The collapse of FTX in 2022 was supposed to be crypto’s death knell. Instead, it proved to be its chrysalis moment. As Washington’s scrutiny intensified and public trust plummeted, the industry underwent a necessary metamorphosis. Bad actors were expelled, legitimate enterprises persevered, and a crucial lesson soon emerged: blockchain technology had become too significant for politicians to ignore.
In many ways, crypto has already won, and the signs are clear.
This year saw the emergence of the first pro-crypto, bipartisan bloc in Congress. The Financial Innovation in Technology for the 21st Century Act (FIT21), passed with support from both parties, is a step in the right direction for much-needed regulatory clarity, long sought by the industry. Even Maxine Waters, the ranking Democrat on the House Financial Services Committee, has signaled support for stablecoin legislation—a remarkable shift from the sharp skepticism that dominated these discussions just two years ago.
Presidential candidates, typically cautious about emerging technologies, are now competing for the mantle of crypto champion. Former President Donald Trump promises to make “America the world capital for crypto,” while Vice President Harris emphasizes maintaining American leadership in digital asset innovation. The race to embrace blockchain technology represents more than political opportunism; it reflects a recognition that digital assets have become a permanent fixture of America’s financial landscape.
This transformation extends beyond Washington.
More than 50 million Americans now own or invest in cryptocurrency, creating the outlines of a voting bloc too substantial to dismiss. Digital assets have evolved from a fringe concern to a litmus test for political candidates. The math is simple: there’s no longer any political upside in being anti-crypto.
Yet the industry’s trajectory hasn’t been entirely smooth. Under SEC Chair Gary Gensler, the Commission’s regulation-by-enforcement approach has extracted a heavy toll, with estimated industry legal fees exceeding $400 million—capital that could have funded innovation rather than litigation. But even this regulatory headwind has failed to stall the industry’s momentum.
Read more: The One Senate Race That Could Give Elizabeth Warren More Power Over Crypto
The shift in crypto’s political fortunes isn’t merely about polling numbers or campaign promises. It represents a deeper recognition that blockchain technology has matured beyond its speculative origins. The industry has survived its trial by fire, emerging with stronger governance, engaged advocates, and—crucially—a more sophisticated approach to political engagement on rival more established sectors.
Looking ahead to 2025, market structure legislation will likely dominate the new Congress’s agenda. But the larger battle—for legitimacy in the political arena—has already been won. Digital assets have secured their place in America’s financial future, regardless of which party controls Congress or occupies the White House.
Four years ago, “crypto” and “digital assets” were barely part of the political lexicon. Today, they’re essential elements of any serious discussion about America’s financial future. This transformation isn’t just about the technology’s adoption; it’s about its integration into the mainstream of American political and economic thought.
Read more: If Trump Wins, Could Crypto Get Hester Peirce as SEC Chair?
The industry’s future now rests not on whether it will survive, but on how it will be shaped by the inevitable regulation to come. With an engaged voter base, organized advocacy, and growing bipartisan support, the question is no longer if digital assets will transform American finance, but when and how. That’s what the beginning of a winning streak looks like.
Kristin Smith is the CEO of the Blockchain Association, a Washington DC-based trade group representing some 100 leading companies in the crypto and blockchain industry. She leads efforts to influence public policy and regulation to foster the growth of the US digital asset ecosystem. With nearly a decade of experience on Capitol Hill, Kristin served in senior positions in both the House and Senate, focusing on technology policy.
