USDTrump Administration Considering 'America First' Crypto Strategy
November 2024 saw the presidential election between Republican representative Donald Trump and Kamala Harris who took over as the Democrat's choice following Joe Biden’s catalogue of blunders.
Donald Trump is a controversial figure who divides opinion and was only recently sentenced for his felony case regarding hush-money case that saw the president-elect walk free, despite the threat of jail time.
Despite the open criticism of Trump from many opponents in the US and beyond, his victory had an immediate positive impact on cryptocurrencies.
After being sworn in on January 20th, Trump will be eager to make an immediate impact which should see even more support for the crypto industry.
His determination to put America first in terms of crypto will be music to the ears of Ripple, USD Coin, and Solana, and this cryptocurrency project looks set to have a very bright future.
Election Result Impact on Crypto
In the immediate aftermath of the US presidential election, crypto values soared and this has continued with Bitcoin reaching new highs. This will come as no surprise to industry experts who closely followed the campaigns from both parties.
While the Biden/Harris administration was more coy on the future of crypto and had a history of imposing restrictive sanctions, Trump has completed a complete 180 to put his full weight behind it.
Back in 2019, Trump voiced concerns about cryptocurrencies, ranting about their volatile nature without real value. He even went on to add how an unregulated industry could facilitate illegal activities including the drug trade. His current opinion could not be more different.
As part of his campaign, Trump used his platform to pledge support for the industry and to defend the rights of US citizens to mine Bitcoin.
This came after the EIA (Energy Information Administration) demanded sensitive information from mining companies which they intended to publish. Many saw this as an attack on the crypto industry, with Trump using it to his advantage.
His intention to turn the US into a global crypto capital resonated with crypto users and industry members, and these declarations ensured cryptocurrencies were in a great position when he emerged victorious from the November election.
Clear support from the incoming administration has bolstered trust in the crypto industry, helping Bitcoin reach new highs and allowing altcoins to emerge as true alternatives.
Pro-Crypto Plans Under the New Administration
One of the first announcements Trump made that would affect the industry was the creation of the White House's first crypto role. David Sacks was announced as the new AI and crypto czar who will guide the new administration's policies for both issues.
His mandate includes creating a regulatory framework for the crypto industry in the US that will provide the clarity required for the industry to thrive.
The South African-American entrepreneur has a history of leading Silicon Valley fintech companies and he co-founded venture capital firm Craft Ventures, investing in companies including Meta, Airbnb, Slack, and Reddit.
Some of the first plans that Trump is set to implement include reducing the regulatory burden that crypto companies face by using his executive powers. He will also promote the adoption of digital assets.
A crypto advisory council will be created to facilitate the industry and could have up to 20 members. There have also been discussions about rescinding the SAB 121 accounting guidance implemented by the Securities and Exchange Commission in 2022. This has created a financial barrier that has restricted the ability of companies to hold cryptocurrencies for third parties.
The end of 'Operation Choke Point 2.0' and the alleged effort by banks to deny crypto companies entry into traditional financial systems will also be dealt with.
As Trump plans to remodel the US as the world’s crypto capital, he will also focus efforts on supporting US crypto projects.
How These Moves Could Affect US-Based Cryptocurrencies
The positive impact the Trump administration has already had is set to continue and US-based crypto companies will be the ones to benefit.
Meetings with the founders of Ripple, USD Coin, and Solana have already taken place with an eye on creating the country's first cryptocurrency reserve strategy.
However, these plans have not been without their detractors as concerns about how this will affect Bitcoin's long-term future come to the fore. Trump had noted that Bitcoin would be the primary asset in the new US crypto landscape, but it is argued that this new focus could impact that.
However, these appear to be details that will be ironed out as plans roll into action. The creation of new crypto advisory roles in the White House will help negotiate these areas and leave room for industry developments and scalability.
It is difficult to gauge exactly how successful Donald Trump’s attempts to position the US as a global leader in crypto will be, but his moves to create a stable infrastructure will give it every opportunity to thrive.
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