How Trump Can Help Crypto on Day One

Dear President-elect Trump,

As the co-head of a major law firm’s digital assets practice, I hope that your nominee to chair the Securities and Exchange Commission (SEC) will make much needed (and long overdue) reforms to the way the SEC regulates the crypto market. in the United States.

However, as it turns out, it will take some time for your nominee to be confirmed as SEC chairman and for him to develop new SEC guidance and rules for the crypto industry. With that in mind, I am writing to propose an Executive Order to be issued on the first day of the Presidency to help restore America’s leadership in the advanced crypto-financial system.

While other countries race to create regulatory transparency for crypto entrepreneurship to flourish, US lawmakers and regulators have refused to shape and modernize decades-old rules that have never applied to this new technology, leaving American market participants adrift. regulatory ambiguity. Meanwhile, the SEC has reopened cases before current chairman Gary Gensler against crypto companies, projects and founders based on allegations that they violated these outdated and anachronistic requirements, even without allegations of fraud or deception. real loss for investors.

Not surprisingly, this regulatory approach has driven many of the leading innovators and businesses in the digital asset sector offshore, threatening America’s leadership position in the global economy.

How we find our way back

The good news is that it’s not too late to change things. This is a once-in-a-generation opportunity to make America the world’s crypto capital and capitalize on the transformative promise that digital assets and blockchain technology hold for our country. While many legislative, regulatory, and tax reforms will be required to capitalize on this opportunity, there is one action you can take quickly to pave the way for a resurgence of the crypto sector in America – on your first day as President.

You can issue the following orders to all federal agencies on January 20:

1. All investigations of crypto-companies, projects and founders unless they involve credible allegations of (a) acts of fraud or other willful misconduct that harm investors or other victims, or (b) conduct that threatens our national security, cease enforcement actions and harassment immediately. security.

2. The relevant institution shall submit a written report to the President’s Office within 180 days on why it should not immediately stop such proceedings.

3. Immediately cease all investigations, enforcement actions, or prosecutions of crypto-companies, projects, or founders that do not warrant continued prosecution.

What the proposed executive order would do

This proposed Executive Order would be critical in reversing the chilling effect on the digital asset industry caused by the explosion of government litigation in recent years, including actions against good actors who fail to comply with outdated and unenforceable regulations. hurt an investor. The SEC, most notably, has mined billions of dollars to nullify — a financial penalty, several courts have ruled, that should only be used in cases where the alleged violation causes material harm to the alleged victims — in victimless crypto-legal lawsuits.

Many of these lawsuits have sought to impose harsh sanctions on legitimate crypto market participants in the United States who provide the digital infrastructure necessary for these markets to thrive. It’s time to reconsider this strict approach to compliance. The proposed Executive Order could achieve this on the first day of your Presidency.

Let me be clear, you have the authority to do this. Article II of the Constitution authorizes the President to unilaterally issue such Executive Orders without laws or regulations. The Ministry of Justice has a legal adviser gave an opinion Article II gives the President authority to compel all federal agencies, including independent regulatory agencies such as the SEC, to comply with the orders proposed here, which apply generally to all agencies of the Executive Branch.

You can make America the center of the global crypto economy. The proposed Executive Order could be your first step on the first day of your Presidency to achieve this goal.