The 2024 election cycle has profoundly disrupted the political landscape for digital finance. With over $100 million spent by the crypto industry across all races and Trump’s victory giving way to promises of a pro-crypto administration, the regulatory outlook has shifted in ways that might surprise some. Amid the headlines and post-election market euphoria (Bitcoin surpassed $90,000), we in the crypto industry must refocus. The path forward cannot be a matter of partisan politics. The discourse must center on how our industry adapts to its new role in Washington.
Two months ago, I found myself before the House Financial Services subcommittee on digital assets. That hearing now feels like a snapshot from another era—before an election cycle that saw crypto emerge as a true campaign issue, with promises of establishing a national Bitcoin stockpile and reshaping regulation. What began as a technical discussion about DeFi fundamentals morphed into a debate over America’s role in the future of finance.
Guiding Principles for DeFi Oversight
While the elections have brought changes to key committees, notably Financial Services, the core tenets of responsible DeFi oversight should not shift with political winds. Innovation, consumer protection, and financial inclusion are neither Republican nor Democratic values, but American ones. The election results, particularly in races where crypto played a decisive role, like Bernie Moreno’s victory over Sherrod Brown in Ohio, prove that voters across the spectrum are motivated by these issues.
To me, “representing DeFi” once meant advising small startups in Brooklyn apartments. Back then, decentralized finance was largely an emergent movement within the broader crypto industry, highlighting how decentralized software can disrupt many of our daily financial activities. Many who were building then could not have imagined this would become a central campaign issue, with candidates actively courting industry support and debating the future of digital assets.
Transcending Political Divides
The election results amplified what we began to see in the September hearing: crypto’s ability to transcend traditional political divides. When Rep. Wiley Nickel (D-NC) opened that session by stating, “DeFi […] can make our financial system more accessible, transparent, efficient, and innovative,” seeking “common ground to support both innovation and consumer protection,” he foreshadowed themes that would reshape campaign narratives nationwide and serve as a guide for how crypto should emerge as a rare point of bipartisan cooperation in a polarized political climate.
Three Key Initiatives
We can reach this common ground through three key initiatives, via mutual efforts from industry and policymakers:
- Education: With new faces in Congress and evolving committee assignments, the basic educational mandate from the September DeFi hearing becomes even more crucial. This election cycle showed that when policymakers understand our technology, they are more likely to support it, as evidenced by the victory margins of pro-crypto candidates who took the time to learn the fundamentals.
- Building Useful Applications: During the hearing, representatives asked about financial and non-financial use cases. It was a privilege to answer questions and discuss The Value Prop, an open database listing the use cases of blockchain-based applications across crypto networks like Ethereum, Bitcoin, and more. I’ll say the quiet part out loud: speculation is fun for many. But if the industry only chases the pump, it will never demonstrate DeFi’s transformative value.
- Keeping DeFi Secure: Bad actors are everywhere, in DeFi as in TradFi. It was hard not to notice some representatives leaning into this issue at the September hearing. But one of DeFi’s inherent features—transparent, real-time transaction data—is also its greatest asset in creating a safer system than the traditional financial world.
The Path Forward
The future of DeFi regulation requires nuanced understanding and deep collaboration. Well-informed industry leaders and regulators, better use cases, and system security are essential to realizing the long-term benefits of this technology. The U.S. has an opportunity to lead the way, but only if we approach DeFi with the nuance and forward thinking it deserves.
As I testified in September, decentralization of legacy systems piqued my interest years ago in a Williamsburg loft with a four-person DeFi startup that built one of the world’s most eminent protocols. I remain optimistic about what we’re building—as Rep. Nickel put it—a system “for everyone.” The 2024 elections have reshaped the playing field, but the game remains the same: demonstrating crypto’s value, keeping consumers safe, and ensuring America’s role in the financial future. The industry’s post-election playbook must reflect these unchanging principles.
The future of DeFi regulation requires nuanced understanding and deep collaboration. Well-informed industry leaders and regulators, better use cases, and system security are essential to realizing the long-term benefits of this technology. The U.S. has an opportunity to lead the way, but only if we approach DeFi with the nuance and forward thinking it deserves.
As I testified in September, decentralization of legacy systems piqued my interest years ago in a Williamsburg loft with a four-person DeFi startup that built one of the world’s most eminent protocols. I remain optimistic about what we’re building—as Rep. Nickel put it—a system “for everyone.” The 2024 elections have reshaped the playing field, but the game remains the same: demonstrating crypto’s value, keeping consumers safe, and ensuring America’s role in the financial future. The industry’s post-election playbook must reflect these unchanging principles.
