On January 20, 2025, the United States begins a new chapter in many ways. While the nation focuses on President Trump's inauguration as the 47th president, the U.S. financial industry will celebrate Joe Biden's resignation of Securities and Exchange Commission Chairman Gary Gensler.
As a member of the House Financial Services Committee, I am well aware of Mr. Gensler's heavy-handed approach to stifling innovation and crippling America's economic engine. His punitive stance has been particularly harmful in the burgeoning field of cryptocurrencies and blockchain technology.
While touting his actions as investor protection measures, Mr. Gensler has used unnatural ambiguity to increase the competitiveness of the U.S. market and secure promising projects overseas, including the development of the next generation of the Internet. It undermined the growth and technological progress it promoted.
Under Gensler's leadership, the SEC's enforcement-focused agenda has often done more harm than good, using “regulatory uncertainty” to undermine American crypto exchanges like Bittrex, Kraken, and Coinbase. Bittrex explicitly cited the influence of Gensler's approach when it withdrew from regulation. US market.
The question is not whether cryptocurrencies need regulation, but there is no doubt that they do. By their design, cryptocurrencies challenge traditional financial systems and require an entirely different regulatory framework that balances the need to protect consumers and foster innovation. Bitcoin's price recently breached the $100,000 threshold, demonstrating the digital asset's staying power, and investors are already embracing its potential.
Last year, I was proud to help pass the 21st Century Financial Innovation and Technology Act in the House of Representatives. This bill is sponsored by incoming Financial Services Commissioner French Hill. FIT 21 represents a landmark change in the legislative environment and will establish a responsible new regulatory framework that clearly defines the roles of the SEC and the Commodity Futures Trading Commission. This provides much-needed clarity in a rapidly evolving market, and unlike the SEC's enforcement-focused strategy, FIT 21 promotes transparency and innovation, without stifling creativity. Protect consumers. I commend Congressman Hill's work in this area and look forward to working with President Trump on continued efforts in this area.
During his historic campaign, President Trump demonstrated a keen understanding of the transformative potential of cryptocurrencies. Polls show that his focus on these issues has helped him win broad support among young and diverse voters for whom cryptocurrencies are a staple of everyday life.
During his first administration, President Trump's SEC worked with the crypto industry to enforce securities laws without alienating innovators and provided clarity through groundbreaking efforts such as the DAO report and the Digital Asset Investment Contract Analysis Framework. provided guidelines.
These resources provided important insights to help entrepreneurs stay compliant while building breakthrough technology.
Beyond the Biden administration's hostility toward cryptocurrencies, Chuck Schumer and Senate Democrats refused to consider FIT 21 after it passed the House with overwhelming bipartisan support. Additionally, in New York, a court blocked Governor Hochul's attempt to shut down Bitcoin miners by introducing the state's radical climate change law.
Cryptocurrency markets have been booming in anticipation of President Trump's return and Republican majorities in both houses of Congress, with the price of Bitcoin rising as much as 33% since Election Day. Additionally, President Trump's new Cabinet and the Department of Government Efficiency have the potential to revolutionize the way federal agencies operate and save taxpayers billions of dollars by integrating blockchain technology across the government. There is.
President Trump's appointment of Paul Atkins as the next SEC Chairman promises a more thoughtful and transparent approach to governance and policy that fosters innovation while protecting investors, and the crypto and blockchain sector. The stage will be set for the creation of prosperity and high standards of service. Paying new American jobs. We can build on the missed opportunities during the Biden administration and build a framework that positions the United States as a leader in the global digital economy.
