Crypto investors are growing increasingly optimistic as they await the inauguration of US President-elect Donald Trump on January 20, anticipating more innovation-friendly regulations in the world’s largest economy.
Investors are also eagerly awaiting Paul Atkins to be Trump’s choice for the new chairman of the Securities and Exchange Commission.
While Trump has already outlined his intention to boost crypto innovation in the United States, putting regulatory frameworks in place takes time, according to Anastasija Plotnikova, co-founder and CEO of Fideum, a regulatory infrastructure company and institution-focused blockchain.
“It is crucial to set the right regulatory tone. (…) The first week may not bring radical changes, because meaningful and comprehensive legislation takes time,” Plotnikova told Cointelegraph.
Atkins – who will need to be confirmed by the Senate – has consistently advocated for more market-friendly regulations, which could benefit the cryptocurrency sector, Plotnikova said.
“I hope that Atkins and the new administration will take a balanced approach to fostering innovation in crypto while providing appropriate oversight. This would be a great signal for the industry as a whole,” she said.
Industry observers also expect Trump to issue an executive order, potentially on day one, that would signal that he is making crypto policy a national priority.
Sources familiar with the matter expect the order to focus on promoting innovation by encouraging collaboration between regulators and industry players, potentially creating a crypto council to advocate for the policy needs of the industry.
Trump’s crypto executive order: how soon?
Reports also suggest that Trump’s potential executive order could address the debanking of cryptocurrencies.
Dmitrij Radin, founder of Zekret and CTO of Fideum, told Cointelegraph that while Trump might not immediately issue a full executive order, a positive crypto-related statement is likely:
“With Trump and Atkins in the mix, I’m pretty sure we’ll get at least some sort of statement from Trump on his first day, if not a full executive order. Trump loves to make a splash, and what better way than to show that he is the “crypto president” he promised to be?
“While an executive order is unlikely to be passed immediately, an early sign of a crypto policy would be an optimistic sign for the industry’s prospects,” Radin said. He added:
“If Trump prioritizes crypto from day one, it would likely be a high-level directive, such as creating a task force or ordering a thorough review of the regulatory landscape.”
Among the most anticipated bills likely to pass Congress under the new administration is the BITCOIN Act – championed by Wyoming Senator Cynthia Lummis – which proposes the creation of a strategic reserve of Bitcoin (BTC) for the largest economy in the world.
Bitcoin could eventually surpass the $1 million price tag if the BITCOIN Act is passed by U.S. lawmakers, according to Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash and noted cryptographer.
However, Bitcoin’s market cap would need to attract an additional $2 trillion in capital to surpass the $200,000 mark alone, which would allow BTC to surpass Apple’s $3.7 trillion market cap to become the second largest asset in the world.
