U.S. Crypto Policy Shifts Amid Political Clashes and Regulatory Progress

This past week, U.S. crypto policy was thrust into the spotlight, with significant developments occurring both in political and regulatory spheres. The week saw a notable clash between former U.S. President Donald Trump and tech billionaire Elon Musk, as well as progress in legislative efforts to regulate digital assets. Additionally, the U.S. Treasury Department repealed controversial broker reporting rules, and a new crypto-savvy chief was confirmed for the Office of the Comptroller of the Currency (OCC).

Trump's criticism of Musk came in response to Musk's announcement of the formation of a new political party, the "America Party." Trump, who has long been critical of third-party movements, described Musk as a "train wreck" and argued that such ventures would only lead to disruption and chaos. This exchange highlighted the growing ideological rift between the two influential figures, who have differing views on technology, freedom of speech, and digital assets. Trump also criticized the Democratic Party for losing both their "confidence and their minds" in the ongoing cultural and financial shifts, particularly regarding crypto policy.

Meanwhile, constructive progress on crypto regulation was made in Washington. Senate Banking Committee Chairman Tim Scott led a hearing titled “From Wall Street to Web3,” the Senate’s first full committee hearing focused on digital assets. Scott emphasized that blockchain technology and digital assets are here to stay and urged lawmakers to build a robust and balanced regulatory framework that protects investors while allowing innovation to thrive. His comments were supported by testimony from industry leaders, including Ripple CEO Brad Garlinghouse, Blockchain Association’s Summer Mersinger, and Chainalysis co-founder Jonathan Levin. Scott stressed the importance of America maintaining a leadership role in shaping the future of digital finance, rather than ceding influence to other jurisdictions.

The hearing highlighted bipartisan acknowledgment that digital asset markets require clearer regulatory guidance, even as lawmakers differ on the methods of implementation. This bipartisan support is crucial for the development of a comprehensive regulatory framework that can foster innovation while protecting investors.

In a significant move for decentralized finance (DeFi) advocates, the U.S. Treasury Department officially repealed a controversial broker reporting rule. The regulation, introduced under the Biden administration in late 2024, sought to impose broker-level reporting requirements on entities involved in DeFi and crypto infrastructure. Following a successful challenge under the Congressional Review Act and a signature from President Trump, the rule has been nullified. The repealed rule, titled “Gross Proceeds Reporting by Brokers,” would have required extensive data collection from DeFi platforms. Its repeal has been welcomed by industry groups, who saw the rule as overly broad and detrimental to innovation. The Treasury will now revert to pre-2024 guidance, which exempts validators and wallet providers from broker classification, marking a key policy win for decentralized systems.

Regulatory leadership in the U.S. is also taking a crypto-savvy turn with the confirmation of Jonathan Gould as the new head of the Office of the Comptroller of the Currency (OCC). Gould, a former Bitfury executive with deep experience in blockchain and financial policy, was approved by a 50-45 Senate vote. His appointment shows a potential shift in how the U.S. banking regulator approaches digital asset oversight. During his prior tenure at the OCC under the Trump administration, Gould helped shape key positions on fintech and crypto integration in banking. With his return, stakeholders hope the agency will adopt a more innovation-forward stance, especially as traditional banks explore blockchain-based products such as tokenized deposits and on-chain settlement rails.

Together, this week’s events reflect the growing entanglement between crypto, regulation, and politics. Whether through partisan clashes or bipartisan hearings, the evolution of U.S. digital asset policy is entering a more complex and consequential phase. The developments highlight the need for a balanced regulatory framework that can foster innovation while protecting investors, as well as the importance of bipartisan support in shaping the future of digital finance.