The Noteworthy Changes In The Cryptocurrency Market And Its Ramifications

Donald Trump has made history in the politics of the US. He is one of the rare Presidents who fought three elections and won two but not consecutively. Within a week of his return to the White House, President Trump brought about significant changes in the cryptocurrency industry. These changes will not only affect the crypto users but will have worldwide ramifications. The ramifications nevertheless are expected to be mostly positive and can have an impact on cryptocurrency exchanges, portfolio management systems, and asset management solutions in the cryptocurrency market.

Impact of Executive Orders on The Cryptocurrency Market 

During the beginning of the second term, Donald Trump attempted to fulfill his crypto promises. He signed a Presidential executive order on financial technology and digital assets. It will examine the present crypto regulations, and make recommendations. This can have widespread implications elsewhere since cryptos are transnational by nature. Moreover, these orders may lead to the setting up of a Bitcoin strategic reserve. The most notable consequence of the executive order was that it prevented the creation of central bank digital currency. 

SEC Becomes Lenient Towards Crypto

Donald Trump during his Presidential campaigns highlighted the importance of regulatory leniency to boost the growth of the crypto industry. He was bitterly critical of former SEC chairman Gary Gensler and alleged that he was responsible for stifling the growth of the crypto industry by taking strict actions against new crypto users. Within moments before Trump’s inauguration, Gensler stepped down. Donald Trump appointed Paul Atkins who is known for his pro-crypto views. 

There are also reports that Mark Uyeda the acting chief of SEC has already established a new Crypto Task Force. The SEC will encourage better clarity for the crypto industry. The SEC also has overturned an accounting rule that prevents traditional banks and financial institutions from dealing or acting as custodians for crypto assets. This step alone can have widespread implications for the entire cryptocurrency market.

The Image of A Crypto-Friendly Administration

The US is a politically important country for global politics and global finance. Therefore, it would be unwise to assume that the rapid changes in the American government’s crypto policies will not have any impact elsewhere. The current US administration under Trump is openly advocating for cryptocurrencies. This shift in policies is indeed unparalleled. The SEC is receiving new applications related to crypto ETFs. There are already many applications for Solana, Ripple, and Litecoin. Similarly, many enthusiasts are buying meme coins too including those launched by Donald Trump and his wife Melania. 

Creation of Groups For Crypto Regulations

Donald Trump has issued executive orders for the formation of dedicated groups to ease crypto regulations. The group will shape regulations, monitor transactions, and help the White House frame a comprehensive policy around decentralized finance. The current crypto regulatory framework will also work for the maintenance of a digital asset stockpile. This is especially significant since it signals state sponsorship of cryptocurrencies. The group is also working towards the endorsement and safeguarding of stablecoins in the world. It is responsible for prohibiting the creation of CBDCs in the US.  

Conclusion

The changes in the crypto industry undoubtedly will have ramifications on every aspect of life. It will surely transform the global economy as we know it. The ongoing policies however will also have an impact on the way we deal with fiat currencies. The US government’s decision to prohibit digital currencies and encourage cryptos implies an attempt to bridge the divide between centralized and decentralized finance. The lenient crypto policies under Trump are going to have a positive impact on the users, companies, and traders too. Many risk-averse investors will start adopting cryptos and create more systems to ensure that they benefit the masses.