Cryptocurrency and Cybersecurity: A Challenging New Era for Lawmakers
With the Trump administration set to take office, Congress is expected to pass a raft of pro-crypto legislation, but cybersecurity is a major issue that has yet to be adequately addressed. Cryptocurrency, including bitcoin, has a faithful following among American adults, but there are concerns about its reliability and safety.
Dusty Johnson, a Republican representative from South Dakota, has advocated for a regulatory framework for digital assets, emphasizing the need for cybersecurity safeguards for financial intermediaries engaging with digital assets. His bill, FIT21, included specific provisions addressing crypto-cybersecurity.
However, experts doubt that the new administration will prioritize cybersecurity. Jeff Le, vice president of global government affairs and public policy at Security Scorecard, noted that the Trump administration’s appointees have a track record of supporting cryptocurrencies, and therefore may not be inclined to aggressively address cybersecurity issues.
The pro-crypto super PAC Fairshake has already raised over $100 million for the 2026 midterm elections, and top Andreessen Horowitz executives have been tapped for roles in the Trump administration. These developments may result in a more relaxed approach to regulation, as cryptocurrency proponents see increased regulation as a threat to their industry’s anonymity and decentralized nature.
According to Jason Baker, senior threat intelligence consultant at GuidePoint Security, the incoming administration’s inaction on regulation may have consequences for cybersecurity, as cybercrime often benefits from increasing cryptocurrency values. Baker notes that cybercriminals have also been changing tactics to evade legislation and scrutiny, switching to less traceable cryptocurrencies like Monero.
Some lawmakers, such as Steve McNew, global leader of blockchain and digital assets at FTI Consulting, believe that some cyber-crypto legislation may still happen, particularly governing ransomware payments and disclosures. Le expects the next Congress to address these issues and revisit proposed legislation like the Cryptocurrency Cybersecurity Information Sharing Act of 2022.
McNew notes that basic governance structures, such as defining roles, responsibilities, and parameters for how the industry will be governed, are still pending. Establishing a designated authority for digital assets is an imperative that has yet to be addressed, and basic parameters surrounding crypto, including definition, could hinder legislation.
Given the divided Congress, it may be difficult to craft an agreement on cryptocurrency governance and cybersecurity. As a result, cybersecurity concerns may be relegated to the backburner, leaving cryptocurrency users vulnerable to threats.