Bitcoin has hit a series of record highs since President-elect Donald Trump's election victory as the crypto industry anticipates a major shift in federal policy.
This week, the price of one Bitcoin approaches $100,000. Increased by more than 40% Trump has become the most pro-cryptocurrency president since his re-election, pledging to make the United States the “crypto capital of the planet.”
With the expected retirement of Securities and Exchange Commission Chairman Gary Gensler and President Trump's Cabinet reshuffle, crypto investors see greener pastures awaiting in a polarized industry. The excitement is growing even more.
“At least the new administration is going to encourage productive engagement with regulators,” said Katherine Kirkpatrick Boss, general counsel at encryption software company Starkware. “Over the past four years, there has been little to no productive engagement between cryptocurrencies and the SEC.”
“It was very belligerent. The sense that there will be productive discussions around these core legal issues is now very exciting among institutional investors, and they are even more willing to engage in crypto assets. “I'm doing it,” she added.
The crypto community's embrace of Trump's victory appeared almost immediately in the market. Bitcoin soared 8% the day after the election, sparking a multi-day rally that hit an all-time high of more than $98,700 last Friday.
Bitcoin started to slip It rallied back toward $90,000 earlier this week, with other small-cap crypto stocks also falling. Still, observers told The Hill they are confident the rally will continue, with one analyst calling the market “structurally sound.”
Despite being skeptical of digital currencies in the past, President Trump has returned to the White House and is surrounded by voices of support for cryptocurrencies, increasing his confidence in the industry.
The president-elect last week nominated billionaire investor Scott Bessent to head the Treasury Department. Bessent, founder and CEO of hedge fund Key Square Group, is known as a supporter of digital assets.
calling him “Perfect choice” Brad Garlinghouse, CEO of crypto firm Ripple, said Bessent will be “the most pro-innovation, pro-crypto Treasury Department we've ever seen.”
The enthusiasm increased even further In the midst of news coverage Trump's transition team is considering creating a White House staff position dedicated to crypto policy or a “crypto czar” to oversee policy and regulation.
“Most of us have been trying to build the next generation financial system and the next internet in the United States,” Faryal Shirzad, chief policy officer at cryptocurrency exchange Coinbase, told The Hill. Ta. “And we've had a very difficult time doing that because of the lack of regulatory clarity. And now we've got an administration and Congress coming in and they understand the potential of the technology. Masu.”
Coinbase has played a central role in driving industry political engagement this election cycle, piling $70.5 million into the Fairshake super PAC. Federal Election Commission data.
As the Trump administration's cabinet reaches capacity, speculation is swirling about who will be named SEC chairman after Gensler's resignation. The crypto industry has repeatedly clashed with Gensler and the Biden administration over Washington's critical approach to cryptocurrencies.
Names that have been floated as SEC chairs include former Acting Comptroller of the Currency Brian Brooks, former SEC Chairman Paul Atkins, and former SEC General Counsel Robert Stebbins. Axios reported.
The last four years have been “regulation by enforcement,” Nathan McCauley, co-founder and CEO of cryptocurrency platform Anchorage Digital, told The Hill, adding that the next administration is “regulating by rulemaking.” He added that he hoped to bring about “regulations.”
Many in the industry want a more specific regulatory framework, including new laws that address the unique aspects of the asset class, and say they believe new leadership will bring about change.
“There are a lot of things that don't fit with our current structure,” Voss said.
“The most basic thing a new chair can do is demonstrate a commitment to providing the transparency that the industry is looking for,” Shirzad added.
Congressional leaders appear to be following President Trump's crypto-friendly stance.
Sen. Cynthia Lummis (R-Wyo.) told the Washington Examiner last week that she plans to reintroduce Bitcoin legislation in the next session.
The bill was first introduced last summer, but there was no movement. Strategic Bitcoin Reserve In that case, the United States would purchase large amounts of virtual currency and hold it as reserves.
Lummis told the Examiner that the push is “gaining momentum” to fight inflation and limit further dollar weakness.
President Trump has signaled he is open to preparing for cryptocurrencies, promising at a Bitcoin conference in July that the federal government will keep “100 percent” of Bitcoin in the United States and guarantee that it will not sell any of its Bitcoin holdings. did.
It remains to be seen whether Lummis' bill will pass the Senate, but the industry remains optimistic, especially given the change in Senate leadership.
The changes include Senate Banking Committee Chairman Sherrod Brown (D-Ohio), who lost this fall's election to Sen. Bernie Moreno (R-Ohio).
Moreno emphasized a pro-crypto approach, in contrast to Brown, who opposes legislation aimed at clarifying federal regulations for the industry.
Expectations are even higher as Sen. Tim Scott (RS.C.) is also considered a strong supporter of cryptocurrencies and is expected to lead the Banking Committee.
at a lecture Mr. Scott met with Mr. Lummis last August and promised to ensure that the United States has rules and regulations that “promote innovation, protect consumers, and preserve opportunity.”
But the South Carolina Republican is set to become a ranking member of the Banking Committee, along with Sen. Elizabeth Warren, who has repeatedly pressed regulators to take a tougher stance on crypto trading. It could face opposition from Rep. (D-Mass.).
Interest in cryptocurrencies is seen across party lines and is causing a shift in some lawmakers who were once cautious when discussing the cryptocurrency industry in the wake of the collapse of FTX and its founder.
“After the election, a lot of Democrats want to talk, they want to understand, they want to be part of this effort,” said Chen Arad, co-founder of Solidius Labs, a cryptocurrency security and compliance hub.
“This is bigger than any political party right now, so we're finally moving in that direction somehow because the election shows that this is important to Americans.”
Solidius Lab founded the Crypto Market Integrity Coalition (CMIC) in 2022, a cohort of 55 crypto institutions including Coinbase and Robinhood.
The Union is laid out He made policy recommendations in a letter to Congressional leaders. Their proposals include establishing a national framework for stablecoins, a type of virtual currency tied to a fixed value, and a market structure that more clearly defines the different powers of the SEC and the Commodity Futures Trading Commission (CFTC). Bill included.
The House of Representatives passed the Financial Innovation and Technology Act of 2021.cent The Century Act (FIT 21), enacted earlier this year, would have done just that, but it was not taken up by the Senate.
