The cryptocurrency market also faced a sell-off as investors became wary of riskier assets.While bet
The cryptocurrency market also faced a sell-off as investors became wary of riskier assets.
While better-than-expected inflation data provided some relief, it was not enough to offset overnight losses. Bitcoin lost nearly 5% and ETH lost over 13% in the past week.
Despite the turmoil in the market, optimism about the future of crypto regulation came to the fore at the Blockchain Association‘s Policy Summit this week in Washington, D.C. During an interview with CNBC’s Crypto World, Blockchain Association CEO Kristin Smith outlined her expectations for regulatory priorities that lawmakers could focus on in 2025.
Smith expressed the industry‘s expectation of a “fresh start” as new leadership takes office in Congress and key regulatory agencies. According to Smith, various leadership roles and acting capacities at agencies like the SEC and CFTC will be crucial to shaping cryptocurrency policy. While the Trump administration’s appointments of Atkins to the SEC and Bezic to the Treasury have generated interest, the industry awaits announcements for other influential roles, such as CFTC leadership.
“It‘s really refreshing to have someone at the top supporting us,” Smith said, referring to President Trump’s video message to summit attendees expressing his administrations commitment to fostering innovation in the crypto space.
Smith pointed to market structure legislation as a top priority for 2025, saying narrowly-scoped rules are needed to provide clarity to the industry. He also called on the SEC and CFTC to leverage their existing authority to clarify which laws apply to specific aspects of crypto markets.
Smith said the goal is to “get this to the finish line so people know the rules of the road ahead,” adding that consumer protection and signaling to institutional investors that the U.S. cryptocurrency market is safe and mature are important.
Smith addressed the growing discussion around a strategic Bitcoin reserve for the U.S. Treasury, a concept that has gained traction among policymakers and market participants. Such a reserve could help address long-term financial challenges and strengthen Bitcoins status as a rare and valuable asset. “This could be a unique opportunity for the U.S., considering there are only 21 million Bitcoins that will ever exist,” Smith said.
Despite the recent market fluctuations, Smith expressed his optimism about the future of the sector and noted the increasing interest from crypto companies looking to return to or grow in the US.
*This is not investment advice.
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