President Trump’s Crypto-Friendly Stance: Will It Help Bitcoin and Beyond?
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As former President Donald Trump prepares, Speaking at the Bitcoin 2024 conference in Nashville this week.This big event is generating the most excitement in the cryptocurrency community, with Bitcoin USD (BTC) soaring more than 9% over the past month and nearly 58% this year, breaking through $66,500 and approaching its all-time high set earlier this year.
Cryptocurrency investors are also bracing themselves for some interesting developments this week. Securities and Exchange Commission approval (SEC) has warned eight exchange-traded funds (ETFs) that hold Ethereum (ETH), the world’s second-largest cryptocurrency.
Such ETFs could become a staple in 401(k), IRA, and pension plans, which could help expand mainstream acceptance. In particular, many of the fund managers awaiting such approval are already managing ETFs that invest directly in Bitcoin, setting a precedent for new ether-focused funds.
The Trump Administration’s Crypto-Friendly Stance
The cryptocurrency industry is hoping that the upcoming U.S. presidential election will usher in a softer approach to enforcement, ending a long-running battle with Wall Street’s top regulators. Former President Donald Trump has recently taken a liking to the $2.5 trillion cryptocurrency industry, and is hosting a Bitcoin-focused fundraiser on July 27.
The Republican candidate has previously criticized cryptocurrencies, calling Bitcoin a “fraud,” but Trump’s recent comments have been more supportive, calling the cryptocurrency “amazing.” An interview with Bloomberg published last weekLegal experts predict that if he is elected, the SEC will take a less aggressive stance on digital assets.
According to Data from betting application PolymarketDonald Trump has a 62% chance of beating Kamala Harris. After the assassination attempt on Trump on July 20th last Saturday, the odds of him winning the 2024 US presidential election have increased significantly.
Also Trump We’ve chosen cryptocurrency-friendly Senator JD Vance. (Ohio Republican) nominated for Vice President. In 2022, Vance owned $250,000 worth of Bitcoin.
Michael Selig, a partner at Willkie Farr & Gallagher LLP, suggested that the Trump administration is likely to “reset and rethink the SEC’s cryptocurrency regulatory policy.” Resolving ongoing enforcement actions And now the administration has launched an investigation.
Under President Joe Biden, the SEC, led by Chairman Gary Gensler, has stepped up its regulatory efforts, especially following the collapse of cryptocurrency exchange FTX in 2022. The SEC has brought numerous enforcement actions against exchanges and broker-dealers that failed to properly register under securities laws.
Gensler argues that most cryptocurrencies are securities and should be registered with the agency, a position that has led to several high-profile legal battles. While the SEC has settled some cases, lawsuits involving companies like Kraken Coinbase Global Inc. (COIN)And Binance is still tied up in court. The SEC has also closed some of its investigations, including one into Ethereum and another into BUSD, the Binance-branded cryptocurrency issued by New York-based Paxos.
“Remember, if Trump gets elected, the Republicans can immediately replace the chairman,” said Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School. “What that means in practice is that there are a lot of these instances where you have a lot of different decisions coming out like a shotgun, with a lot of different levels of quality, and that adds to the chaos, and it can all be resolved instead of moving forward.”
The GOP 16 page party platform Last week, he explicitly criticized the current administration’s approach to cryptocurrencies, saying, “Republicans will end the Democrats’ illegal and un-American crackdown on cryptocurrencies.”
As the election approaches, the cryptocurrency community remains optimistic that the Trump administration will be able to usher in a new era of regulatory clarity and support for digital assets.
Bitcoin Surges as Trump’s Election Chances Increase
Robert Kiyosaki, author of “Rich Dad Poor Dad,” said Bitcoin It could soar to $105,000 If Donald Trump wins the upcoming 2024 US presidential election, by August 2025, Trump’s pro-crypto stance could boost the prices of major cryptocurrencies, including Bitcoin and Ether, as well as other altcoins.
Additionally, regulatory clarity and support will open the way for more financial products, such as ETFs and derivatives, and further integrate cryptocurrencies into traditional financial markets.
Bitcoin traders also expect: In the short term, the price is expected to reach up to $70,000.This comes as positive sentiment spreads across the cryptocurrency sector ahead of the US presidential election and selling pressure from major wallets has eased.
“The Bitcoin price rally shows that the market is becoming more optimistic about the near-term macro environment,” Lucy Hu, senior analyst at Metalpha, told CoinDesk. “The market is also encouraged by Trump’s vice presidential nomination, which suggests a more crypto-friendly administration and policies.”
Lucy Hu added, “BTC could hover around the 120-day moving average and the price could go up to $68,000 or $70,000, but we need to continue to closely monitor the Fed’s policies and the impact of Mt Gox.”
“The shift in perspective towards the digital asset industry in the United States is creating expectations for more favorable policies for Bitcoin and cryptocurrencies as the election seeks to engage single-issue voters and special interest groups,” said Nick Ruck, Head of Growth at BitU Protocol.
“As Mt Gox distributes funds to its bondholders, the expected selling pressure in the long term will also lessen,” Ruck added.
conclusion
With his pro-crypto stance, a possible Trump victory in the 2024 US presidential election could bring about significant changes in the regulatory environment. A supportive regulatory environment could provide much-needed clarity to the crypto community, encouraging innovation and attracting more investors.
The SEC’s expected approval of an Ether ETF suggests that digital assets are increasingly being accepted in mainstream financial products such as 401(k)s, IRAs, and pension plans, paving the way for broader adoption.
With Trump’s favorable stance on cryptocurrencies and the potential for a more favorable regulatory environment, digital assets like Bitcoin and Ether could see significant upside in the short term. The potential shift underscores the importance of regulatory support in driving the growth and adoption of cryptocurrencies.