The Blockchain Association, a nonprofit organization representing crypto and blockchain businesses in the United States, recently sent a letter to president-elect Donald Trump and Congress outlining five priorities for the first 100 days of Trump’s administration. The letter, signed by Blockchain Association CEO Kristin Smith, emphasized the need for leadership changes at the U.S. Securities and Exchange Commission (SEC), Internal Revenue Service (IRS), and the Treasury Department.
While many in the crypto industry have been calling for the replacement of SEC chairman Gary Gensler, Smith believes that simply replacing Gensler is not enough. She argues that an overhaul of leadership at the IRS and Treasury Department is also necessary. Gensler recently announced that he will be stepping down from his role to make way for Trump’s replacement on January 20, 2025.
One of the main concerns outlined in the letter is the inconsistency in the taxation of digital assets. The recent ‘Broker rule’ introduced by the IRS, which mandates all brokers to disclose gross proceeds and gains/losses from selling crypto, stablecoins, and NFTs, has raised concerns that it may drive companies offshore. The letter also emphasizes the need for the Treasury Department to prioritize the privacy of U.S. citizens and be welcoming to software developers.
Smith also called for the rollback of the SAB 121 accounting guideline, which requires listed companies to include crypto assets in their balance sheets. She described the guideline as ‘punitive’ and ‘anti-crypto.’ Additionally, the letter highlighted the importance of establishing a regulatory framework for cryptocurrencies that balances customer protection with innovation.
Another key point raised in the letter is the issue of crypto companies being denied access to traditional banking services. The Blockchain Association called for an end to this practice, stating that crypto companies and users should have access to traditional banking rails for paying employees, vendors, and taxes.
Lastly, the letter proposed the creation of a crypto advisory council to collaborate with Congress and regulatory watchdogs in developing smart regulations that support the industry. The Blockchain Association believes that public and private partnerships are essential for establishing effective rules that promote innovation while protecting consumers.
Overall, the letter from the Blockchain Association to president-elect Donald Trump and Congress highlights key priorities for the crypto industry and calls for proactive measures to address regulatory challenges and promote growth in the sector.