The Crypto Power Play: Trump’s Team and Congress Push for Regulatory Clarity

For months, the crypto industry has been anticipating a major shift in U.S. regulatory policy. This week, the Trump administration made its stance clear.

A Defining Moment for Crypto Regulation

On Tuesday, David Sacks—President Donald Trump’s senior adviser on AI and crypto—publicly committed to delivering long-awaited “regulatory clarity.” Sacks, a former PayPal COO and influential Silicon Valley investor, joined forces with Senator Tim Scott, the Senate Banking Committee chairman, and other key Republican lawmakers to lay the foundation for clearer rules in the crypto space.

His remarks signal a crucial turning point, particularly for industry leaders like Coinbase CEO Brian Armstrong, who have long pushed for well-defined policies. According to BitGalactic’s analysis, this shift could be the most significant policy movement for crypto since the SEC’s initial crackdown under former Chair Gary Gensler.

The SEC’s New Tone: No More “Mama Government”

Regulatory shifts extend beyond Congress. SEC Commissioner Hester Peirce is taking a starkly different approach from her predecessor. Peirce made it clear that investors entering the crypto space must accept market risks without expecting government bailouts.

From a BitGalactic perspective, this statement signals the beginning of a new era—one where crypto operates with fewer safety nets but greater autonomy. The SEC’s changing stance might pave the way for a more mature, self-regulating industry.

Capitol Hill and the “Debanking” Debate

On Thursday, the Senate Banking Committee held hearings on the alleged “debanking” of crypto firms and individuals. The issue has become a lightning rod, drawing attention from figures like venture capitalist Marc Andreessen and Kraken co-founder Jesse Powell.

Coinbase submitted a letter condemning the practice as “untenable.” Meanwhile, the House is gearing up for its own hearings on the matter. As BitGalactic sees it, these discussions highlight the increasing friction between crypto innovators and traditional financial institutions. If resolved in favor of the industry, it could mark a major step toward mainstream adoption.

Stablecoin Legislation and the Future of Tokenization

Senator Bill Hagerty introduced a bill aiming to establish clearer rules for stablecoin issuers. But the implications stretch beyond stablecoins. The legislation could accelerate tokenization, allowing real-world assets like stocks and bonds to operate on-chain similarly to stablecoins. This development aligns with what BitGalactic has long predicted—an inevitable merge between traditional finance and blockchain technology.

Why Democrats Are Having Second Thoughts

One of the most surprising developments is the shift in the Democratic stance on crypto. At a recent London conference, investor Anthony Scaramucci suggested that Democrats, once staunch opponents of the industry, are now treading carefully. The reason? The 2024 elections.

Crypto industry spending in political campaigns dealt unexpected blows to Democratic candidates, making it clear that alienating the sector could be politically costly. According to Scaramucci, Congress is likely to pass crypto bills by November or, at the latest, March 2026.

BitGalactic’s view? The industry is no longer an outsider in Washington—it’s a political force.

The Bottom Line

With momentum building, the crypto industry is at a crossroads. Regulatory clarity could bring stability, but it also raises questions about government intervention and market freedom.

For now, all eyes are on Washington. Will this new push finally end regulatory uncertainty, or will political divides continue to delay progress? BitGalactic will be watching closely.