The Blockchain Association, a nonprofit representing crypto and blockchain businesses in the U.S., sent a letter to president-elect Donald Trump and Congress on Friday. In the letter signed by Blockchain Association CEO Kristin Smith, the organization outlined five priorities for the first 100 days of Trump’s administration.
While the whole of crypto industry has been calling for a replacement of Gary Gensler, the U.S. Securities and Exchange Commission (SEC) chairman, Smith believes that to be insufficient. According to Smith, an overhaul of the leadership at the Internal Revenue Service (IRS) and the Treasury Department is also required.
The SEC is an independent agency and as President Trump will not have the authority to fire Gensler—something he promised to do on his first day back at the White House during his campaign. However, earlier this week, Gensler announced that he will be stepping down from his role to make way for Trump’s replacement on Jan. 20, 2025, the same day that Trump is scheduled to retake the White House.
According to the letter, the taxation of digital assets has been inconsistent and the ‘Broker rule’ recently introduced by the IRS may drive companies offshore. In July 2024, the IRS mandated that all brokers are required to disclose gross proceeds as well as gains and losses from selling crypto, stablecoins, and non-fungible tokens (NFTs).
The letter also stated that the Treasury Department needs to be welcoming to software developers and prioritize privacy of U.S. citizens.
Smith also called for Trump to roll back the SAB 121 accounting guideline that requires listed companies to count crypto assets in their balance sheets. In the letter, Smith called the guideline ‘punitive’ and ‘anti-crypto.’
The letter listed the establishment of a ‘fit-for-purpose’ regulatory framework for cryptocurrencies among the suggested priorities. The regulations should strike a balance between protecting customers and encouraging innovation, the letter stated.
Smith further wrote that crypto companies have long been denied access to traditional banking and called for an end to the practice. The letter noted:
“Crypto companies and users have been unjustly denied access to traditional banking rails critical to paying employees, vendors, and taxes. This practice should end immediately.”
Lastly, the letter suggested that Trump should create a crypto advisory council to work with Congress and regulatory watchdogs. The Blockchain Association believes that public and private partnerships are key to establishing “smart rules that work.”
Mentioned in this article
Credit: Source link