The year 2023 brought significant challenges to the crypto industry, with Flagstar Bank’s decision to not assume accounts for companies like Fluence, leading to a wave of de-banking under Chokepoint 2.0. This was part of the Biden administration’s crackdown on crypto, with harsh actions by the Securities and Exchange Commission (SEC) forcing some founders to shut down projects they had already left.
In response to these unfair actions, the crypto industry PAC Fairshake raised over $200 million to support pro-crypto legislators. The tide began to turn with the election of a new administration led by President Donald Trump, who recognized the potential of the crypto sector and appointed David Sacks as Crypto Czar.
Ripple CEO Brad Garlinghouse highlighted the SEC’s approach to crypto as a key factor in the formation of Fairshake, a super-PAC aimed at advocating for the industry. The Trump administration signaled a more crypto-friendly stance, with plans for a strategic Bitcoin reserve and potential elimination of capital gains taxes on US-based projects. This shift in policy aims to attract talent and projects back to the US, fostering innovation and growth in the sector.
With a focus on cost-consciousness, the administration is also exploring decentralized offerings like decentralized cloud services, which could result in significant cost savings compared to current cloud providers. The US is poised to lead the way in blockchain and crypto innovation, supported by regulatory clarity and a welcoming environment for entrepreneurs.
As the industry looks towards the future with optimism, the hope is that with the support of the Trump administration, hard-working individuals can focus on building without fear of government interference. This shift represents not just a business opportunity, but a personal stake for those involved in the crypto space.
Overall, the landscape for crypto in the US is evolving, with the potential for greater growth and innovation under the leadership of a more supportive administration. The industry is poised for significant advancements, and the regulatory environment is becoming more conducive to fostering innovation and development.