Donald Trump's election victory in 2024 could lead to notable shifts in US crypto regulation. Top attorney Lewis R. Cohen highlights potential changes in leadership at regulatory bodies such as the SEC and CFTC, signaling a shift from 'regulation by enforcement' to focusing on real market risks.
Cohen anticipates more balanced settlement terms in cases of technical violations and adjustments in the classification of key cryptocurrencies like SOL, ADA, and AVAX. The current classification landscape is evolving, favoring a more nuanced approach that aligns with recent court rulings.
Immediate impacts could be seen in 2025, with policy shifts over the following year. Federal deregulation might trigger stricter state-level enforcement, creating a complex compliance landscape. Congressional approaches to crypto legislation, although shifting, may become less urgent.
Trump's advocacy may indirectly influence US-China dynamics through tokenization. The idea of establishing a federal Bitcoin reserve faces skepticism, posing political and market risks. Industry vigilance is crucial during the pre-inauguration transition, as current administration's final actions may set the regulatory stage for Trump's term.
The appointment of a crypto-friendly Treasury Secretary is pivotal, with policy implications towards both domestic and foreign agendas. This strategic role could shape the future of Web 3 policies under the new administration, balancing support with innovation in the crypto space.
