Trump's Victory: Green light for Crypto Laws?

The cryptocurrency industry is anticipating a swift approval of crypto-related laws following Donald Trump's re-election victory, as indicated by Coinbase's top policy executive. Faryar Shirzad, chief policy officer at Coinbase, expects the U.S. Congress to rapidly approve key crypto bills, with the Republican Party securing a governing trifecta.

Shirzad believes that the most pro-crypto Congress ever, coupled with an extraordinarily pro-crypto president-elect, will allow the interests of the 50 million Americans who own crypto to be heard in policy. He is optimistic about the passage of two significant crypto-related bills: the Financial Innovation and Technology for the 21st Century Act (FIT 21) and the Clarity for Payment Stablecoins Act.

FIT 21 aims to establish a legal framework for digital assets, while the stablecoin bill seeks to regulate issuers of stablecoins, tokens pegged to the value of fiat currencies like the dollar. With the Republican Party controlling both the House of Representatives and the Senate, the path for crypto laws appears smoother, potentially leading to their passage in 2025.

The crypto industry's influence on politics and lobbying efforts has significantly increased, with PACs and advocacy groups like Stand With Crypto raising over $245 million during the 2024 election cycle. This influence, combined with a Republican trifecta and a pro-crypto president-elect, is expected to accelerate the approval of crypto laws.



Paul Grewal, Coinbase's Chief Legal Officer, expects a reset in crypto policy across multiple federal agencies, including the SEC, CFTC, and Treasury Department. This shift is anticipated to focus on rule-making and dialogue rather than litigation, fostering a more productive regulatory environment for the crypto industry.

Grewal hopes to see a bipartisan approach, with both Democrats and Republicans participating in shaping practical crypto regulations. He believes that the current SEC commissioner, Hester Peirce, would be an excellent candidate for the chair, as she has been an outstanding voice on crypto issues for years and has a deep appreciation for the need to promote innovation while keeping investors safe.



In conclusion, Trump's victory and the Republican Party's governing trifecta have created a favorable environment for the swift approval of crypto laws. With the crypto industry's increased influence on politics and the expected shift in regulatory approaches, the future looks bright for the crypto market. Investors in crypto-related companies may benefit from the enhanced regulatory clarity and growth opportunities that these laws could bring.
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