How the Election Is Reshaping Crypto & Bitcoin in the US

With voters flipping key seats in favor of pro-crypto candidates, the crypto community is witnessing a transformative moment that could reshape the regulatory landscape in the country.

Former President Donald Trump, now returning to office, has expressed ambitions to make the U.S. the global capital of crypto. His commitment, combined with a Republican majority in the Senate (and possibly the House as too-close-to-call races are settled,) has set the stage for a "crypto reset" that many believe will revitalize the industry after years of regulatory challenges.

The Digital Chamber founder Perianne Boring, who has been in talks with the Trump transition team about key appointments, joined Coinage to share her insights on the implications of this shift, highlighting both the promise and potential pitfalls as new policies are crafted.

“One in 7 active voters are in the crypto voter bloc,” Boring said, and “crypto was a determining factor for who they’re going to vote for at the polls.” With over 250 pro-crypto members expected in Congress, Boring called this transformation “absolutely amazing.” Just a few years ago, the crypto industry felt “sidelined and silenced,” yet it now enjoys “overwhelming bipartisan support across the aisle, across all chambers.”

Reflecting on the growth of crypto’s influence, Boring pointed out, “It’s beyond an accomplishment…that hard work has paid off. So we’re very excited. And the sky’s the limit at this point on what we can achieve.” For Boring, this marks a turning point: “I think we’ll have a whole reset for crypto here in the United States that’s going to be very, very positive for our community and just for the American people in general.”

The End of Regulation by Enforcement?

The Biden administration's approach to crypto, spearheaded by SEC Chair Gary Gensler, relied heavily on "regulation by enforcement," a tactic that many in the crypto community viewed as hostile. This method drove some of the brightest minds and most innovative companies overseas. Now, with the Trump administration back in power, the emphasis may shift toward providing regulatory clarity that supports innovation while protecting consumers.

Boring described the need for new leadership at the SEC to "end the regulation by enforcement agenda" and clean up what she described as the “mess” left by Gensler. An early contender for the SEC chair role could be Commissioner Hester Peirce, also known as "Crypto Mom" for her pro-crypto stance. According to Boring, whether it's Peirce or not, Trump's team is committed to restoring a balanced approach that supports both innovation and investor protection.

Commissioner Peirce, who has previously derided Chair Gensler's policy positions and downplayed the importance of the Chair's role in a January Coinage interview, declined comment on whether she could potentially be tapped to steer the agency.

While the SEC has taken center stage in recent years, Boring believes it should actually be the Commodity Futures Trading Commission (CFTC) leading the charge. Cryptocurrencies like Bitcoin are widely viewed as commodities, which naturally places them within the CFTC’s jurisdiction. By expanding the CFTC’s role, she envisions the U.S. becoming the “lead jurisdiction for digital asset markets,” with the agency focusing on creating “healthy, robust, deep liquid markets here for the crypto asset space.”

With a Republican majority in the Senate and the possibility of Republican control in the House, Boring sees greater potential to push pro-crypto legislation. She highlighted two bills that have “really taken the spotlight”: market structure legislation and stablecoin legislation. However, she acknowledged that there may be political maneuvering in timing the passage of these bills. “If they also take the House…they may be in a better position to negotiate next year,” she noted, adding that “the likelihood of getting something done just because of those political reasons…has gone down.”

Boring stressed the need for committed leadership, especially for roles like “speaker of the House or Senate Majority Leader, the chair of the Banking Committee or the House Financial Services Committee.” She underscored the importance of keeping crypto front and center, cautioning that “we need to ensure crypto remains a priority and we don’t get pushed to the sidelines because that has happened in previous sessions.”

As the political landscape shifts, Boring’s insights reflect a moment of unprecedented opportunity for the crypto industry. With support in Congress and a more favorable administration, crypto advocates see potential to shape a policy environment that aligns with the industry’s interests. However, Boring also acknowledged the challenge of enacting meaningful change: “Crypto policy is quite sophisticated,” requiring leaders with a deep understanding of both “the traditional system” and the “new frontier of cryptocurrency.” With the right leaders, she believes, the U.S. could position itself as a global leader in digital assets while laying the groundwork for innovation and growth within its borders.

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