On March 28th, 2023, Flagstar Bank, the acquirer of Signature Bank, informed my company that they would not be assuming our bank account. They also closed accounts unrelated to crypto that I had set up for my family.
Fluence was just one of many de-banked in 2023 as part of Chokepoint 2.0, one prong of the Biden administration’s war on crypto.
The End of Unfair Actions against Crypto
Other founders suffered far more, with the Securities and Exchange Commission (SEC) actions towards them unless they shut down projects they had already left. The more public actions of the previous Joe Biden administration, such as targeting the most compliant companies, like Coinbase, made clear the use of the SEC against the crypto industry and the regulation by enforcement, which SEC Commissioner Hester Pierce stood up against.
In response to these harsh actions, the crypto industry PAC Fairshake raised over $200 million to help elect pro-crypto legislators. After being unsure about the industry in his first administration, President Donald Trump recognized the scale and potential of this sector and advocated for it in his campaign. He appointed David Sacks as Crypto Czar, a newly created position.
Ripple CEO Brad Garlinghouse says the SEC’s approach to crypto was the main reason his company and two others created the biggest industry super-PAC, called Fairshake. https://t.co/mEN4CWeXMW pic.twitter.com/bmmf5lgoFK
— 60 Minutes (@60Minutes) December 6, 2024
It is hard to underestimate the change for an industry that has been attacked relentlessly by the world’s strongest regulators and forced offshore.
Under the previous administration, Grayscale had to take the nearly unprecedented step of suing their regulator and the SEC to force approval of the Bitcoin ETF.
A Crypto Friendly US Administration Takes Over
Meanwhile, the Trump administration is likely to announce a strategic Bitcoin reserve. President Trump’s administration will also likely to propose eliminating capital gains taxes on US-based projects, reversing the flow of talent and projects forced offshore, and telling banks to avoid the US at all costs and allow them to custody crypto.
Additionally, this innovation-friendly administration is highly cost-conscious, which should drive interest in a number of decentralized offerings, such as decentralized cloud services, which can save up to 75% of the $8 billion that the government currently spends with cloud oligopolists Amazon, Google, and Microsoft.
Blockchain and crypto are here to stay, and the steps this administration is taking will ensure that the US leads this important sector.
Over the past years, projects have continued to build and, with the support of President Trump’s Administration, are poised to make great strides in adoption. We are excited to learn more about regulatory plans, and many have come to DC to witness the largest ethos shift in our lifetimes. We can’t wait for hard-working entrepreneurs to be able to focus on building without having to worry about the government arbitrarily suing them or shutting off their access to funds.
This isn’t just business; for crypto, it is personal.
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