The Blockchain Association, a nonprofit organization representing crypto and blockchain companies in the US, sent a letter to President-elect Donald Trump and Congress on Friday. In the letter signed by Blockchain Association CEO Kristin Smith, the organization outlined five priorities for the first 100 days of Trump’s administration.
While the entire crypto industry has called for a replacement for Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), Smith believes this is not enough. An overhaul of leadership at the Internal Revenue Service (IRS) and the Treasury Department is also required, Smith said.
The SEC is an independent agency and since President Trump will not have the authority to fire Gensler – something he promised to do on his first day back in the White House during his campaign. Earlier this week, however, Gensler announced he will step down from his role to make way for Trump’s replacement on January 20, 2025, the same day Trump will retake the White House.
According to the letter, taxation of digital assets is inconsistent and the IRS’s recently introduced ‘Broker Rule’ could drive companies abroad. In July 2024, the IRS mandated that all brokerages must disclose gross proceeds, as well as profits and losses, from the sale of crypto, stablecoins, and non-fungible tokens (NFTs).
The letter also stated that the Treasury Department should welcome software developers and prioritize the privacy of U.S. citizens.
Smith also called on Trump to roll back the SAB 121 accounting directive, which requires publicly traded companies to count crypto assets on their balance sheets. In the letter, Smith called the directive “punitive” and “anti-crypto.”
The letter mentioned the establishment of a ‘fit for purpose’ regulatory framework for cryptocurrencies as one of the proposed priorities. Regulations must strike a balance between protecting customers and encouraging innovation, the letter said.
Smith further wrote that crypto companies have long been denied access to traditional banking and called for an end to the practice. The letter noted:
“Crypto companies and users have been unfairly denied access to traditional bank rails that are crucial for paying employees, suppliers and taxes. This practice must end immediately.”
Finally, the letter suggested that Trump should establish a crypto advisory board to work with Congress and regulatory watchdogs. The Blockchain Association believes that public and private partnerships are key to establishing “smart rules that work.”