Crypto Industry Could Witness A New Era Under Donald Trump’s Presidency

Donald Trump is sworn in as the 47th US President and already the crypto industry is celebrating. The reason behind their jubilance is that Trump has made many promises during his election campaign. In his bid to enthuse crypto users, he publicly stated that he would declare Bitcoin a strategic reserve. A few days before his formal inauguration, Trump and his wife Melania launched their two meme coins, $TRUMP and $MELANIA. Many experts and analysts believe that this was a positive move, as it signals that the President is genuinely interested in boosting the crypto industry. If his regime favors cryptocurrency, it is good news for white-label cryptocurrency exchanges such as PayBitoPro.

Anticipated Pro-Crypto Policies of Donald Trump

Many experts and enthusiasts anticipate that Donald Trump will revolutionize the crypto sector and will make it easier for people to trade with less legal hassles.

• The administration may review the supervisory powers of the SEC and CFTC to ensure that genuine cryptocurrency users are not harassed and get speedy approvals for crypto products such as ETPs.
• Promote blockchain research and development projects to improve US competitiveness in the digital economy.
• Have a clear and standard cryptocurrency regulation to reduce jurisdictional and legal issues and encourage more investments.
• Tax rebates and incentives for crypto mining operations may boost growth and acceptance for the crypto industry.

Economic Policies May Positively Affect Bitcoin

Donald Trump is known for implementing protectionist measures to keep his vote bank satisfied. Fiscal stimulus and prolonged trade negotiations directly influence his economic policy. There are genuine concerns surrounding inflation and the rapid devaluation of the American dollar. This is perhaps one of the main reasons why Trump eagerly wants to promote Bitcoin as a hedge against inflation. 

The economic policies of Donald Trump’s Presidency can be a game changer for the energy industry. He opposes strict regulations and wants fracking to continue. He also wants to reduce the operational costs of the administration, reduce the costs of mining operations, and consolidate the country’s position in mining. Therefore, crypto mining can become a lucrative economic activity during his tenure. 

Bitcoin As The Strategic Reserve

During his election campaign, Donald made headlines after he announced that he would declare Bitcoin as a strategic reserve. Some say that there is a high possibility that he will indeed do that. Many crypto enthusiasts argue that it can lead to a strategic reserve asset similar to gold. Although gold is fundamentally different from Bitcoin, the anti-inflationary hedge is a common feature of both. The plan is an ambitious one and disrupts the global financial system, there are potential geo-political and logistical challenges of declaring Bitcoin as a reserve.

Changes in Crypto Investment Strategies 

Trump’s Presidency may lead to systematic changes in the manner investors invest in crypto. Since people expect him to liberalize regulations and protect the interests of investors, it can cause a paradigm shift in the future of cryptos. The main changes that will follow include:

• Tracking mining sentiment will become more common than before. It will lead to further popularization of monitoring indices such as app ranking, institutional inflows, search trends, and other details into the market dynamics.
• Protection against volatility will also improve if Bitcoin maintains a diverse investment portfolio and mitigates risks.
• Crypto mining will substantially increase because Trump may implement favorable energy policies and encourage more mining operations of cryptocurrencies like Bitcoin.
• The regulations and laws related to digital assets may undergo substantial changes. It is necessary to devise strategies accordingly. This will help better optimization and compliance. 

Future of Crypto Industry under Donald Trump

In his first term as the US President (2017-2021), Donald Trump was critical and dismissive of cryptocurrencies. However, since then his views have changed considerably. Now he has become a vocal supporter and wants to promote cryptocurrencies. In his election campaign, Donald Trump wants the United States to become the crypto capital of the world. His current actions indicate that he eagerly wants sound and clear crypto regulations. It is also worth noting that his business family has stakes in World Liberty Financial which endorses cryptocurrencies too. 

Donald Trump has appointed Paul Atkins as the former US Securities and Exchange Commissioner to lead the SEC. Atkins is publicly known for his pro-crypto stance and opposes enforcement actions of the SEC against crypto firms. Trump also appointed David Sacks, a venture capitalist to oversee America’s first crypto and AI czar. During his campaign, he held closed-door meetings with many cryptocurrency enthusiasts and entrepreneurs.

However, he may face considerable opposition from the Democrats-led US Congress for political reasons. If the US Congress remains under the control of the Republican party, then he may find it smoother to carry out crypto reforms. To bolster the industry, French Hill, the chair of the House Financial Services wants to develop crypto during the regime of Trump.

Although Donald Trump can sign executive orders and directives to boost the growth of cryptocurrency right from the first day of his presidency, there are many multiple challenges. The expansion of cryptos requires a proper blueprint and a roadmap. It will require negotiations, brainstorming, and consultations with financial and legal experts. Trump is also aware that many of his political opponents have a vested interest in suppressing innovations in the crypto industry. This is because the structure and issuance of fiat currency benefits many of them. There are varying opinions on whether Trump needs the US Congress’s support to bolster the industry or whether he alone as the President can create a crypto stockpile through executive orders.

The positive aspect of Donald Trump’s policies on cryptocurrencies is that he publicly stated that he will not allow private banks to stifle crypto firms by discriminating against them in the traditional financial system. By easing regulations and restrictions, his regime can build bridges between the two systems. The growth of stablecoins is one such hopeful indication. If his regime creates a crypto council, then the industry can have fair access to banking services. 

Bottom Line

There is no shred of doubt right now that Donald Trump as the 47th US President is committed to changing the crypto industry forever. The stunning performance of Bitcoin and the growing enthusiasm for decentralized finance is also no coincidence. It is reasonable to believe and expect that Trump’s Presidency will usher in crypto regulations to reduce legal ambiguities, protect genuine investors, and boost growth and innovation. Although challenges persist, the recent spurt in the prices of Bitcoin and other altcoins generates hope. Therefore, it is reasonable to anticipate that the entire cryptocurrency industry will undergo changes that will disrupt the existing financial order.