Potential Impact Of New U.S. Cryptocurrency Regulation

According to BlockBeats, on November 14, Jack, the deputy editor of BlockBeats, discussed the recent developments in U.S. cryptocurrency regulation during a recording of the Silicon Valley 101 podcast. In May, the "FIT for the 21st Century Act" was passed by a bipartisan vote in the U.S. House and Senate. This legislation aims to clarify the regulatory framework for cryptocurrencies, distinguishing between what constitutes a cryptocurrency and what is considered a security. This clarity is crucial for market regulation in the crypto sector. However, the bill still requires the President's signature to become law, which is expected to occur once Trump assumes office. Jack further explained that Trump's presidency is anticipated to bring immediate changes by slowing down the SEC's regulatory actions against cryptocurrencies. Many crypto institutions, particularly market makers, have temporarily exited the crypto space due to SEC lawsuits. The anticipated "SEC regulatory slowdown" could encourage these institutions to return, enhancing market liquidity. Additionally, this regulatory easing might create a more favorable environment for crypto companies to pursue IPOs during Trump's term, potentially leading to an increase in the number of crypto firms seeking public listings. However, it is important to note that many analysts believe the "FIT for the 21st Century Act" may not be enacted by 2025. The priority of crypto regulation is considered lower than tax reform and trade issues. In the early stages of Trump's presidency, the focus might be on more pressing matters. If progress is smooth, there could be an acceleration in advancing crypto regulatory issues in the latter half of the current Congress.