A savvier crypto industry is ready to play its Trump card. Cryptocurrency has been declared dead nearly countless times — or 477, to be exact. So what exactly accounts for the industry’s repeated miraculous rebirth? A whole lot of lobbying and a revamped messaging strategy, it turns out, according to the Atlantic and the Financial Times.

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Let’s start with a brief refresher: The spectacular collapse of crypto exchange FTX in 2022 and multiple US Securities and Exchange Commission lawsuits against blockchain firms in the past few years were heralded by many observers as the final nail in crypto’s coffin. But the industry’s recent USD 130 mn foray into US congressional campaigning and lobbying has lately borne significant fruit. In May, the House passed crypto-friendly policies, and the Senate rolled back some SEC consumer protections — with both Trump and Harris courting crypto’s support during this year’s presidential campaign.

They’re still battling for regulatory classification: Crypto’s lobbying efforts aim to reclassifytokens as commodities rather than securities, which would move them from SEC oversight to the CFTC. This shift could lead to looser regulations and fewer protections, as the CFTC is generally seen as more favorable to crypto and less equipped to enforce strict consumer protections.

More deets: Consumer advocates argue that placing crypto outside the SEC’s reach will weaken investor protections by eliminating disclosure requirements that inform investors of risks. On the other hand, crypto firms are positioning stablecoins and blockchain utility tokens to reassure the public of the industry’s stability and utility — with Trump launching his family-run, peer-to-peer lending platform World Liberty Financial just last month.

How did crypto influence 2024 campaigning? Trump embraced crypto during his bid, calling himself the “ crypto president ” and vowing to make the US “ the crypto capital of the planet.” Binance’s CEO even hailed Trump’s campaign as the start of a “ golden era ” for the industry. Harris’ comments were more reserved, but indicated openness to digital assets, especially around financial inclusion and freedom.

What’s next? With a shifting US regulatory and political landscape crypto could possibly gain the legitimacy it has long sought — promising either a wave of financial innovation or a new era of unchecked risks.

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