Even in the first week of Donald Trump back in the white house, there is already a significant payoff on the support that the crypto industry has given. Having spent millions in the 2024 presidential candidacy the policy changes are being welcomed by the executives and investors.
Trump issued an executive order to embrace the use of digital assets and lowered the regulatory strains on crypto companies, not to mention pardoning Ross Ulbricht whose impact as the founder of the Silk Road was controversial.
The executive order issued by Trump is a sure indication that his government would like to foster the crypto market. The order requests the collaboration of the Treasury, SEC and CFTC to research the strategies of digital assets. It also safeguards bitcoin miners and app developers, encourages U.S. supported stablecoins and prevents the development of a digital dollar.
Crypto supporters welcomed such developments since they were under attack under Biden. Coinbase CEO Brian Armstrong publicly criticized the former administration for causing confusion and punishing even law-abiding cryptocurrency businesses.
Among the most significant victories was the one of eliminating the SAB 121, which significantly undermined the custody of cryptocurrencies by banks. Without this rule big financial players such as Goldman Sachs and Morgan Stanley can now finally increase their crypto-related services.
Trump was also supportive of the sector in the way that he appointed some of the pro-crypto people such as Hester Peirce and Paul Atkins into essential positions. Legislation has been concerned by the possibility of self-enrichment and the likelihood of scams.
All in all, the early measures of Trump are pro-crypto and they have already increased confidence in the market. The cryptocurrency reached an all-time high of 109,000 bitcoins, and the crypto bosses are hopeful.
Nonetheless, it is constantly worrying to know the extent of this support, particularly on how the administration will strike a balance between regulation and growth.
