A Presidential Boost for Crypto: A Day One Executive Order

Dear President Elect Trump, As the co-head of a prominent law firm's digital assets practice, I am optimistic that your nominee for SEC chair will implement much-needed reforms in crypto market regulation. However, given the time required for confirmation and the formulation of new guidance, I propose an Executive Order to restore American leadership in the crypto financial system on your first day in office. While other countries have established regulatory clarity for crypto innovation, the U.S. has been hindered by outdated rules, leaving market participants uncertain. The SEC has pursued numerous cases against crypto companies based on allegations of violating these outdated requirements, even in the absence of fraud or harm to investors. This approach has driven many innovators and businesses offshore, jeopardizing America's global economic leadership. To reclaim this position, I suggest an Executive Order directing federal agencies to: 1. Halt investigations and enforcement actions against crypto companies unless they involve credible allegations of fraud, misconduct, or national security threats. 2. Provide a written report to the President's office within 180 days justifying the continuation of such proceedings. 3. Terminate investigations and enforcement actions that do not warrant continued prosecution. This proposed order would counter the chilling effect on the digital assets industry caused by recent government enforcement litigation, including actions against good actors who have not caused harm to investors. The SEC has extracted billions of dollars in disgorgement in victimless crypto enforcement lawsuits, imposing draconian sanctions on legitimate market participants. It is time to reassess this approach. With the authority granted by Article II of the Constitution, you can issue such an Executive Order without legislation or regulatory rulemaking, compelling all federal agencies, including the SEC, to comply. By taking this step on your first day in office, you can set America on the path to becoming the global crypto economy's hub.