Trump’s transformation from bitcoin skeptic to “crypto president” paid out handsomely.
Only a few years ago, Trump denigrated digital assets, calling bitcoin a hoax. However, his recent electoral victory was largely driven by his crypto-friendly commitments, which opened up millions of dollars in campaign funds.
Now that Trump is returning to the White House, the sector will have to determine if its investments in a second term were profitable. What they want to see is this.
RESTRICTIONS
Trump’s pledge to remove regulatory constraints that have plagued the cryptocurrency sector in recent years is one of the main tenets of his agenda.
The Biden administration’s management of the industry, which has been marked by acrimonious disputes between the Securities and Exchange Commission and prominent cryptocurrency firms, has drawn a lot of criticism.
“I mean, they individuals simply created a great deal of uncertainty in this whole sector. It was unthinkable. According to Tim Kravchunovsky, CEO of the decentralized telecom startup Chirp, “there was no clear guidance, no regulations.”
He noted in an interview with Business Insider that Washington has lost its competitive edge as a result of regulatory conflicts that have forced cryptocurrency businesses out of the US.
That opinion was echoed by Matt Mena, 21Shares’ crypto research strategist.
“By creating a more welcoming regulatory environment, this approach could draw back projects and founders who have left the country due to regulatory uncertainty, generating thousands of new jobs and millions in tax revenue, bolstering the economy while advancing the crypto sector,” he told BI via email.
In light of this, the sector expects Trump to appoint more crypto-friendly individuals to replace regulatory chiefs. According to Mena, the president-elect is already surrounded by people like Howard Lutnick, JD Vance, Robert F. Kennedy, and Elon Musk.
Meanwhile, Kravchunovsky proposed that Washington offer incentives like government grants and tax breaks to enable Trump’s aim to make the US a “crypto hub.”
Digital bills
Crypto gamers will also be keeping an eye on the legislative front for the adoption of several important laws and the repeal of SAB 121.
Because it requires banks to retain a comparable amount of cash against their crypto assets, SAB 121, an SEC policy document maintained by the Biden administration, deters US lenders from serving as crypto custodians. Institutional investors would have more freedom to embrace digital assets if it were removed.
Mena also mentioned the excitement surrounding FIT21, a law that aims to make clear the regulatory responsibilities surrounding digital assets. He said that this measure will increase consumer safeguards.
In the meanwhile, three important pieces of stablecoin legislation that seek to impose restrictions on future stablecoin supply might move more quickly under Trump’s administration.
Bitcoin Holdings?
There has been a lot of conjecture since Trump’s win that a strategic bitcoin reserve may soon be established.
The notion that the president-elect’s administration will purchase bitcoin as a reserve asset has excited cryptocurrency bulls, even if he hasn’t explicitly stated such a proposal.
“We can already see that [crypto] is becoming more and more trusted, both among nations and organizations. It is being adopted by an increasing number of nations. It’s not a matter of years, in my opinion. “I believe it will only take a few months,” Kravchunovsky stated.
The election has solidified the position of cryptocurrency markets in the mainstream, regardless of how the sector evolves under Trump.
“Crypto is now essentially legal in the U.S., marking a major turning point for the industry,” Mena stated.
By the end of 2026, the overall market value of the cryptocurrency sector might reach $10 trillion, a significant increase from the present $2.5 trillion level, thanks to crypto-friendly changes, according to Kendrick.
He restated his prediction that by the end of the next year, bitcoin will reach $200,000.
