Trump’s Crypto Promises: Change May Come Slowly, Say Experts
As President-elect Donald Trump’s inauguration approaches, hopes are high for significant changes in U.S. cryptocurrency regulations. However, experts caution that while some reforms may be prioritized, others could take time to materialize. Greg Cipolaro, global head of research at the New York Digital Investment Group (NYDIG), emphasized in a January 10 research note that immediate policy shifts in the crypto space are unlikely.
Crypto Reforms on Trump’s Agenda
Trump’s campaign promises included a commitment to overhauling crypto regulations, generating optimism in the industry. Yet Cipolaro highlighted that other pressing national issues, such as geopolitical tensions, budget concerns, and immigration policies, may take precedence.
“There is renewed hope for campaign promises to become reality,” Cipolaro wrote, “but while some changes can happen quickly, others may take more time.”
Critical crypto legislation, including stablecoin regulations and a bill clarifying the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), may face delays. With a conservative legislature now in place, passing such measures could prove challenging due to reduced willingness to compromise, Cipolaro added.
Key Appointments and Potential Policy Impacts
Trump’s choices for financial leadership positions signal a potential shift toward crypto-friendly policies. Nominees for the Treasury, SEC, and the White House digital assets adviser are seen as positive for the industry. However, key appointments at agencies such as the CFTC, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) have yet to be announced.
“Not all of Trump’s picks have been revealed yet, but for the agencies that matter most to Bitcoin and crypto, we like what we see so far,” Cipolaro noted.
Strategic Bitcoin Reserve: A Quick Win?
One initiative that could see swift implementation is the creation of a strategic Bitcoin reserve. Cipolaro suggested this could happen via an executive order, noting that drafts for such an order have already circulated on social media.
The reserve could draw from the $18.3 billion worth of Bitcoin confiscated by the U.S. government, Cipolaro speculated. While an executive order would provide immediate action, he acknowledged its impermanence, stating it could easily be reversed by a future administration.
Challenges Ahead for Crypto Regulation
Despite the optimism surrounding Trump’s administration, significant hurdles remain. The crypto industry’s complex regulatory landscape, coupled with competing national priorities, means that substantive reforms could take years to fully realize.
“The execution of these initiatives may be a matter of priority,” Cipolaro wrote, pointing to the numerous other pressing issues on the administration’s agenda.
Conclusion
As Trump prepares to take office, his administration’s impact on crypto regulations remains a topic of intense speculation. While certain measures, such as a strategic Bitcoin reserve, could be implemented quickly, broader reforms will likely unfold over time. For now, the crypto industry watches closely as key appointments are finalized and policy directions take shape.