As Donald Trump prepares to take office as the 47th President of the United States, his campaign promises to reform cryptocurrency regulations have sparked widespread discussion. However, according to a recent research note from the New York Digital Investment Group (NYDIG), these changes may not materialize as quickly as some anticipate.
Greg Cipolaro, NYDIG’s global head of research, cautioned that immediate changes to crypto policy are unlikely following Trump’s inauguration on January 20. “While the inauguration has renewed hopes for the incoming administration to act on campaign promises, some initiatives may take longer than others to implement,” Cipolaro wrote in the note dated January 10.
Cipolaro pointed out that key officials still need to be appointed, confirmed, and supported by their respective teams before significant regulatory changes can occur. Moreover, broader legislative efforts, such as clarifying the roles of securities and commodities regulators or establishing rules for stablecoins, may face delays. A more conservative legislature, he noted, could present challenges in achieving consensus.
“The execution of these initiatives may be influenced by competing priorities,” Cipolaro explained, listing issues such as geopolitical conflicts, budget negotiations, global trade policies, and immigration as potentially more pressing matters for the administration.
Trump’s appointments for positions critical to cryptocurrency regulation, such as the Treasury Secretary, Securities and Exchange Commission (SEC) Chair, and White House Digital Assets Adviser, have been viewed positively by the crypto community. However, appointments for key roles at the Commodity Futures Trading Commission (CFTC), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) remain pending.
“Not all of Trump’s picks have been revealed, but from what we know so far, the outlook for agencies that influence crypto policy appears promising,” Cipolaro noted.
One area of potential swift action could be the creation of a strategic Bitcoin reserve. Cipolaro suggested that such a move could be implemented through an executive order, citing draft proposals already circulating within Bitcoin advocacy groups. However, he warned that executive orders are inherently impermanent and could be reversed by future administrations.
Cipolaro also highlighted the U.S. government’s possession of approximately $18.3 billion worth of Bitcoin, much of which was confiscated in legal actions. This existing reserve, he argued, could serve as a foundation for a strategic initiative without requiring additional purchases.
“Using confiscated Bitcoin alleviates concerns that the U.S. would be a seller in the market, but it doesn’t necessarily create new demand,” Cipolaro concluded.
