Trump Administration's Impact On Crypto Regulations Remains Uncertain

According to Cointelegraph, as Donald Trump prepares for his inauguration, the US president-elect has expressed intentions to reform cryptocurrency regulations. However, the New York Digital Investment Group (NYDIG) suggests that significant changes may not occur immediately. Greg Cipolaro, NYDIG's global head of research, highlighted in a January 10 research note that while there is optimism for the new administration to fulfill its campaign promises, some initiatives may take longer to implement. Cipolaro emphasized that the process involves appointing key officials, undergoing confirmation procedures, and assembling staff, which could delay immediate policy shifts. He noted that important crypto legislation, such as the FIT21 bill and stablecoin regulations, might face delays due to a more conservative and free-market-oriented legislature, which may be less inclined to compromise compared to when liberals controlled the Senate. Additionally, other pressing issues like geopolitical conflicts, budget concerns, global trade, and immigration might take precedence over crypto policy changes. While Trump's selections for the Treasury, Securities and Exchange Commission, and White House digital assets adviser seem favorable for the crypto sector, appointments for crucial roles at the Commodity Futures Trading Commission, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation remain pending. Cipolaro expressed optimism about the known appointments, stating that they appear beneficial for crypto and Bitcoin. One potential development could be the establishment of a strategic Bitcoin reserve, which Cipolaro mentioned might be swiftly enacted through an Executive Order. A draft proposal for such an order has already been circulated by a Bitcoin advocacy group on social media. However, Cipolaro cautioned that an executive order would be less permanent and could be easily revoked by a future president. He also suggested that a US strategic Bitcoin reserve could be funded by the $18.3 billion worth of cryptocurrency confiscated by the government, which would prevent the US from being a seller of Bitcoins but would not necessarily increase demand.