Policy Backgrounders

Cryptocurrencies: Moving Towards Regulation?

January 08, 2025

Cryptocurrencies have enjoyed a broad surge in prices since the election, in anticipation of a more crypto-friendly Administration since the President-Elect’s remarks during the campaign at the Bitcoin 2024 Conference pledging to make the US the “crypto capital of the planet and the bitcoin superpower of the world.” This marks a significant change from his generally skeptical attitude earlier, at one point calling Bitcoin “a scam against the dollar” and “based on thin air.”

• While many US financial services firms have been active in developing cryptocurrency-related products, the US does not have a comprehensive framework for regulating these products.
• Other jurisdictions, including the European Union, the United Kingdom, and Japan have been more active in developing a regulatory framework in whole or in part.
• The new Trump Administration seems poised to take a strongly pro-crypto position, including through changes in key regulatory personnel.
• While Congressional action seems unlikely given the difficulties of developing bipartisan bill text, it is likely that regulatory agencies will act to promote in the new Administration.