The cryptocurrency industry is asserting its influence in Washington, emboldened by political gains and eager to secure regulatory clarity that could shape its future in mainstream finance.
When the Trump administration’s crypto czar, David Sacks, announced a new congressional working group aimed at advancing cryptocurrency regulation, many in the digital asset community were skeptical.
“There were a lot of people on X who felt like this wasn’t, you know, a mind-blowing announcement,” Sacks admitted on a podcast days later, referencing the social media platform formerly known as Twitter. However, he emphasized that having both the White House and key congressional figures committed to passing significant crypto legislation within a year—possibly within six months—was a landmark achievement. “We’ve never had that before, so that is pretty monumental,” he noted.
Political Gains and Industry Influence
Sacks’ remarks reflect a broader shift in Washington. After investing heavily in political campaigns to support Trump and other crypto-friendly lawmakers, the industry is more determined than ever to solidify its role in policy-making and financial markets.
“Time is critical,” Ji Hun Kim, president and acting CEO of the Crypto Council for Innovation, stated during a recent House committee hearing titled A Golden Age of Digital Assets: Charting a Path Forward.
The industry has already secured key victories under Trump’s leadership. The US Securities and Exchange Commission (SEC) repealed an accounting rule affecting digital assets, while the president issued an executive order directing a government working group to explore regulatory changes and consider establishing a strategic reserve of cryptocurrencies within 180 days.
Targeting Old Foes
As calls for more substantial reforms grow, some crypto firms are leveraging their influence to challenge long-standing adversaries.
Tyler Winklevoss, co-founder of the crypto exchange Gemini, announced that his company would no longer hire graduates from the Massachusetts Institute of Technology (MIT) in response to the school rehiring former SEC Chairman Gary Gensler.
“Not even interns for our summer intern programme,” Winklevoss declared on X. This follows a similar move by Coinbase’s CEO, who stated his company would not work with law firms employing Gensler’s former deputies, citing their alleged misconduct against the crypto industry. Under Gensler’s leadership, the SEC aggressively pursued regulatory enforcement against crypto firms, a stance that many in the industry viewed as excessively harsh.
A Shifting Regulatory Landscape
Congress has recently held multiple hearings in which crypto advocates voiced frustrations over regulatory actions taken during the Biden administration. They argue that regulators pressured banks to sever ties with crypto firms, creating unnecessary hurdles for the industry.
The newly appointed Republican leadership at the SEC has taken a critical stance on the agency’s previous policies under Gensler. However, despite promises of reform, immediate change remains unlikely.
“It took us a long time to get into this mess,” SEC Commissioner Hester Peirce, who is heading a new crypto task force, remarked in a statement. “Please be patient.”
In a notable development, the SEC recently requested a federal court to pause ongoing litigation against Binance, the world’s largest cryptocurrency exchange, signaling a potential shift in enforcement priorities.
Legislative Prospects
Crypto-friendly lawmakers and industry leaders anticipate the passage of two critical pieces of legislation. The first would establish regulatory frameworks and reserve requirements for stablecoin issuers. Stablecoins, whose value is typically pegged to traditional currencies like the US dollar, have surged in popularity.
The second proposal seeks to delineate the rules governing crypto exchanges and determine which digital assets should be regulated as securities—similar to stocks—or as commodities, like gold and oil. Securities are generally subject to stricter oversight.
While previous efforts to pass such legislation have stalled, industry insiders expect stronger bipartisan support this time, largely due to substantial political contributions from crypto interests. Fairshake, a crypto super PAC that ranked among the biggest spenders in last year’s elections, has amassed a significant war chest for upcoming political battles. One of the industry’s most notable victories was unseating former Senator Sherrod Brown, a crypto critic who chaired the Senate Banking Committee.
“The Democrats have gotten the message,” said crypto investor Anthony Scaramucci, who briefly served as White House communications director under Trump. “They don’t want to be in the 2026 campaign having a crypto army against them.”
Internal Divisions and Market Volatility
Despite the industry’s united front on regulation, internal divisions persist. Ripple’s CEO sparked controversy by suggesting that a proposed US government reserve of cryptocurrencies should include multiple digital assets rather than solely Bitcoin, a position that contradicts the views of many Bitcoin advocates.
Meanwhile, a recent JPMorgan report warned that provisions in the stablecoin legislation concerning reserve requirements could pose significant challenges for Tether, the world’s largest stablecoin. Tether’s CEO, whose company recently moved its headquarters to crypto-friendly El Salvador, dismissed the report’s findings and labeled JPMorgan’s analysts as “salty” on social media.
The crypto industry has experienced dramatic fluctuations in influence and public perception. A few years ago, cryptocurrency firms dominated Super Bowl advertisements, and industry figureheads like Sam Bankman-Fried had direct access to top policymakers. However, Bankman-Fried’s downfall, coupled with fraud scandals and market collapses, led to a decline in the sector’s standing.
Now, with Trump’s return to power, the industry is experiencing a resurgence. But with complex regulatory debates and internal disagreements on the horizon, the road ahead remains uncertain.
