The cryptocurrency industry is expressing optimism as Senator John Thune of South Dakota was elected as the new Senate Majority Leader on November 13. Thune’s victory over Elon Musk-backed Senator Rick Scott of Florida has sparked discussions about the future of crypto regulation in the United States. Following his win, Thune promised to work on making America prosperous again by “streamlining the bureaucratic machine” and overturning what he described as “costly Biden-Harris regulations.”
Thune’s election comes at a pivotal moment for the crypto community, which has been pushing for clearer and more supportive regulations. His alignment with the pro-crypto agenda of President-elect Donald Trump further boosts expectations that Thune will advocate for policies that favor the digital asset sector.
Thune’s record suggests that he could be an ally for the crypto industry in Congress. He has previously supported expanding the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) to regulate cryptocurrency. This stance is viewed as more favorable to the crypto community compared to the U.S. Securities and Exchange Commission (SEC), which has taken a more restrictive approach to crypto regulation.
In 2022, Thune co-sponsored the Digital Commodities Consumer Protection Act (DCCPA), a bill aimed at extending the CFTC’s regulatory powers over crypto markets. This bill specifically referred to major cryptocurrencies like Bitcoin and Ethereum as “digital commodities” and positioned the CFTC as the regulatory body best suited to oversee their activities. The bill was seen by some as a critical step toward providing much-needed regulatory clarity, although they also noted that the bill needed further work and clarification to be fully effective.
Thune’s stance has been seen as a counter to the SEC’s more aggressive approach toward regulating cryptocurrencies. The SEC has been involved in numerous legal actions, including its high-profile lawsuit against Ripple Labs, a case that has drawn widespread attention for its impact on the broader crypto market. Thune’s position indicates his preference for a more balanced and supportive regulatory framework for digital assets.
Thune’s Efforts to Challenge SEC Overreach
In addition to his support for the DCCPA, Thune has been vocal about overturning specific regulatory measures that he believes hurt the crypto industry. One notable instance was his vote in favor of a measure to reverse the SEC’s Staff Accounting Bulletin No. 121 (SAB 11) in May. This rule required crypto custodians to classify customer assets as liabilities on their balance sheets, a move that critics argued could stifle innovation in the sector.
Thune’s criticism of this regulation, and his vote against it, have earned him praise from crypto advocates, including Coinbase’s lobbying group, Stand With Crypto. The group has described him as a “strong crypto supporter,” a sentiment echoed by Fox Business journalist Eleanor Terrett, who referred to Thune as “very pro-crypto” in a post on X (formerly Twitter) on November 13.
While Thune has strongly supported Trump’s pro-business and regulatory policies, it’s worth noting that the president-elect did not endorse any candidate in the contest for Senate majority leader, according to reports from CNBC. Thune had even criticized Trump during the 2016 presidential race, making his alignment with Trump now somewhat surprising to some.
Despite this, a number of Trump’s allies, including Tesla CEO Elon Musk, conservative commentator Tucker Carlson, and Robert F. Kennedy Jr., had backed Senator Rick Scott for the position of majority leader. Scott, who has worked alongside pro-Bitcoin Senator Cynthia Lummis, co-introduced legislation to allow U.S. retirement plans to invest in cryptocurrencies like Bitcoin. His bill had gained traction with the growing number of Bitcoin enthusiasts who believe that such exposure could drive further mainstream adoption of digital assets.
With Thune now in a position of power as Senate Majority Leader, the crypto community is hopeful that his leadership will result in a more favorable regulatory environment. His track record suggests that he will continue to push for policies that promote innovation in the digital asset space while ensuring that investors are protected from fraud and market manipulation.
The crypto industry has long sought regulatory clarity, particularly in relation to which government agencies should oversee digital assets and how these assets should be treated under existing laws. Thune’s support for the CFTC and his criticisms of the SEC signal a potential shift toward a more pragmatic and industry-friendly approach in Washington.
| Action/Position | Date | Detail |
|---|---|---|
| Co-sponsored the Digital Commodities Consumer Protection Act (DCCPA) | 2022 | Aimed to extend the CFTC’s regulatory powers over crypto |
| Voted to overturn SEC’s SAB 11 (crypto custodians rule) | May 2024 | Reversed rule requiring crypto custodians to list customer assets as liabilities |
| Criticized SEC’s overreach in crypto regulation | Ongoing | Advocated for clearer, more balanced regulation via the CFTC |
The Growing Influence of Crypto-friendly Policies
Senator Thune’s election as Senate Majority Leader brings new hope to the cryptocurrency industry. His past support for a more crypto-friendly regulatory framework, including his advocacy for the CFTC’s role in crypto regulation and his opposition to the SEC’s actions, positions him as a key figure in shaping future crypto policy. As the U.S. continues to grapple with how best to regulate digital assets, Thune’s leadership could help usher in an era of greater clarity and support for innovation within the industry. If he continues to champion policies that protect consumers while fostering growth, the crypto sector in the U.S. may see significant positive changes in the years ahead.
Featured image credit: Gage Skidmore via Flickr
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