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Trump presidency signals major shift in US crypto policy

Trump presidency signals major shift in US crypto policy

GrafaGrafa2025/01/21 08:50
By:Mahathir Bayena

The inauguration of Donald Trump as the 47th president of the United States on January 20 signifies a pivotal moment for cryptocurrency regulation, igniting optimism among investors and market participants.  

Analysts predict that Trump's administration will create a more favorable environment for digital assets, bolstered by his campaign's pro-crypto rhetoric.

This sentiment was immediately reflected in Bitcoin’s (CRYPTO:BTC) price, which surged to a record $109,000 on inauguration day.  

Adding to investor confidence, Trump has appointed crypto-friendly officials, such as David Sacks, as White House Crypto Czar.  

“We have had bull runs in crypto before in a cyclical fashion, but of all times I can remember, this is the first time where the hype is actually at the government level,” remarked Eugene Epstein, head of trading at Moneycorp.

The U.S. currently holds over 200,000 Bitcoin—worth approximately $22 billion—acquired through judicial seizures. During his campaign, Trump suggested establishing a strategic Bitcoin reserve for the nation, inspired by El Salvador's Bitcoin-centric policies.  

Prominent supporters, including MicroStrategy CEO Michael Saylor, advocate for leveraging Bitcoin as a hedge against inflation.

“Masses showed up and voted for more economic freedom in 2024 when they elected Donald Trump,” Coinbase CEO Brian Armstrong added.  

However, uncertainties remain about the scale and timing of Trump's potential Bitcoin acquisitions.

Epstein cautioned that market expectations may already be priced in, and a failure to meet these could result in corrections.  

"Digital assets should be mined, minted, and made in the USA," Trump stated in his inaugural address, emphasising his desire to clarify cryptocurrency regulations.

This suggests a sharp divergence from the previous administration’s regulatory approach.

Stacy Herbert of El Salvador's National Bitcoin Office highlighted the potential influx of capital into the crypto sector under Trump’s presidency, calling it “promising for global adoption.”

Despite the enthusiasm, experts urge caution.

Nigel Green of deVere Group warned that while pro-crypto policies could stimulate growth, they also risk fueling speculative trading driven by social media hype.

As Trump's presidency unfolds, the crypto industry will closely watch his administration’s moves, balancing optimism with the need for measured expectations in this evolving market.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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