Eric Trump vows ‘sensible’ crypto regulation – what does this look like?

Eric Trump’s reiteration this week that his father’s administration will bring “sensible regulation” to crypto landed like a lightning bolt in an industry waiting for clarity.

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Eric Trump’s reiteration on CNBC this week that his father’s administration will make America the “crypto capital of the world” with “sensible regulation” landed like a lightning bolt in an industry that’s been waiting for clarity, direction and a champion in Washington.

Especially as Bitcoin, the world’s largest cryptocurrency by market capitalisation, recently surpassed $100,000. 

The potential is staggering, but bold promises won’t cut it; America needs action. The US must create a regulatory framework that’s clear, future-proof, and designed to unleash the full potential of digital assets while ensuring investor confidence.

Let’s be honest: crypto has been running circles around regulators for years. The industry’s rapid innovation has exposed the inefficiencies of traditional oversight.

From enforcement crackdowns to contradictory rulings, the status quo has been a mess. Entrepreneurs are left guessing their legal standing, while innovators and capital flee to countries with coherent policies.

The US – the world’s largest economy – must now either step up with a strategy to lead this financial revolution or watch as others claim the throne.

The first step in seizing this opportunity is clarity. A regulatory system that doesn’t even define basic terms like “security” versus “commodity” is destined to fail.

This isn’t academic; it’s fundamental. When companies don’t know how their assets will be classified or which laws apply, they hesitate to build and grow in the US.

An effective framework must provide these definitions in no uncertain terms. By eliminating ambiguity, regulators can unlock investment, encourage compliance, and supercharge innovation.

Transparency must come next. Regulation shouldn’t feel like a moving target or a game of cat-and-mouse. Developers, exchanges, and investors alike need straightforward guidelines that explain what’s required of them and why.

Eric Trump’s emphasis on making crypto policies “transparent” hits the mark here. A collaborative approach, where the government and industry work together to craft practical solutions, is essential. Regulation-by-enforcement – where agencies penalise without providing clear guidance – only alienates the very innovators the US needs to retain.

Paul Atkins, the likely incoming SEC chair, represents a chance to shift gears. Under Gary Gensler’s leadership, the SEC earned a reputation for being combative, wielding enforcement as its primary tool and often stifling progress.

Atkins, with his more pragmatic approach, could signal the start of a new era. Instead of treating crypto as a threat, the SEC could position itself as a partner, crafting rules that balance protection with innovation. This kind of collaboration would mark a seismic shift in the relationship between regulators and the crypto community.

Of course, not all regulation is welcome. Overreach is a real danger.

The US must tread carefully to ensure that its policies protect users without smothering creativity. Excessive restrictions would drive developers and investors to friendlier jurisdictions like Singapore, Switzerland, or the UAE, leaving the US behind in the race to dominate this transformative sector.

Sensible regulation strikes a balance: guarding against fraud and malpractice while creating an environment where innovation can thrive.

This moment isn’t just about the domestic economy – it’s about global influence. While China tightens its grip on financial systems with projects like the digital yuan, the US has a chance to present a radically different vision. By championing openness, decentralisation, and innovation, it can attract the best minds, the most ambitious projects, and the deepest capital pools. The stakes couldn’t be higher.

The president-elect’s son’s confidence in crypto reflects a growing recognition that digital assets are reshaping finance at a fundamental level. From decentralised finance (DeFi) to NFTs to blockchain-based payments, this tech is rewriting the rules of engagement in the global economy. For the US to lead, it must embrace this shift – not reluctantly, but enthusiastically.

The roadmap should be abundantly clear: craft policies that clarify, protect, and encourage. Eliminate the guesswork.

Engage the industry as a partner, not an adversary. Show the world that the US isn’t afraid to lean into the future of finance.

With the right moves, the goal of the US becoming the “crypto capital of the world” isn’t just achievable, it’s inevitable.

Nigel Green is the CEO of deVere Group, an independent global financial consultancy.