The cryptocurrency industry is buzzing with anticipation following the election of Donald Trump, with Coinbase’s chief policy officer, Faryar Shirzad, predicting a rapid surge in US cryptocurrency regulation under the incoming Republican administration. Shirzad’s optimistic outlook stems from Trump’s pro-crypto stance and the Republican Party’s sweeping victory, securing a trifecta of control over the presidency, House of Representatives, and Senate. This political landscape, he believes, will pave the way for the swift passage of crucial crypto legislation, finally giving voice to the estimated 50 million Americans who own cryptocurrencies.
Key Takeaways: A New Dawn for Crypto Regulation?
- Coinbase predicts rapid crypto regulation under the Trump administration.
- A Republican trifecta in US government ensures smoother legislative pathways.
- Significant crypto-related lobbying efforts significantly influenced the election outcome.
- Key legislation like the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act are anticipated to pass.
- The upcoming change in leadership at the SEC is expected to bring a more crypto-friendly approach.
A Pro-Crypto Congress and Presidency
Shirzad’s confidence stems from what he describes as the “most pro-crypto Congress ever,” coupled with a president-elect who campaigned on a platform openly supportive of cryptocurrencies. He envisions a scenario where the interests of millions of American cryptocurrency holders are finally heard and addressed through impactful policy changes. **”We have the most pro-crypto Congress ever [in] history, we have an extraordinarily pro-crypto president coming into office,”** Shirzad stated emphatically. **”I think the combination should finally allow the 50 million Americans who own crypto to have their interests and voice heard in policy.”** This sentiment encapsulates the industry’s collective hope for a future marked by clearer regulatory frameworks and a more favorable political landscape.
Legislative Action on the Horizon
Two pieces of legislation are central to this optimistic outlook. The first, the Republican-sponsored Financial Innovation and Technology for the 21st Century Act, aims to establish a comprehensive legal framework for digital assets, providing much-needed clarity for the industry. This bill has already passed the House of Representatives. The second, the Clarity for Payment Stablecoins Act, focuses on creating a regulatory regime for stablecoins—cryptocurrencies pegged to fiat currencies like the dollar. While the stablecoin bill hasn’t yet passed a House vote, Shirzad remains “optimistic” about its passage, although he acknowledges a “small” chance of its consideration during the post-election “lame duck” session. Even if these bills don’t become law this year, Shirzad anticipates “significant movement and hopefully passage of both market structure legislation and stablecoin legislation” in 2025.
The Influence of Crypto Lobbying
The significant shift in the political landscape is not accidental. The cryptocurrency industry has invested heavily in lobbying efforts, demonstrating the power of collective action and strategic political engagement. Crypto-related political action committees (PACs) and other affiliated groups raised over $245 million, according to Federal Election Commission data, significantly impacting the campaign financing landscape and showcasing the industry’s growing political influence.
The Stand With Crypto Alliance: A Key Player
The Coinbase-backed Stand With Crypto Alliance played a critical role in this effort. The alliance developed a grading system to evaluate the stance of House and Senate candidates on cryptocurrency issues. Their assessment indicates that nearly 300 pro-crypto lawmakers will occupy seats in the House and Senate, indicative of the considerable success of their lobbying efforts.
The SEC and a Potential Leadership Change
Adding to the air of anticipation is the upcoming departure of SEC Chair Gary Gensler on January 20th, coinciding with Trump’s inauguration. Trump had openly voiced his intention to replace Gensler, whose tenure has been marked by a relatively aggressive approach to crypto regulation. While Shirzad can’t speculate on Trump’s specific SEC pick, he anticipates a nominee who shares Trump’s vision for the cryptocurrency industry: **”I think as long as he picks somebody who’s a change agent and who shares his shares his vision, I think it’ll be good for the U.S., good for society, good for the people that own crypto.”** This expectation of a more favorable regulatory environment further amplifies the optimism within the crypto community.
Looking Ahead: A New Era of Crypto Regulation?
The coming months will be pivotal for the cryptocurrency industry in the United States. Shirzad’s predictions suggest a period of accelerated regulatory activity, driven by a pro-crypto political climate and the substantial resources invested in lobbying efforts. The incoming administration’s approach to crypto regulation, coupled with the legislative priorities outlined, will define the trajectory of the American crypto market for years to come. The success of pending legislation and the appointment of a new SEC chair will be key factors determining whether this optimistic outlook materializes into a new era of clear, favorable crypto regulations in the United States.
