Will the Crypto Industry Need to Self-Regulate Under Trump?

As discussions around cryptocurrency regulation intensify, speculation about potential policy shifts in the United States has resurfaced. One recurring question is whether the crypto industry will face heightened self-regulation if former President Donald Trump returns to power.

Trump’s Crypto Stance: A Look Back

During his presidency, Donald Trump maintained a critical stance on cryptocurrencies. He described Bitcoin as "highly volatile" and argued it was "based on thin air." Trump’s administration emphasized traditional monetary systems, while financial regulators like the SEC (under Jay Clayton) focused on enforcing existing securities laws against crypto projects rather than introducing a comprehensive regulatory framework.

Despite these critiques, his administration avoided creating new, restrictive legislation for the crypto sector. This hands-off approach left the industry in a regulatory gray area, requiring companies to either adapt to outdated financial rules or adopt self-regulation practices.

The Current Landscape: A Patchwork of Rules

Under President Joe Biden, the crypto industry has faced increasing scrutiny. The SEC, led by Gary Gensler, has launched enforcement actions against major players and pushed for stricter oversight. These developments have frustrated many in the crypto space, leading some to long for the relatively lenient stance during Trump’s presidency.

However, the lack of clear federal guidelines during Trump’s tenure also prompted self-regulatory initiatives. Groups like the Crypto Rating Council emerged, providing voluntary compliance frameworks to address issues such as security classification and consumer protection.

Self-Regulation: The Path Forward?

If Trump were to regain office, the crypto industry might again find itself in a regulatory vacuum, with little federal guidance on emerging technologies. While this might mean fewer government-imposed restrictions, it could increase the pressure on the industry to self-regulate responsibly.

Self-regulation would require unified efforts from crypto companies, including:

• Establishing standards for transparency and disclosures to build investor trust.
• Implementing anti-money laundering (AML) and know-your-customer (KYC) protocols to prevent illicit activities.
• Cooperating with international regulatory bodies to create global consistency in crypto laws.

Potential Challenges

While self-regulation could foster innovation, it also poses significant challenges. Industry players may struggle to agree on standards, and without government enforcement, bad actors could undermine trust in the ecosystem. Additionally, Trump’s personal skepticism of crypto might lead to new executive orders or public statements that could disrupt market confidence.

What’s at Stake?

The stakes for the crypto industry have never been higher. With institutional adoption growing and blockchain technology reshaping global finance, the need for clear rules has become urgent. If Trump’s potential leadership leans toward deregulation, the industry must be prepared to demonstrate its ability to regulate itself effectively or risk losing public trust and international competitiveness.

In conclusion, the question of whether the crypto industry will need to self-regulate under a Trump presidency depends on his administration's policy priorities. Regardless of political leadership, the industry’s proactive measures could determine its long-term success and legitimacy.