Three drivers that will determine the future of cryptocurrencies in the United States

Five years ago, when we formed the Blockchain Association, it was an open question whether the digital asset industry could effectively use industry associations to argue its priorities before Congress and other federal regulators.
Some of the most persistent questions in Washington, D.C. at the time were whether cryptocurrencies would still exist in a few years, rather than raising complex questions about market structure, taxation of non-fungible tokens (NFTs) or whether code was protected by the U.S. Constitution. While these issues remain controversial, it’s clear that cryptocurrencies’ staying power is not.
On the fifth anniversary of the Blockchain Association, it’s worth pausing to reflect on the past five years and look ahead to the challenges in the coming years that may determine the industry’s success in debates in the U.S. Congress.
From President Donald Trump’s anti-Bitcoin tweets, to the market’s meteoric gains and shocking losses, to the debacle of Terra Blockchain and FTX — all under pressure from an increasingly hostile U.S. Securities and Exchange Commission. SEC, which appears committed to promoting the development of cryptocurrencies in the United States. Offshore Economy – The digital asset industry has experienced significant moments of disruption over the past few years.
However, even amid these dramatic moments, cryptocurrency adoption continues to grow. Multiple presidential campaigns have felt the need to make statements in support of the domestic digital asset industry. While the final report was less than friendly to cryptocurrencies, it’s worth noting that the Biden administration deemed the digital asset ecosystem important enough to issue an executive order directing the federal government to focus on the technology and recommend responsible regulation.
So, what will happen to cryptocurrencies in Washington over the next five years? Given the ups and downs of the film industry over the past five years, it seems foolish to make any reasonable predictions, but there are several areas where Congress, the White House and federal regulators are likely to focus.
Money laundering pain points
The first, and perhaps the biggest long-term issue, relates to anti-money laundering (AML) efforts. While federal law enforcement agencies are already very good at tracking illegal transactions on blockchain networks, high-profile cases such as the ongoing action against the developers of Tornado Cash illustrate the importance of this issue across the government.
While a number of technology-driven solutions have recently been proposed to ameliorate law enforcement concerns while maintaining the pro-privacy protections of services like Tornado Cash, anti-money laundering concerns are likely to continue to be a pain point in the federal government's efforts to generally embrace the wider use of cryptocurrencies. .
Bills targeting cryptocurrencies, pro-crypto politicians
The second question is the most likely path for the House and Senate to pass the legislation and become law. While cryptocurrency advocates are right to celebrate the milestone of multiple cryptocurrency-focused bills being voted out of their respective House committees last summer, the pressing question of the fate of these bills in the House and Senate must now be considered.
As the saying goes: people are policy, and it’s important to work to encourage pro-crypto thinkers into government service.
Is there enough common ground between the current elected officials in these chambers to agree on new cryptocurrency regulation? Time will tell when we see this package of bills move to a full House vote (and possibly beyond), but this is a reminder that supporting pro-crypto candidates running for office is the best long-term strategy, and we must change the way Congress looks at it views on this technology.
We have made great strides in developing cryptocurrency advocates over the past few years, and we have a better understanding than ever of how Congress as a whole views cryptocurrencies, but there is still much work to be done.
Regulatory changes
Finally, with a major election coming up, we'll address the known and unknown issues of federal regulators. Depending on the outcome of the 2024 presidential election, relevant regulatory agencies may undergo dramatic changes, introducing new faces who may have more enlightened views on the development, use, and proliferation of digital assets.
Even if the White House doesn't change hands, recent legal losses at some of these agencies, most notably the SEC, could turn the tide and convince those crypto opponents that a different approach is needed when trying to curb the domestic industry.
Continued court defeats may force staff from these agencies to leave as they become frustrated with losing teams time and time again. Either way, as the saying goes: people are policy, and it’s important to encourage pro-crypto thinkers into government service wherever possible.
next 5 years
It hasn’t always been smooth sailing for the digital asset ecosystem over the past five years, but it has inspired strong industry voices in Washington, DC. At the Blockchain Association, we are proud to be the voice of the industry with an unwavering mission: to advance the future of crypto in America.
Over the next five years and many more to come, we will continue to advocate for crypto in Washington on behalf of our members and the industry.