The cryptocurrency industry has spent the Biden era in a losing battle with Washington. If Republicans take power in 2024, it can still win the war.

Donald Trump derided crypto during his presidency, but if he returns to the White House he is expected to usher in policy and personnel that would be more aligned with digital asset firms. GOP lawmakers and conservative groups have drafted regulatory proposals in line with the industry’s wish list, and Republicans are already floating the names of potential regulators who would play a key role in turning the tide.

It would mark a major shift from President Joe Biden, whose administration and regulators are consistently taking a skeptical approach to crypto over what they see as risks to consumers and the broader financial system. Leading Democrats in Congress, including Senate Banking Chair Sherrod Brown of Ohio and Sen. Elizabeth Warren of Massachusetts, are likewise ramping up scrutiny. The crypto lobby in response is fighting back hard against policies designed to rein in the industry, including in court.

“If the second Trump administration takes place, [the] president will be a lot more friendly to the crypto industry,” said House Majority Whip Tom Emmer (R-Minn.), who endorsed Trump this month and is one of Capitol Hill’s leading crypto proponents.

The potential swing in Washington’s crypto posture illustrates how policy concerns around bitcoin and other digital assets have taken on an increasingly partisan tinge in the last few years as the $1.7 trillion market experienced a dramatic boom and bust. It means 2024 is likely the most consequential U.S. election in the industry’s history — one that will determine the extent to which the federal government grants it legitimacy and a rulebook that will support its growth.

While crypto advocates see an opening, critics are warning of the possible consequences.

“The only reasonable expectation is that Trump will bring his overall financial deregulation mindset to the crypto arena,” said Dennis Kelleher, president and CEO of the financial........

© Politico