President Donald Trump has not been quiet about his interest in strongly supporting the digital assets industry. While he has not taken many definitive actions to make this a reality since becoming president, his recent executive order underscores the friendlier approach his administration is expected to take toward the sector.
Changes made at the Securities and Exchange Commission and the Commodity Futures Trading Commission complement the tone shift from the White House. Both agencies issued news releases on the promotion of commissioners to acting chair positions that are much friendlier to the industry. Additionally, the SEC launched a crypto task force and formally rescinded Staff Accounting Bulletin 121.
While the specifics of new policies from the White House and the regulatory agencies have been minimal, these actions can best be seen as laying the groundwork for future action. The tone shift, while widely expected, is significant in itself. To some extent, the lack of immediate policy changes reflects the reality of governing more than a change in how much the Trump administration will prioritize creating an industry-supported regulatory framework.
Furthermore, in many ways, the Trump administration is still trying to get its feet solidly underneath it, as the president’s Cabinet and key regulatory heads remain unconfirmed. It will likely be a few more months before the Senate confirms Trump’s SEC chair nominee, Paul Atkins, and the president has still yet to name a permanent head at the CFTC. So, while there may not be many immediate policy changes, the Trump administration’s early steps are signals that reform is coming in due time.
One uncertainty at this point in the Trump administration’s crypto strategy is how it will influence Congress’s efforts to pass legislation. It could either push to adjust particular aspects of the bills under consideration or play more of a supporter role but not be involved with shaping the policy of the measures. Unified Republican control of Congress has significantly increased the chances of being able to pass major legislation, such as bills governing stablecoins or market structure.
However, with other more pressing issues demanding lawmakers’ attention, such as tax reform, immigration, government funding, the debt ceiling, and confirming Trump’s nominees, as much as crypto bills may be a priority, they will likely be pushed later into this year, or potentially next year, for consideration. As long as the budget reconciliation bill (or bills) remains unpassed, it will continue to take most of the legislating oxygen out of Congress and push aside most other legislation until it is done. While House Speaker Mike Johnson (R-La.) is optimistic about moving budget reconciliation quickly, according to NBC News, there is a chance that it will not pass until the end of July or even closer to the end of the year when the last provisions from the Tax Cuts and Jobs Act expire.
Even if there is not likely to be serious attention on crypto measures in Congress for several months, it remains worth following key lawmakers and committees for signs of incremental progress toward a consensus on the bill text and how many Democrats may be willing to back the efforts. For example, the House Financial Services Committee Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence will hold a hearing examining the path forward for digital assets in the coming weeks, allowing lawmakers to sketch out their hopes for the new Congress. Other crypto-related hearings primarily focus on de-banking for now, but that will likely shift with attention moving toward legislation in the months ahead.
The bottom line is that while proposals from Congress have a much higher chance of getting across the finish line and then being signed into law by Trump, the road ahead is still lengthy. The tone shifts from federal regulators and the White House ushered in under the Trump administration is the most significant near-term change, but achieving meaningful regulatory successes will require patience. The groundwork for change is being put in place, but given the nature of the federal government’s processes, realizing those objectives will take time.