Crypto’s Urgent Christmas Plea to Washington: Deliver Regulatory Clarity Now

Washington's regulatory silence is costing the crypto industry billions—and patience is wearing thinner than a Bitcoin miner's margins during a bear market.

The Regulatory Standoff

While traditional finance enjoys clearly marked playing fields, digital assets operate in a regulatory no-man's-land that's creating unnecessary friction and stifling innovation. Major players from Coinbase to decentralized protocols are demanding straightforward rules instead of enforcement-by-surprise.

Market Impact

Investment dollars are sitting on the sidelines as institutional players wait for regulatory green lights. The uncertainty creates a compliance nightmare where even well-intentioned projects risk running afoul of ambiguous guidelines.

The Clock's Ticking

Every month without clear frameworks pushes more blockchain talent and capital overseas to jurisdictions that actually understand digital assets—because nothing says 'competitive disadvantage' like watching other countries eat your lunch while you're still arguing about the menu.

Ultimately, the industry's holiday wish isn't for preferential treatment—just for regulators to stop treating crypto like that mysterious relative who shows up unannounced every Thanksgiving.

TLDR

• Over 70 crypto organizations urged President Trump for regulatory clarity.
• The letter requests tax rule updates for mining, staking, and digital assets.
• Industry seeks DeFi protections and clarification on developer rights.
• Crypto sector calls for clarity on non-taxable events like airdrops and for

As the year draws to a close, over 70 cryptocurrency and blockchain organizations have united in a collective appeal to the White House. The groups are calling for immediate action to address the uncertainty surrounding the regulatory framework for digital assets.

This plea, sent to President Donald TRUMP on November 20, 2025, highlights concerns about the lack of clear regulations and their growing impact on the sector. The timing of the letter, just weeks before the end of the year, reflects a pressing need for regulatory clarity in 2026.

The letter, spearheaded by the solana Policy Institute, urges government agencies to clarify tax rules, provide guidelines for decentralized finance (DeFi) projects, and ensure the rights of developers.

The organizations hope that these actions will pave the way for a more predictable and secure environment for crypto investors, developers, and users alike. According to the coalition, addressing these issues would create more opportunities for growth and stability within the crypto industry.

Tax Treatment and Clarification on Digital Assets

One of the central issues addressed in the letter involves the tax treatment of digital assets. Crypto organizations are seeking clarity from the Treasury Department on several key areas, including the taxation of staking rewards and mining activities.

The letter calls for mining and staking rewards to be considered self-created property, taxed only upon disposition. Additionally, the group requests IRS confirmation that certain blockchain transactions, such as wrapping and cross-chain burns, do not trigger taxable events.

Furthermore, the letter pushes for an update to the rules surrounding airdrops, forks, and rebase events. The organizations are concerned that these events could lead to phantom income, where crypto holders are taxed on gains that don’t represent actual financial benefits.

The coalition also requests that the de minimis tax rules, which exclude small gains on purchases, be applied to digital assets. This WOULD allow users to buy goods and services with cryptocurrency up to $600 per transaction without facing tax obligations.

DeFi Protections and Developer Rights

Another major request from the coalition is to clarify the regulatory treatment of decentralized finance (DeFi) projects and protect developers from potential enforcement actions.

The organizations are calling on the SEC to provide interim guidance, ensuring that developers of permissionless protocols are not subject to enforcement during the ongoing rulemaking process. This MOVE is seen as vital to fostering innovation within the DeFi space, allowing developers to continue building without the fear of legal repercussions.

The letter also emphasizes the need for SAFE harbors and sandboxes that would allow DeFi projects to launch their tokens and protocols in a controlled environment. By using models like SEC Commissioner Hester Peirce’s Token Safe Harbor Framework, the organizations hope to create clear guidelines for the DeFi sector. The ultimate goal is to establish a regulatory environment where developers can thrive while protecting users and investors.

Addressing Broader Regulatory Challenges

The letter also touches on broader issues affecting the crypto sector, such as the classification of digital assets and the application of the Bank Secrecy Act to non-custodial blockchain services. The coalition calls on FinCEN to update its guidance, confirming that the Bank Secrecy Act does not apply to non-custodial software, which has been a point of contention within the industry.

Additionally, the letter urges the Department of Justice to consider protections for DeFi developers under civil liability, similar to the protections provided to internet service providers under Section 230.

These requests also include the dismissal of charges against Tornado Cash developer Roman Storm and the reversal of his conviction. The organizations argue that the case has far-reaching consequences for the DeFi space and could set a dangerous precedent for the regulation of permissionless protocols.

As the year progresses, the crypto industry continues to seek regulatory clarity to create a more stable environment. Whether the WHITE House will act on these requests remains to be seen, but the growing coalition suggests that the urgency is felt across the industry.