Crypto Industry Anticipates Policy Changes Post Trump Victory

The cryptocurrency industry is on the brink of a significant transformation as it anticipates a favorable policy environment following the recent election of President-elect Donald Trump. With his decisive victory and a Republican majority in Congress, the crypto sector is pushing for a comprehensive set of policies aimed at promoting the adoption of digital assets. This shift comes after a period of stringent regulations under the previous administration, which had left many in the industry feeling stifled.

Trump has openly courted the crypto community, branding himself as a "crypto president" and promising to create a more welcoming environment for digital currencies. Industry leaders believe that he now has a strong mandate to implement changes that could reshape the landscape of cryptocurrency regulation. Mike Belshe, CEO of BitGo, expressed optimism, stating, "We've had an administration that's been very negative, and so we're looking forward to unlocking that gridlock." This sentiment reflects a broader hope within the industry for a more supportive regulatory framework.

As Bitcoin's value surged above $90,000, fueled by rising optimism regarding policy changes, many analysts are predicting that it could soon reach the $100,000 mark. The crypto industry is now advocating for several key measures, including executive orders that would enhance access to banking services for crypto firms and the appointment of pro-crypto individuals to critical regulatory positions. The appointment of a new chair for the Securities and Exchange Commission (SEC) is also a priority, as the industry seeks to move away from the restrictive policies of the past.

In the wake of the election, discussions are underway regarding the formation of a crypto advisory council, although the specific individuals who will serve on this council remain uncertain. Kara Calvert, head of U.S. policy at Coinbase, emphasized the importance of having strong leadership in Washington, stating, "It's important I think for companies like Coinbase, but also for all the smaller startups... to have a point of view." This highlights the need for a unified voice in advocating for favorable policies.

Under the previous administration, the SEC and Treasury Department had taken a hard stance against crypto companies, citing concerns over securities violations and anti-money laundering laws. However, with Republicans now in control, there is a palpable sense of hope that these policies will be relaxed. The industry is particularly eager for Trump to follow through on his promise to establish a strategic U.S. bitcoin reserve, a move that could significantly legitimize the asset class.

Many crypto firms have faced challenges in securing banking partnerships due to regulatory scrutiny. Jonathan Jachym from Kraken noted that there has been "negative pressure" from bank regulators, which could change if a new regulatory framework is established. Trump has previously stated that he would not allow banks to "choke" crypto companies out of the financial system, and some industry leaders believe that an executive order could be a viable solution to this ongoing issue.

As the crypto industry prepares for a new era, there is also a push for faster regulatory approvals, such as "no-action" letters from the SEC that would allow crypto companies to operate without fear of penalties. With Republicans expected to take control of the House, there is potential for expedited legislation that could benefit the industry. This could pave the way for significant advancements in crypto-friendly laws.

The cryptocurrency industry stands at a pivotal moment, with the potential for transformative policy changes on the horizon. As the new administration takes shape, the focus will be on how effectively it can implement these changes to foster a more supportive environment for digital assets. The coming months will be crucial in determining whether the crypto industry can capitalize on this opportunity to thrive in a more favorable regulatory landscape.