As Donald Trump prepares for his upcoming inauguration, discussions surrounding the future of cryptocurrency regulations are intensifying. While the president-elect has expressed intentions to revamp these regulations, experts caution that substantial changes might not materialize immediately.
The New York Digital Investment Group has highlighted the challenges ahead in a recent research analysis. They emphasize that major modifications to crypto policy are unlikely right after the inauguration due to the need for appointing key officials and having them confirmed before any initiatives can be implemented. This procedural aspect could delay anticipated regulatory adjustments.
The outlook for other crucial legislation, such as the FIT21 bill and regulations surrounding stablecoins, appears similarly protracted. The return of a more conservative legislative approach may lead to increased hesitancy in reaching compromises compared to when the Senate was under liberal control. Lawmakers are likely to prioritize pressing issues like geopolitical conflicts, budget concerns, tariffs, and immigration, which could push crypto regulations further down the agenda.
Initial appointments made by Trump in influential financial positions, including roles within the Treasury and Securities and Exchange Commission, have generated optimism within the cryptocurrency community. However, the absence of announcements regarding key posts at organizations like the Commodity Futures Trading Commission and the Federal Deposit Insurance Corporation leaves uncertainty about the regulatory landscape.
One potential development that could arise swiftly is the establishment of a strategic Bitcoin reserve. There are suggestions that this initiative may be triggered by an executive order, with a draft proposal already in circulation among advocacy groups. However, reliance on such an order does present a risk, as it could be rescinded by future administrations.
This strategic reserve could derive from the significant amount of Bitcoin previously confiscated by the government, estimated at $18.3 billion, alleviating concerns about the U.S. potentially entering the market as a seller. Nonetheless, experts point out that while this move could solidify current holdings, it would not necessarily stimulate additional demand for Bitcoin .
