As President Donald Trump prepares to retake the Oval Office for his second term, a group of over 20 leading cryptocurrency attorneys has presented him with an ambitious proposal: Embrace digital assets and make the United States the global capital of crypto innovation. In an open letter shared exclusively with CoinDesk, the lawyers outline a comprehensive set of regulatory reforms that could redefine America’s approach to the burgeoning industry.
Seizing the Crypto Moment
The authors, who represent a who’s who of crypto law expertise, argue that the U.S. is uniquely positioned to lead the world in crypto development due to its bedrock values of personal liberty – the same core principles that animate decentralized digital currencies. However, they contend that unclear and often hostile regulations have squandered this natural advantage.
U.S. regulators have until now refused to adapt existing laws to digital assets and the blockchains that underpin them (or even to explain why not), and created an unfavorable business environment that has driven many entrepreneurs and developers abroad.
Open Letter to President Trump
To reverse this trend, the letter lays out a three-pronged strategy: providing clear rules for crypto businesses, aligning regulations with core crypto values like privacy and decentralization, and cultivating a welcoming environment for crypto talent. If enacted, the lawyers contend, these policies would “unleash American ingenuity” and cement U.S. crypto leadership.
Regulatory Roadmap
The proposed reforms span the gamut of crypto legal issues, from token issuance to DeFi governance. On the crucial question of when digital assets qualify as securities, the attorneys urge Congress to narrowly tailor regulations and avoid the SEC’s “overbroad” approach of treating most tokens as investment contracts.
- Tokens powered by decentralized, open-source software should not be deemed securities
- NFTs and non-investment crypto activities like staking fall outside securities laws
The letter also calls for bespoke legislation governing stablecoins and urges policies to harmonize the integration of crypto and traditional finance. Notably, it suggests promoting the tokenization of real-world assets – a move that could “strengthen U.S. capital markets.”
Crypto-Forward Principles
Beyond specific reforms, the authors advocate for a philosophically consistent approach guided by two key tenets: Crypto should not face heavier burdens than comparable traditional assets, and unique crypto innovations demand new regulatory paradigms.
Applying these ideas, they argue that self-hosted crypto wallets should receive the same treatment as physical cash storage, with no special registration or reporting requirements. Where novel crypto activities defy easy categorization, regulators should engage collaboratively with the industry rather than forcing square pegs into round holes.
Regrettably, this is the path that many U.S. regulators have chosen… Without diminishing the importance of the governmental interests at play (tax evasion, money laundering, and national security), we submit that the government’s approaches in each case are wrong as a matter of innovation policy.
Open Letter to President Trump
Attracting Top Talent
Finally, the letter outlines steps to make the U.S. a magnet for crypto talent, starting with ending the “unaccountable campaign” to cut off banking services for crypto firms. It also urges the SEC to halt its “pernicious approach” of aggressively pursuing industry participants.
Other recommendations include common-sense tax reforms, such as a de minimis exemption for small crypto transactions and simplified rules for calculating digital asset taxes. Taken together, the attorneys contend these changes would stem the exodus of crypto innovation while providing certainty for well-meaning developers and users.
The Path Forward
The open letter comes at a pivotal juncture for the U.S. crypto industry. The past four years saw an escalating regulatory crackdown that sowed confusion and fear among many market participants. With a new administration taking the reins, crypto advocates spy an opportunity to reset the conversation.
Whether the White House will heed their advice remains to be seen. However, the detailed policy roadmap put forth by this brain trust of crypto legal experts offers a tantalizing glimpse of how the world’s largest economy could reposition itself at the vanguard of the digital asset revolution. The ball is now in President Trump’s court.
