How the election is reshaping crypto and Bitcoin policy in the US
11/08/2024 07:39
After a decisive victory, Republicans are taking over U.S. crypto policy. Perianne Boring reveals how that's shaping up in Washington D.C.
With voters flipping key seats in favor of pro-crypto candidates, the crypto community is witnessing a transformative moment that could reshape the regulatory landscape in America.
Former President Donald Trump, now returning to office, has expressed ambitions to make the U.S. the global capital of crypto. His commitment, combined with a Republican majority in the Senate (and possibly the House as too-close-to-call races are settled,) has set the stage for a "crypto reset" that many believe will revitalize the industry after years of regulatory challenges.
The Digital Chamber founder Perianne Boring, who has been in talks with the Trump transition team about key appointments, joined Coinage to share her insights on the implications of this shift, highlighting both the promise and potential pitfalls as new policies are crafted. Most important among them, the likelihood of making good on the promise of a strategic Bitcoin reserve.
Senator Cynthia Lummis introduced legislation earlier this year that would see the U.S. buy a total of 1 million Bitcoin. President Trump at least committed to not selling the Bitcoin the U.S. already controls.
"She wants to buy 1 million Bitcoin and then that Bitcoin would be set aside for the only purpose would be to pay off our debt, which I think is really one of the few realistic plans that have ever been put forward to actually address our debt issue," Boring said. "So this will need support to get it through Congress, but if Republicans take the majority, which they're projected to do in the House ... a lot of critical things are in place to be able to get, you know, extremely powerful legislation like this through."
Importantly, key committee positions are likely to be filled by legislators who are markedly pro-crypto. For example, signs point to Senator Tim Scott leading the Senate Banking Committee. Sen. Scott shared the stage with Sen. Lummis at the Bitcoin Conference in Nashville earlier this year and rallied about why crypto is great and should be fostered in the U.S.
Boring underscored the importance of that in keeping crypto front and center, cautioning that “we need to ensure crypto remains a priority and we don’t get pushed to the sidelines because that has happened in previous sessions.”
As the political landscape shifts, Boring’s insights reflect a moment of unprecedented opportunity for the crypto industry. With support in Congress and a more favorable administration, crypto advocates see potential to shape a policy environment that aligns with the industry’s interests.
However, Boring also acknowledged the challenge of enacting meaningful change: “Crypto policy is quite sophisticated,” requiring leaders with a deep understanding of both “the traditional system” and the “new frontier of cryptocurrency.” With the right leaders, she believes, the U.S. could position itself as a global leader in digital assets while laying the groundwork for innovation and growth within its borders.
That could very well result in the U.S. becoming the first major economy to establish a Bitcoin reserve, if Republicans keep their campaign promises.