The future of cryptocurrency in the US is largely determined by three factors.

Five years ago, when we established the Blockchain Association, it was uncertain whether the digital assets industry could effectively utilize a trade association to advocate its priorities before Congress and federal regulatory agencies. Back then, in Washington D.C., questions often revolved around the mere survival of cryptocurrencies in a few years, rather than diving into complex topics like market structure, taxation of non-fungible tokens (NFTs), or the constitutional protection of code. While these questions still require thorough examination, the endurance of cryptocurrencies is no longer in doubt. As the Blockchain Association marks its fifth anniversary since inception, it’s essential to take a moment to reflect on the past five years and anticipate the challenges that will shape the industry’s ability to advocate its case in the U.S. capital in the years to come. From former President Donald Trump’s critical tweets about Bitcoin to the rollercoaster ride of market gains and losses, the collapse of the Terra blockchain, and the rise of FTX, all while under the scrutiny of an increasingly adversarial Securities and Exchange Commission (SEC) intent on pushing the American crypto economy offshore, the digital assets industry has witnessed significant disruptions in recent years. Nonetheless, crypto adoption continues to expand. Several presidential campaigns have felt compelled to express support for the domestic digital assets industry. Despite the critical nature of some reports, it’s noteworthy that the Biden administration deemed the digital assets ecosystem important enough to issue an executive order directing federal focus on studying the technology and recommending responsible regulation. So, what lies ahead for crypto in Washington in the next five years? Given the dramatic ups and downs of the past half-decade, making precise predictions seems challenging. However, there are several areas where Congress, the White House, and federal regulatory agencies are likely to concentrate their efforts.

Anti-Money Laundering (AML) Challenges: A significant long-term issue revolves around AML efforts. While federal law enforcement agencies have become proficient at tracing illicit transactions on blockchain networks, high-profile cases, such as the ongoing action against the developers of Tornado Cash, illustrate the importance of this issue across the government. Although some tech-driven solutions have been proposed to address law enforcement concerns while preserving the privacy safeguards of services like Tornado Cash, AML will likely remain a contentious issue in the federal government’s broader acceptance of crypto.
Crypto-Specific Legislation and Pro-Crypto Politicians: The second issue is the most probable path for legislation to pass through both the House and Senate and become law. While crypto advocates celebrated the milestone this past summer when multiple crypto-specific bills cleared their respective House committees, the fate of these bills in the House and Senate now becomes the pressing question. It’s a reminder that supporting pro-crypto candidates for office remains the best long-term strategy for changing congressional perceptions of this technology.
Regulatory Personnel Changes: With a major election on the horizon, the composition of federal regulatory personnel is uncertain. Depending on the outcome of the 2024 presidential election, there could be significant changes at relevant regulatory agencies, bringing fresh faces with potentially more enlightened perspectives on digital asset development, use, and proliferation. Even if there is no change in the White House, recent legal setbacks at some agencies, notably the SEC, may compel crypto skeptics to consider a different approach as they attempt to regulate the domestic industry. Continued losses in court cases may lead agency staffers to seek alternative positions, potentially pushing crypto-friendly individuals to enter government service.

Looking Ahead to the Next Five Years

The past five years have not always been smooth for the digital asset ecosystem, but they have solidified the industry’s influential voice in Washington, D.C. At the Blockchain Association, we take pride in representing the industry and maintaining our unwavering mission: advancing the future of crypto in the United States. We will continue to advocate in Washington on behalf of our members and the industry as a whole for the next five years and beyond. Please note that the views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc. Get back to Seikum News 🤓

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