The 2024 Presidential Election Breakdown With Alex Thorn

Regulatory Shifts

The recent political shift is poised to significantly alter the regulatory landscape for crypto. Ryan Adams and Alex Thorn discuss how the new administration could reverse the regulatory headwinds that have stifled the industry, such as Operation Choke Point and restrictive stablecoin legislation 1. Alex anticipates swift changes, particularly with the Office of the Comptroller of the Currency (OCC), which could end discriminatory practices against crypto companies seeking bank accounts 2. He notes, "One of the first things you might see out of OCC is a rule expressively prohibiting bias against companies that want bank accounts if they're legal."

One of the first things you might see out of OCC is a rule expressively prohibiting bias against companies that want bank accounts if they're legal.

--- Alex Thorn

Despite potential relief, Alex warns that a unified government may not prioritize comprehensive crypto legislation, focusing instead on broader economic policies 3.

   

SEC Changes

Changes within the SEC are expected to bring a more favorable environment for crypto. Alex Thorn highlights the possibility of appointing a new acting chair who could immediately alter the SEC's enforcement approach 4. He suggests that lawsuits against major crypto exchanges like Coinbase and Kraken could be withdrawn or settled, marking a significant shift from the current enforcement stance. "I think among the first things you're going to get is exemptive relief," Alex states, indicating a move towards more lenient regulatory actions.

I think among the first things you're going to get is exemptive relief.

--- Alex Thorn

Ryan Adams adds that the new administration is likely to appoint pro-crypto officials, contrasting with previous leadership that was less supportive of the industry 5.

   

Chokepoint Impact

The concept of regulatory chokepoints has been a significant barrier for the crypto industry. Alex Thorn compares the current situation to "Chokepoint 1.0," which targeted legal industries like payday lending and firearms 6. He argues that crypto, as an open-source financial software, should not be subjected to similar constraints, advocating for rules that support innovation while targeting bad actors. "The crypto industry is not asking for a free pass," Alex emphasizes, "We want the regulators to go after scammers and thieves."

The crypto industry is not asking for a free pass. We want the regulators to go after scammers and thieves.

--- Alex Thorn

He also points out the need for long-term statutory relief to prevent future regulatory rollbacks, suggesting that immediate relief could be achieved through changes in the Treasury and OCC 7.