Trump’s Inauguration Sparks Crypto Optimism, But Major Reforms May Take Time: NYDIG

With Donald Trump’s inauguration just days away, the crypto community is hopeful for regulatory reforms. However, the New York Digital Investment Group (NYDIG) cautions that while changes are on the horizon, significant crypto legislation may take longer to implement.Challenges to Immediate Crypto ReformsNYDIG’s global head of research, Greg Cipolaro, noted in a Jan. 10 research note that immediate execution of crypto-related initiatives is unlikely. Key reasons include:Unfilled Positions: Many crucial roles in agencies like the Commodity Futures Trading Commission (CFTC) and Federal Deposit Insurance Corporation (FDIC) remain unannounced.Legislative Hurdles: Bills addressing stablecoin regulations and clarifying the roles of securities and commodities regulators may face delays as the new legislature prioritizes other pressing matters like the debt ceiling, trade policies, and geopolitical concerns.Strategic Bitcoin Reserve PossibilityOne potential fast-track reform could be the establishment of a U.S. strategic Bitcoin reserve. Cipolaro noted that this could happen via Executive Order, citing a draft idea circulated by a Bitcoin advocacy group.The reserve could draw from the $18.3 billion worth of confiscated Bitcoin held by the U.S. government.While this would prevent the government from becoming a major Bitcoin seller, Cipolaro emphasized it wouldn’t create incremental demand for the cryptocurrency.Optimism for Crypto-Friendly AppointmentsCipolaro expressed optimism about Trump’s picks for the Treasury, Securities and Exchange Commission (SEC), and digital assets advisor, describing them as positive for the crypto sector. However, he acknowledged the need for these appointees to be confirmed and assemble their teams before impactful actions can be taken, according to Cointelegraph.