How Cryptos Are Becoming More Acceptable Due To American Politics?

The election of Donald Trump is making a huge difference in the world of cryptocurrencies. American politics was never so deeply involved with cryptocurrencies. The stance has changed because the influence of cryptocurrencies continues to grow. It frames public opinion, and campaign strategies and is now shaping legislation. The personal role of Donald Trump is also responsible for the growing optimism. It will have a ripple effect on white-label cryptocurrency exchanges, P2P crypto exchanges, and earned merchant payments. During his election campaign, he threatened to take action against the erstwhile SEC Chairman Gary Gensler. He also held closed-door meetings with pro-crypto personalities. He launched his meme coins almost immediately before becoming the President. Let us delve deeper into this topic as to why cryptos are becoming more acceptable.

Factors Behind The Growing Acceptance of Cryptocurrencies

There are several factors that are responsible for the growing acceptance of cryptocurrencies. However, it is undeniable that American politics today is one of those prominent factors.

• Crypto Policies of The Trump Administration

The crypto policies of the Trump administration are clear and in many ways unprecedented. The regime is actively making efforts to deal with the sector and is signaling a new outlook on digital assets. The administration favors lenient crypto policies to ensure that the sector witnessed rapid growth and widespread acceptance. The issuance of executive orders by Trump to prohibit the creation of CBDCs is an act that signifies the direct promotion of cryptocurrencies. Additionally, Donald Trump has publicly said many times that he wants to repay the US debt with cryptos and create a Bitcoin stockpile. 

• Recent Appointments of Pro-Crypto Figures

The link between the crypto industry and politics is very glaring now. Paul Atkins is now the newly appointed Commissioner of the SEC. He is famous for his pro-crypto views. The bonhomie between Elon Musk and Donald Trump is also making headlines. Musk is also well known for his DOGE coin and is vocally supportive of cryptocurrencies. The appointment of Howard Lutnick as the Secretary of Commerce is also vital. This is because he has deep ties with Tether, a popular stablecoin.

• Crypto Donations in Political Campaigns

This development is a new one. The influence of crypto enthusiasts on the Republican Party is glaringly evident now. The crypto industry already has contributed a record $119 million in the recently held Presidential elections. Trump took donations for his campaign in cryptos.  This implies that cryptocurrencies represent economic might. Even the Democratic Party supports crypto donations and is exploring its potential. Therefore, bipartisan support will help ordinary people to realize the shape of the future of finance.

Impact of American Politics on Crypto Policies Elsewhere

How American politics is encouraging the growth of cryptocurrencies, there is a high possibility that the same will happen elsewhere. In some places such as the EU, it is already happening. For example, the European Union’s MiCA framework is offering a regulatory model that can influence American policy. South Korea and Japan are also thinking of reforming the existing laws to encourage the usage of cryptocurrencies. The repercussions of American politics can lead to global changes. It can also lead to better integration of centralized and decentralized finance.

Conclusion

Cryptos are becoming more acceptable in the world owing to American politics. The American government right now is endorsing cryptocurrencies and framing policies accordingly. There is a high possibility that the crypto regulations will become more reasonable and less ambiguous to boost the prospects of the sector. Outside the US, especially in democratic countries, the implications can have visible consequences. Governments of other countries might modify their laws to adjust to the growing clout of cryptos. In the long run, this will cause a paradigm shift in the global financial order.