After years of regulatory “harassment” under the Biden administration, the crypto community celebrated Donald Trump's inauguration as an end to four years of “terrorism,” as one prominent investor described it to NYNext. It heralds a major policy shift aimed at legitimizing regulation. industry.
This change comes in addition to the appointment of crypto-friendly officials like David Sachs as AI and crypto czar and the appointment of Paul Atkins as SEC chairman, as well as the Marked by the promise of an executive order on day one to create and end bank account abolition.
“The entire market is relieved…there has been a dramatic shift in the approach and tone of governments and regulators,” said Tom, an early Bitcoin investor and director of special projects at crypto news site The Block. said one Frank Chaparro. “What this essentially means is that banks will now be able to touch cryptocurrencies, something banks have been told for the past four years that they can't.”
Sources say simply stopping debunking or refusing to work with customers because of their ties to cryptocurrencies could be enough to help the industry thrive.
Nick Carter, a crypto investor at Castle Island Ventures who sounded the alarm on Biden's debanking efforts, told New York Next that “all banks that deal in cryptocurrencies have faced regulatory harassment.” .
Carter has referred to Biden's so-called debanking efforts as “Operation Chokepoint 2.0,” a reference to the Obama administration's Operation Chokepoint, which was aimed at cracking down on illegal activities such as drug sales. However, he ended up pursuing legitimate businesses such as gun dealers.
Under the Biden administration, banks were told by FDIC (Federal Deposit Insurance Corporation) regulators not to work with crypto companies, which put the industry at a disadvantage. Venture capitalist Marc Andreessen described the administration's actions as “terrifying” startups, saying in an interview with Joe Rogan last month that banks would stop banking 30 startups he had invested in. He said he was asked to do so.
“This is a privatized sanctions regime,” Andreessen said.
“Banks never tell you why they're canceling your bank account,” Carter added. “They may communicate verbally that there is a reputational risk, but the conversation is very vague.”
This situation has resulted in crypto startups moving offshore or not launching in the first place.
With that change alone, Carter predicts a renaissance for cryptocurrency startups. “Every startup that leaves comes back. [to the US] …This was the thing that crypto people wanted to change the most. ”
And there are already some early signs of that happening, the source added.
Dennis Dinkelmeyer, founder and CEO of European-based crypto investment firm Midas, told NYNext that the company is considering launching in the U.S. this year.
“Founders across the market are considering returning to or expanding into the U.S. for the first time in four years,” Dinkelmeyer said. “Excitement is coming back and we can see that in recent news of big projects like TON. [Midas’ crypto bank on the blockchain] This will be the company's first foray into the U.S. market. ”
During the Biden administration, Biden appointed officials who sought to police the industry and passed legislation that made it difficult for traditional institutions to own cryptocurrencies. Lawmakers and regulators saw the still highly speculative industry as something to be reined in rather than cautiously allowed to grow, the people said.
They acknowledge the risks involved, but at least want rules that would allow crypto companies to operate and grow in the United States.
On Friday, Sachs will host the first-ever Crypto Ball in Washington, D.C., kicking off a weekend of celebrations ahead of President Trump's inauguration on January 20th. Tickets for the black tie event range from $2,500 (already sold out) to $1. The $1 million prize includes a private dinner with the president-elect, and sponsors include Coinbase, Solana, MicroStrategy, Kraken, and Galaxy Digital.
Anthony Pompliano, founder and CEO of Professional Capital Management, believes that the Trump administration will delve into the regulatory details in the coming months and will change accounting rules to make it easier to trade in Bitcoin. He explains that he is optimistic that changes will be made.
While many in the crypto community support President Trump's expected pro-crypto executive order, one idea is causing more controversy. It's the idea of a US-first strategic reserve that prioritizes US-created digital coins like Solana. , USD coin and Ripple.
President Trump has been meeting with the founders of these coins in recent weeks and has welcomed the idea, the people said.
Insiders, who spoke on condition of anonymity, shared concerns that efforts to promote Bitcoin, an asset they want to prioritize, could be outlawed.
But officials also said these rifts will postpone what they believe will be a golden age for cryptocurrencies.
One of Chaparro believes that Trump has already set a new tone for the industry, saying, “This is a fundamental change. America is very much back in business for crypto founders.” There is.
This article is part of a new editorial series called NYNext, which focuses on innovation across various industries in New York City and the people leading the way.
