David Sacks, recently appointed as the “AI and crypto czar,” has a limited two-year window to implement pro-crypto policies before the 2026 midterm elections, according to Joe Doll, general counsel for NFT marketplace Magic Eden. Doll emphasized that the slim Republican majority in the House of Representatives, where the GOP holds 219 seats, increases the urgency to act before potential political gridlock.
Doll pointed out that divided government often leads to stalled legislation. He noted that the House majority is precarious and historically tends to flip in midterm elections, creating a tight timeframe for meaningful regulatory progress.
Trump’s appointments of pro-crypto officials, including David Sacks, are being welcomed by the crypto community as signs of potential innovation-friendly policies under the new administration.
Current Landscape of Crypto Regulation
The nomination of David Sacks has sparked optimism within the crypto industry due to his longstanding support for cryptocurrencies and economic innovation. As an advocate for decentralization and emerging technologies, Sacks is seen as a key figure in advancing crypto regulation in the coming years.
In addition to Sacks, other recent nominations signal the administration’s pro-crypto stance. Paul Atkins, a vocal advocate for digital assets and co-chairman of the Digital Chamber’s Token Alliance since 2017, was named chairman of the Securities and Exchange Commission (SEC) on December 4, 2024.
Stephen Miran was also tapped as chairman of the Council of Economic Advisors on December 22. Miran’s support for deregulation and tech-friendly policies has further boosted confidence in the administration’s approach to the crypto space.
Legislative Priorities for the GOP
Congressman French Hill of Arkansas recently discussed the GOP’s commitment to advancing cryptocurrency regulation. He highlighted the introduction of a comprehensive digital asset market structure bill as a key priority for the party, with plans to address it within the first 100 days of the next legislative session.
The Republican majority leader, Steve Scalise, is reportedly championing this initiative, aiming to establish a regulatory framework that fosters innovation while ensuring clarity for businesses and investors in the cryptocurrency sector.
The crypto industry is watching closely as the administration and Congress work to balance regulatory oversight with the need for innovation. These efforts could define the future of digital assets in the United States.
