Trump and Crypto Industry Team Up To Fight Biden's 'Debanking' War on Digital Asset Firms

In a surprising turn of events, the crypto industry has found an unlikely ally in the Trump administration, as they join forces to combat the so-called 'debanking' war waged by the Biden administration on digital asset firms. The Trump administration's pro-crypto stance has led to unprecedented interagency cooperation on digital asset regulations, with federal agencies, congressional committees, and industry representatives working together to build a clear regulatory framework for digital assets.



The Trump administration's push for pro-crypto policies has led to an unprecedented level of interagency coordination in Washington. Federal agencies, congressional committees, and industry representatives are reportedly working together to build clear regulatory frameworks for digital assets. This shift from previous years of regulatory friction is a welcome change for the crypto industry, which has long sought clarity and support from the government.

One of the key figures driving this interagency collaboration is David Sacks, the President Trump-appointed US Crypto and AI Czar. Sacks has credited his associate Bo Hines for ensuring smooth coordination among different agencies, stating that the inter-agency Working Group on Digital Assets is working well together to implement the President's agenda. Consensys lawyer and former US Department of Justice official Bill Hughes has echoed these sentiments, noting that federal officials are "playing well with each other" without bureaucratic conflicts.



The Trump administration's pro-crypto stance is a sharp departure from the policies under former President Joe Biden, whose administration aggressively pursued regulatory enforcement against the industry. During Biden's tenure, the SEC and other regulators cracked down on major crypto exchanges, including Coinbase and Binance, alleging they were operating in violation of US securities laws. The companies denied the allegations, but the lawsuits created an uncertain regulatory climate.

Trump, in contrast, has positioned himself as a "crypto president," actively courting support from the digital asset industry. Crypto enthusiasts trust that the GOP leaders will help craft new regulations to clarify whether cryptocurrencies should be classified as securities, commodities, or another financial category.

One of the major developments following the US President's directive was the SEC's decision to rescind Staff Accounting Bulletin 121 (SAB 121), which had made it "costly" for public companies to hold cryptocurrencies on behalf of customers. Industry leaders had long argued that SAB 121 discouraged institutional adoption of digital assets, and its removal is seen as a victory for crypto firms.



Post-Biden, congressional lawmakers from both the House and Senate have reportedly aligned with the administration's vision for crypto regulation. Representatives French Hill and Bryan Steil confirmed that the Bicameral Working Group for Digital Assets is in sync with the Presidential Working Group in drafting new legislation. Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews -FREE Cheat Sheet

In conclusion, the Trump administration's pro-crypto stance and interagency collaboration have created a more favorable regulatory environment for the crypto industry. With the SEC rescinding SAB 121 and congressional lawmakers working on new legislation, the future looks promising for digital asset firms. As the crypto industry continues to grow and evolve, it is crucial for regulators to keep pace with these developments and provide clear, supportive guidance to foster innovation and protect investors.