Key Takeaways
- Trump will take office after being sworn in at the inauguration ceremony, which will be held on January 20, 2025.
- He is expected to introduce various regimes and other measures to make the US a crypto-friendly country.
- His presidency could significantly affect crypto and traditional markets by boosting their market cap to new heights.
2024 was a tremendous year for the overall crypto market and the main reason behind this wonderful surge was the US Presidential election and the subsequent victory of Donald J Trump. With Trump about to take charge of the office on January 20, 2024, we can expect a couple of crypto regimes on the way. Many people are looking forward to these developments. That’s why we have decided to bring forth this article. Here, we will discuss these potential regimes and what they could mean for the crypto world.
Trump’s Ascension: Path To A New Future
With Donald Trump’s victory, the American Crypto Industry is preparing itself for a grand remake. Here, we will look into the major aspects surrounding his crypto policy and what to expect from him during his initial phase.
1. Crypto-Friendly Environment
Trump has been an active crypto enthusiast during his election campaign, especially of the original cryptocurrency. He has also conveyed his desire to set up a more crypto-favorable environment in the US. Therefore, he will likely remove a lot of regulations that are currently working against crypto, especially the ones that were put forward by the SEC head Gary Gensler. This will most likely done following his official resignation date in January. Also, the newly appointed SEC head Paul Atkins, who Trump nominated is most likely to help him on this path.
2. BTC National Reserve Creation
This is one of Trump’s major ambitious proposals. This project aims to establish BTC as a national reserve asset. In simple words, BTC will be used as a backup reserve for funds by the US. The state is currently slowly accumulating BTC. This not only helps in the process of introducing crypto-friendly regimes but also helps to boost the standing of the original cryptocurrency. There is also another probability that many other countries will follow in the footsteps of the US and start slowly using cryptocurrency for various purposes.
3. Crypto Council Formation
As Trump is about to introduce a lot of changes into the US crypt realm, it requires careful handling. That’s where the new crypto council comes in. The council created by Trump acts as a guide in the making of various policy decisions and other key innovation plans within the crypto sector. The council is likely to include prominent members of the crypto world who are in favor of Trump’s idea of creating crypto-friendly storage.
4. Introducing Measures To Counter Existing Regulations
There are a lot of challenges and other regulatory measures against cryptos in the US. It would be difficult to overthrow all these regimes. So, there is a good chance that he will introduce various measures to counter these existing challenges.
Implications Behind The Regime Shift
Trump’s active support of crypto assets and currencies has the potential to significantly boost their value in the crypto market. This can be proven by taking into account the recent Bitcoin rally following Trump’s victory in the US Presidential Election. Trump’s charge is going to have a huge impact on sustainable investing in the US. We may even see a spike in the headcount of people flocking towards crypto trading.
Trump’s Inflation Redemption Act is also another key factor that could lead to this state. There is also the fact that Trump outspoke about boosting the crypto mining industry in the US. Following this speech, various mining stocks including MARA and RIOT have seen significant boosts in their market price. This depicts that it is not just the crypto market that can significantly grow but also the associated traditional stocks and ETFs in the traditional market.
Final Remarks
Even though no one can predict the future with 100% accuracy, Trump’s taking charge of the office is sure to bring along a lot of changes in the economy and regulatory landscape of the US. It will give a significant boost to the crypto and other emerging markets out there. While this is so, there is also the possibility that it will increase the volatility in the market, and also may lead to various environmental and other risks.
With all this on the horizon, it is very crucial to make preparations for these potential outcomes. You may also need to prepare measures to counter the various challenges that will arise due to these regulation shifts. As of now, we can only wait and see what unfolds in the crypto industry.
