Crypto investors are optimistic as Donald Trump prepares to take office as the 45th President of the United States on 20 January, hoping for a more innovation-friendly regulatory landscape in the world’s largest economy.
Optimism Among Crypto Investors
The anticipation of Trump’s presidency has sparked hopes for a positive shift in cryptocurrency regulations. Many are particularly encouraged by his selection of Paul Atkins, a known advocate of market-friendly policies, as the potential Chair of the Securities and Exchange Commission (SEC).
Lummis Introduces the BITCOIN Act. Source: Cynthia Lummis
Atkins, who requires Senate confirmation, has a reputation for supporting innovation while maintaining oversight. His leadership is seen as pivotal for fostering a balanced approach to crypto regulations.
“I’m hopeful that Atkins and the new administration will encourage innovation in the crypto space while ensuring proper oversight,” said Anastasija Plotnikova, co-founder and CEO of Fideum, a regulatory and blockchain infrastructure firm.
Will Trump Issue a Crypto Executive Order?
Industry insiders speculate that Trump may issue an executive order as early as his first day in office, signalling his commitment to making crypto policy a national priority. The order could encourage collaboration between regulators and industry leaders, potentially establishing a dedicated crypto council.
Dmitrij Radin, founder of Zekret and CTO of Fideum, believes an immediate executive order is unlikely but expects an initial statement or directive. “Trump likes to make a splash. A statement or task force announcement would show he’s serious about being the ‘crypto president’ he promised to be,” said Radin.
Such a move could lay the groundwork for a broader regulatory framework. However, experts caution that meaningful legislation will take time. “Setting the right regulatory tone is crucial,” Plotnikova added, suggesting early actions may focus on strategic directives or in-depth reviews.
Congress and the BITCOIN Act
A key piece of legislation anticipated under the new administration is the BITCOIN Act, championed by Wyoming Senator Cynthia Lummis. This bill proposes creating a strategic Bitcoin reserve for the United States, reflecting the growing recognition of cryptocurrency’s role in the global economy.
Trump addressed the Bitcoin 2024 conference in Nashville, Tennessee in July, promising to make the US a global “crypto capital.” Source: YouTube
If the BITCOIN Act is passed, it could significantly impact Bitcoin’s value. Adam Back, co-founder of Blockstream and noted cryptographer, has suggested that Bitcoin’s market capitalisation would need an additional $2 trillion to reach $200,000 per coin. He believes the passage of the act could eventually propel Bitcoin to surpass the $1 million mark, elevating it above Apple to become the world’s second-largest asset.
Long-Term Outlook
While immediate changes in crypto regulation may not materialise during Trump’s first week, early signals from the administration could set the tone for the industry’s future. A balanced regulatory framework that fosters innovation while ensuring oversight could position the United States as a leader in the global crypto economy.
The crypto community will be watching closely as Trump assumes office, hoping his administration delivers on its promise to champion innovation in the sector.
