The fourth quarter of 2024 was defined by the election and what came after it. In Washington, the leadership of the agency most identified with crypto enforcement is about to change, and the incoming administration has signaled a very different approach. A federal appeals court set a limit on how far sanctions can reach into open-source code. And in the states, lawmakers started filing bills to hold bitcoin in public treasuries. This roundup covers the developments that matter most to New Hampshire Blockchain Council members as the 2025 legislative session approaches.
Gensler announces his departure from the SEC
On November 21 the SEC announced that Chair Gary Gensler will step down effective at noon on January 20, 2025, Inauguration Day. He had led the agency since April 2021. The SEC's own release says that under Gensler the agency "brought actions against crypto intermediaries for fraud, wash trading, registration violations, and other misconduct," and that 18 percent of the SEC's tips, complaints and referrals in the last full fiscal year were crypto-related.
For builders, the significance is simple. The regulation-by-enforcement era that shaped the last three years of digital-asset policy is ending, and the question now is what replaces it.
A new SEC chair and a White House crypto czar
On December 4, President-elect Trump said he would nominate Paul Atkins to chair the SEC. Atkins served as an SEC commissioner from 2002 to 2008 and now runs the consulting firm Patomak Global Partners. In announcing the pick, Trump said Atkins "recognizes that digital assets & other innovations are crucial." Atkins must still be confirmed by the Senate.
Two days later, Trump named David Sacks, a former PayPal chief operating officer, as "White House A.I. & Crypto Czar." Reuters reported that the role is meant to help establish a legal framework for the crypto industry.
Markets took notice. On December 5, bitcoin rose above $100,000 for the first time, a move Reuters tied to optimism about the incoming administration and the Atkins nomination.
The Fifth Circuit rules for Tornado Cash users
On November 26 the U.S. Court of Appeals for the Fifth Circuit decided Van Loon v. Department of the Treasury. The Treasury Department's Office of Foreign Assets Control had sanctioned Tornado Cash, a privacy tool on Ethereum, in 2022. Writing for the panel, Judge Don Willett held:
"Tornado Cash's immutable smart contracts (the lines of privacy-enabling software code) are not the 'property' of a foreign national or entity, meaning (1) they cannot be blocked under IEEPA, and (2) OFAC overstepped its congressionally defined authority."
The court reversed the lower court and sent the case back. The ruling is narrow, but it matters to anyone who writes or uses open-source code. A smart contract that no one owns or controls is not property that the government can block under the sanctions law.
States start filing bitcoin reserve bills
The idea of a public bitcoin reserve moved from campaign rhetoric to bill text this quarter.
- Pennsylvania. On November 19, Rep. Mike Cabell introduced HB 2664, under the memo title "Strategic Bitcoin Reserve." It would let the State Treasurer invest in bitcoin or other digital assets, capped at 10 percent of a covered fund in a calendar year. It was referred to the House Finance Committee, and the session ended without further action.
- Texas. On December 12, Rep. Giovanni Capriglione announced he had filed a bill to establish a bitcoin reserve within the Texas state treasury. CNBC reported that it would let the state accept taxes, fees and donations in bitcoin and hold them for at least five years.
According to the same CNBC report, Satoshi Action Fund said discussions were under way in as many as 10 more states. That puts reserve legislation on the agenda for statehouses, including New Hampshire's, in 2025.
What it means for New Hampshire
New Hampshire also has new leadership coming. Kelly Ayotte won the governor's race in November and takes office in January. With a friendlier federal posture on the way, states have more room to lead, and the first ones to act will set the template for others.
The council believes New Hampshire should use the 2025 session to do three things: protect the basic rights to hold, use, mine and build with digital assets; let the state treasury hold bitcoin as part of a strategic reserve; and study how stable tokens and tokenized real-world assets could work in the state. The Tornado Cash ruling is a reminder of what is at stake in that work, because software developers and node operators need clear protection from being treated like financial intermediaries. New Hampshire is well placed to lead in 2025, and the council will keep members informed as bills are filed.