The Blockchain Association, a nonprofit organization representing crypto and blockchain businesses in the United States, sent a letter to President-elect Donald Trump and Congress on Friday. In a letter signed by Blockchain Association CEO Kristin Smith, the association outlined five priorities for the Trump administration's first 100 days.
While the entire cryptocurrency industry is calling for the removal of U.S. Securities and Exchange Commission Chairman Gary Gensler, Smith doesn't think that's enough. Smith said there also needs to be an overhaul of leadership at the Internal Revenue Service (IRS) and the Treasury Department.
The SEC is an independent agency, and President Trump does not have the authority to fire Gensler. Gensler had promised to do so on his first day back in the White House during his campaign. But Gensler announced earlier this week that he would step down to replace Trump on January 20, 2025, the day Trump is scheduled to take back the White House.
The letter says that digital assets are inconsistently taxed and that the IRS's recently introduced “broker rule” could cause companies to move offshore. In July 2024, the IRS required all brokers to disclose not only their gains and losses but also their total revenue from the sale of cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).
The letter also says the Treasury Department must welcome software developers and prioritize the privacy of Americans.
Smith also called on President Trump to repeal SAB 121, an accounting guideline that requires publicly traded companies to include crypto assets on their balance sheets. In his letter, Smith called the guidelines “punitive” and “anti-cryptocurrency.”
Among the priorities proposed in the letter is establishing a “fit-for-purpose” regulatory framework for cryptocurrencies. The letter states that regulation needs to strike a balance between protecting customers and fostering innovation.
Smith also wrote that crypto companies have long been denied access to traditional banking services and called for an end to this practice. The letter stated:
“Cryptocurrency companies and users have been unfairly denied access to traditional banking rails essential to paying their employees, vendors, and taxes. This practice must end immediately.”
Finally, the letter suggested that President Trump should create a virtual currency advisory board to work with Congress and regulatory watchdogs. The Blockchain Association believes that public-private partnerships are the key to establishing “smart rules that work.”
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