Donald Trump’s recent return to the presidency brought with it a new tide of optimism through the whole crypto space. Crypto innovation languished under the previous administration as SEC Chairman Gary Gensler engaged in adversarial regulation. The regulatory environment grew too burdensome for too many in the space, crippling growth and allowing global competitors to catch up.
With President Trump back in the White House, crypto fans are expecting more business-friendly policy. A deregulation president who also supports entrepreneurial development, Trump’s presidency is being viewed as a better deal for the fast-changing landscape of virtual currencies.
The market reacted swiftly. Bitcoin surged 8% overnight to $75,000 and Solana was up nearly 25% to over $80. XRP also experienced a mini pop, up nearly 2% to $0.56. These are new investor hope-driven gains for a more crypto-friendly U.S. regulatory environment.
Model Law and the Push for Smarter Regulation
One of the leading minds behind making it a reality is Dr. Christopher Smithmyer, among the most well-regarded business and legal professionals in the industry. Dr. Smithmyer has written the Model Law on Digital Assets and Exchanges (MDAE) for the Dynamic Collation on Blockchain Assurances and Standardizations (DCBAS), which is an agency of the United Nations’ Internet Governance Forum.
MDAE allows for an effective regulatory framework of a states’ regulatory regime to come up with digital asset legislations that harmonize adequate safeguards with innovation. Crucial safeguards like Know Your Customer (KYC) requirements, Anti-Money Laundering (AML) laws, Counter-Terrorism Financing (CTF) rules, and anti-human trafficking laws are given precedence in the model law. The MDAE is instead suggested to be modeled in such a way as to have minimal regulatory overhang and regulatory cost.
Adopting this model would provide the Trump administration with a clear and internationally coordinated direction. Not only would its adoption provide clarity to the crypto community, but it would also attract foreign investment and achieve leadership in blockchain and digital finance technology.
A Vision for Global Leadership
The vision is also consistent with the administration’s broader goals of enhancing the economy, innovation, and restoring U.S. leadership in advanced technologies.
In brief, President Trump’s second term ensures a tipping point for U.S. crypto policy. By embracing direct, even-keeled, and innovation-friendly regulation—bolstered by expert advice like Dr. Smithmyer’s—the administration can grasp the historic opportunity to place America at the forefront of the global digital economy.
