairman Paul Atkins will be remembered as the leader who embraced financial innovation for the betterment of all.
Trump stated that Gensler and the “anti-crypto army” nearly destroyed the crypto industry by driving innovation offshore.
At the same time, he touted his leadership in saving the US digital asset industry.
“America is now the CRYPTO CAPITAL of the WORLD, and Builders and Entrepreneurs are coming BACK to the United States where they belong. Under my Leadership, we will codify a FUTURE-PROOF Digital Asset Market Structure that cannot be undone by the Crypto Haters. The new Frontier of Finance is being Built in America, and “TRUMP” will NEVER let Crypto down! President DONALD J. TRUMP”
Meanwhile, the CLARITY Act, crypto market infrastructure legislation, has been approved by the Senate Banking Committee but has yet to be scheduled for a full vote in the Senate. While the legislation has garnered bipartisan support, political horse-trading over the details is ongoing.
Senator Cynthia Lummis, a key supporter of crypto and the CLARITY Act, stated today that if the legislation isn’t approved by Congress soon, software developers in the digital asset sector may be targeted for prosecution at a later date, alluding to the ambiguity in the legal treatment of DeFi.
Kristin Smith, former Blockchain Association CEO and current President of the Solana Institute, noted there is more work to do regarding negotiations and potential amendments.
“A vote for Clarity is a vote for regulation: clear rules, real oversight, strong consumer protections, and accountability, stated Smith… “The goal remains clear: protect consumers, strengthen markets, and keep innovation in America.”
While supporters outnumber the opposition, there remain strong voices in Congress who want to destroy crypto. Senator Elizabeth Warren, ranking member on Senate Banking, fought hard during the markup hearing for the CLARITY Act to derail the legislation.
Better Markets, an erstwhile consumer-protection advocacy group, has proclaimed that it is “standing up to the lawless crypto industry,” calling it the “pixie dust of innovation.” The group ignores the obvious benefits of blockchain technology and a regulated digital asset industry, which will lower costs, improve security, and add features for capital markets, including for retail participants.
