As President-elect Donald Trump prepares to assume office on January 20, there is growing anticipation regarding how his administration will influence the cryptocurrency sector.
Ron Hammond, Director of Government Relations at the Blockchain Association, has shared insights on what to expect from the new administration and its legislative agenda related to digital assets.
Trump’s Crypto Regulatory Strategy
In a recent social media update, Hammond emphasized the importance of personnel in shaping the administration’s approach to crypto. While Trump has publicly endorsed pro-crypto policies, the real impact will depend on the appointments of key agency heads and staff.
Positions at the Securities and Exchange Commission (SEC), banking regulators, and the Commodity Futures Trading Commission (CFTC) are still to be filled, and announcements are expected imminently.
However, Scott Bessent, a billionaire hedge fund manager and Trump’s leading candidate for Treasury Secretary, has expressed strong support for digital assets, particularly Bitcoin.
As reported by FOX journalist Eleanor Terret, Bessent’s pro-crypto stance aligns closely with Trump’s broader vision for a more permissive regulatory environment regarding cryptocurrencies.
Despite these advancements, Hammond cautioned that while there are many rumored candidates favorable to the crypto industry, it is essential to wait for official confirmations before drawing conclusions.
Trump has also indicated plans to create a dedicated role for cryptocurrency within the White House or establish an advisory council, a significant move that would institutionalize a focus on digital assets at the highest levels of government.
This would mark a departure from previous administrations, where cryptocurrency-related issues were often managed alongside broader policy areas. The early appointments to these positions will likely have a lasting impact on the administration’s strategy.
Challenges Ahead
Hammond also highlighted in his analysis that the crypto industry faces a multitude of challenges, including issues related to taxation, mining regulations, stablecoins, market structure and decentralized finance (DeFi).
The expert believes that addressing these complexities in a limited timeframe will be challenging. While some issues can be addressed through executive orders or changes in agency leadership, others, particularly those requiring legislative action, may take more time to resolve.
Hammond also noted that the current Congress is still active, with ongoing discussions about cryptocurrency legislation. Bipartisan progress has been made on stablecoin regulation and market structure, although significant hurdles remain.
The lame-duck session presents a final opportunity for lawmakers to reach agreements before the new session begins. Despite expectations that Republicans may delay major legislation until they have full control in 2025, Hammond suggests that there remains potential for bipartisan initiatives in the coming weeks.
Overall, while the exact outcomes of the remaining weeks in the current session are uncertain, the anticipation for a more pro-crypto Congress next year is palpable among investors.
As the new Trump administration takes shape, many in the digital asset industry are hopeful that the new leadership will facilitate a clearer regulatory framework and foster innovation within the sector.
Featured image from DALL-E, chart from TradingView.com
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments