2024 U.S. Election: Web3 Regulatory Impact for Finance Professionals
This session delves into the latest regulatory impacts on Web3 following the 2024 U.S. election. Led by Andrea Perlak, CEO of Crypto Accounting Group, it covers essential topics, from expected SEC policy shifts to compliance challenges and the role of a pro-crypto Congress. Crypto finance professionals will gain valuable insights into how these regulatory changes could shape the future of digital assets and crypto business in the U.S.
- Election Impact: Overview of the new administration’s anticipated regulatory stance on crypto.
- SEC Leadership Changes: Insights into potential shifts in SEC leadership and enforcement actions.
- Pro-Crypto Congress: How a supportive Congress could introduce more favorable policies for Web3.
- Compliance Outlook: Short- and mid-term compliance implications for crypto businesses in the U.S.
Meet Our Speakers
Watch and learn from an international group of industry leaders at the forefront of Crypto Accounting
Andrea Perlak
Founder and CEO
Crypto Accounting Group
Take a Sneak Peek at the Talk
Liquid Staking for Accurate DeFi Accounting
From the complexities of liquid staking to the best strategies for syncing cryptocurrency to the main ledger. Learn about reporting strategies for liquidity pool tokens and how to navigate the ever-changing landscape of crypto accounting.
WATCH NOWRead these highlights from the talk
What is your overall perspective on the U.S. election results?
Andrea Perlak: This election has been significant for the crypto industry. With a pro-crypto administration taking office, it could mean relief from the regulatory pressures that crypto companies have faced over the past few years. The immediate reactions have been overwhelmingly positive, with the industry hopeful that we’ll see a friendlier environment for Web3.
How pro-crypto is Trump, really?
Andrea Perlak: That’s a great question. Trump initially seemed distant from crypto, but his campaign showed increasing support, likely due to recognizing the influence of the pro-crypto voting demographic. Trump’s inner circle includes several crypto advocates, which is promising. The presence of crypto supporters, like Alex Brusewitz, as part of his transition team is a positive indicator that the administration will support the industry.
What if Kamala Harris had won? How would that have affected crypto?
Andrea Perlak: If Kamala Harris had won, it’s likely we’d be facing another year or two of restrictive policies. Her campaign didn’t focus much on crypto, and it’s expected that she would have continued Biden’s approach, keeping figures like Gary Gensler at the SEC. That would likely mean ongoing regulatory challenges for crypto companies. So, this election outcome was critical for the industry’s future.
What short-term changes could we expect following this election?
Andrea Perlak: The first change we’re expecting is a shift in SEC leadership, likely with someone who brings a more balanced approach to enforcement. The new administration may pause the “enforcement through action” method that has been costly for crypto companies. We’re also hoping to see a more defined set of compliance guidelines in the short term.
Bitcoin’s price has surged about 20% since the election, which reflects the market’s positive outlook. In the next few months, we could see an easing of enforcement and, potentially, new compliance standards that are clearer and more consistent.
Is there a chance the U.S. Treasury could begin holding Bitcoin?
Andrea Perlak: That’s an interesting topic and one that’s been discussed widely. Currently, the U.S. Treasury holds around 206,000 BTC. Trump has indicated that his administration might hold rather than sell this BTC. While this isn’t guaranteed, such a move would signify a substantial endorsement of crypto as an asset.
What compliance challenges might arise with these shifts?
Andrea Perlak: The industry still faces challenges. While we’re optimistic about changes, it’s likely that some compliance hurdles will remain. For example, transitioning from an enforcement-focused approach to more structured guidelines will take time. Finance professionals should expect a period of adjustment as new regulations are drafted and refined.
How could a pro-crypto Congress support Web3?
Andrea Perlak: A pro-crypto Congress could accelerate regulatory clarity, particularly around the classification of securities versus commodities. This clarity would be a game-changer, as it would define the boundaries for crypto companies. A supportive Congress might also prioritize stablecoin regulations, crucial for bridging traditional finance and crypto. This type of legislative support could significantly impact the growth potential for Web3 in the U.S.
Are there other long-term regulatory expectations?
Andrea Perlak: Yes. While immediate changes are promising, permanent regulations will likely take one to four years to fully implement. In the long run, we expect to see clearer definitions around digital assets, protections for consumers, and standards that support innovation in Web3. Key laws on stablecoins and asset classification will be crucial steps toward sustainable growth.
Could the U.S. become a global leader in crypto under the Trump administration?
Andrea Perlak: Absolutely, there’s potential. If this administration maintains a supportive stance, it could attract more companies and innovators back to the U.S., which would set the country up as a global leader in Web3. The crypto community is hopeful that the U.S. might finally take on this role.
Stay informed about the rapidly changing regulatory environment in crypto. Sign up to access the full conversation and get insights on what this means for finance professionals navigating Web3!
Talk to an Expert
Streamline crypto accounting to move your business faster