Analysis: Regardless of who is elected US president, digital assets will get more regulatory clarity in 2025

Blockchain company Blockdaemon recently published an article stating that with less than two weeks to go before the US presidential election, they hope to reflect on recent US regulatory developments on digital assets and how they can "become an indicator for the coming year." Whether Harris or Trump is elected president, they are optimistic that 2025 will provide "more regulatory clarity for digital assets." ‍The article states that reaching a congressional consensus on "digital asset regulatory approaches" has been a challenge. Some members of Congress are supporters of the regulatory framework, while others believe that "it is not necessary." Any congressional action requires bipartisan approval, and no party "has enough votes to pass legislation alone." ‍In May 2024, the Senate and the House of Representatives unexpectedly took "bipartisan action to repeal" the US SEC's crypto accounting policy SAB 121. SAB 121 requires financial institutions to "classify digital assets as liabilities on the balance sheet, with complex disclosures and corresponding asset holdings." This actually makes it impractical for financial institutions to custody digital assets. The article believes that the repeal of SAB 121 marks a necessary and desirable change. Unfortunately, the President of the United States vetoed the repeal, and SAB 121 remains in effect. Nonetheless, this action by Congress is a promising step in the right direction. Blockdaemon also states that FIT21 is now in the Senate. The Senate has not yet acted on it, but this “does not indicate a lack of interest.” The Senate may defer its review until “after the presidential election and a new administration.” In stark contrast to the 2020 presidential election, digital assets have become a top issue for candidates this year. SAB 121 and FIT21 reflect growing interest in Congress. The article also states that it is widely “expected that other financial institutions will seek and receive similar exemptions, effectively repealing SAB 121,” adding further “evidence that the regulatory environment has changed” and that next year will be “the year we finally see a regulatory framework for digital assets.” The Senate will likely “pass a version of FIT21, and with strong bipartisan support, the President will approve it.” This, Blockdaemon concludes, will put the United States in a leading position to “lead the next wave of innovation while adequately balancing consumer risks.” (Crowdfund Insider)