Trump vs. Musk: Crypto Clash Heats Up as Tim Scott Champions Blockchain & Broker Rule Gets Axed – Weekly Regulation Rundown

Crypto's political theater hit new highs this week—Trump takes a swing at Musk, while Senator Tim Scott throws weight behind blockchain innovation. Meanwhile, regulators quietly deep-six a contentious broker rule. Here's the breakdown.

Trump's Twitter Tantrum Targets Musk

The former president blasted crypto's favorite billionaire (again), this time over Bitcoin mining energy use—ironic, given his own NFT ventures. Musk hasn't fired back—yet.

Tim Scott's Blockchain Bet

The Republican senator introduced legislation positioning blockchain as infrastructure. Smart move or political theater? Either way, it's fuel for the pro-crypto policy push.

Broker Rule Gets Ghosted

SEC quietly shelved its controversial crypto broker proposal. No fanfare, no explanation—just another regulatory whiplash moment for an industry used to whiplash moments.

As always in crypto regulation: two steps forward, one step back—and Wall Street bankers still get bailed out while retail traders get 'educated'.

Trump Slams Musk Amid New Political Party Formation

U.S. President Donald Trump’s war of words with Elon Musk took a sharp turn this week, as the president publicly criticized Musk over the formation of a new political party.

U.S. President Donald TRUMP called tech billionaire Elon Musk a "train wreck" in a social media post on Sunday. #DonaldTrump #ElonMuskhttps://t.co/aDoUhWXSVR

On July 6, Trump lashed out on Truth Social, calling Musk a “train wreck” who had gone “off the rails” over the past five weeks. This response followed Musk’s July 5 post on X (formerly Twitter) announcing the launch of the “America Party.”

Trump, a long-time critic of third-party movements, said Musk’s efforts WOULD lead only to “disruption and chaos,” arguing such ventures have never succeeded in the U.S. political landscape.

The clash marks an escalation in what appears to be a growing political and ideological rift between two powerful figures with vested interests in the future of technology, freedom of speech, and digital assets.

Trump also took aim at the Democratic Party, accusing them of losing both their “confidence and their minds” in the ongoing cultural and financial shifts, particularly regarding crypto policy.

Digital Assets Are Not Going Away, Senator Tim Scott Says

Meanwhile, constructive progress on crypto regulation was unfolding in Washington. Senate Banking Committee Chairman Tim Scott (R-SC) led a July 9 hearing titled “From Wall Street to Web3”—the Senate’s first full committee hearing focused on digital assets.

In his opening remarks, Scott stressed that blockchain technology and digital assets are here to stay. He urged fellow lawmakers to build a robust and balanced regulatory framework that protects investors while allowing innovation to thrive.

Senator Tim Scott told his fellow U.S. lawmakers that digital assets are not going away in a committee hearing on Wednesday.#TimScott #Senatehttps://t.co/8Akk1p8zrs

Scott’s comments were supported by testimony from Ripple CEO Brad Garlinghouse, Blockchain Association’s Summer Mersinger, and Chainalysis co-founder Jonathan Levin.

He stressed the need for America to maintain a leadership role in shaping the future of digital finance, rather than ceding influence to jurisdictions like the UAE and Singapore.

The hearing highlighted bipartisan acknowledgment that digital asset markets require clearer regulatory guidance, even as lawmakers differ on the methods of implementation.

US Treasury Officially Scraps Crypto Broker Reporting Rules

In a MOVE for DeFi advocates, the U.S. Treasury Department has officially repealed a controversial broker reporting rule. The regulation, originally introduced under the Biden administration in late 2024, sought to impose broker-level reporting requirements on entities involved in decentralized finance and crypto infrastructure.

However, following a successful challenge under the Congressional Review Act—and a signature from President Trump—the rule has now been nullified.

The scrapped rule, titled “Gross Proceeds Reporting by Brokers,” would have gone into effect in February 2025 and required extensive data collection from DeFi platforms.

Its repeal has been welcomed by industry groups, who saw the rule as overly broad and detrimental to innovation. The Treasury will now revert to pre-2024 guidance, which exempts validators and wallet providers from broker classification, marking a key policy win for decentralized systems.

US Banking Regulator OCC Gets New Chief with Crypto Roots

Finally, regulatory leadership is taking a crypto-savvy turn. Jonathan Gould, a former Bitfury executive with DEEP experience in blockchain and financial policy, has been confirmed as the new head of the Office of the Comptroller of the Currency (OCC). Approved by a 50-45 Senate vote, Gould becomes the OCC’s first permanent chief since 2020.

Gould’s appointment shows a potential shift in how the U.S. banking regulator approaches digital asset oversight. During his prior tenure at the OCC under the Trump administration, Gould helped shape key positions on fintech and crypto integration in banking.

With his return, stakeholders hope the agency will adopt a more innovation-forward stance—especially as traditional banks explore blockchain-based products such as tokenized deposits and on-chain settlement rails.

Together, this week’s events reflect the growing entanglement between crypto, regulation, and politics. Whether through partisan clashes or bipartisan hearings, the evolution of U.S. digital asset policy is entering a more complex and consequential phase.