Vance Warns 3 Trillion Crypto Industry May Move Offshore Without Regulatory Clarity

United States Vice President J.D. Vance, speaking at the Bitcoin 2025 conference in Las Vegas, emphasized the urgent need for regulatory clarity in the digital asset space. Vance warned that without prompt action, the $3 trillion industry could be driven offshore, seeking more favorable jurisdictions. He advocated for a market structure bill that would integrate crypto into the mainstream economy without imposing restrictive regulations.

Vance highlighted the potential consequences of inaction, stating that the lack of regulatory clarity could lead to the loss of trillions of dollars to other countries. He also noted that establishing clear, pro-innovation rules would prevent future political conflicts over crypto regulation. Vance's remarks come as lawmakers in Washington are working on bills to regulate stablecoins and other digital assets, a process complicated by President Trump's involvement in the crypto industry.

Trump and his family have been involved in various crypto ventures, including the launch of their own memecoins and the recent introduction of a stablecoin by Trump-backed World Liberty Financial. These ties have raised concerns among some Democrats, leading to a temporary pause on a Senate stablecoin bill. The bill was later moved forward via cloture, allowing for further debate. A House hearing on digital asset regulation is scheduled for June 4.

Vance also announced that the Trump administration plans to remove regulators perceived as anti-crypto, including former U.S. Securities and Exchange Commission Chair Gary Gensler. While presidents have the authority to fire heads of federal agencies, there are limitations to this power. The U.S. Supreme Court recently ruled that the Trump administration can fire members of independent federal agencies, with some exceptions. Gensler stepped down in January, and the new SEC chair, Paul Atkins, has indicated a different approach to crypto regulation.

Vance's comments reflect a broader shift in the Trump administration's stance on crypto regulation. By advocating for a market structure bill and pledging to remove anti-crypto regulators, Vance signals a more supportive regulatory environment for digital assets. This could foster innovation and growth in the crypto sector, potentially leading to a more integrated and mainstream role for digital assets in the economy.

Vance also briefly mentioned his personal bitcoin holdings, stating that he still owns a significant amount of the cryptocurrency. This disclosure adds a personal dimension to his advocacy for crypto regulation, underscoring his commitment to the industry's growth and development.