SAEDNEWS: For years, the cryptocurrency industry has been battling legal disputes and enforcement actions by the U.S. government. This industry is hopeful that the new Donald Trump administration, taking office on Monday, will bring positive policy changes.
According to SaedNews, given the presence of cryptocurrency supporters in the Trump administration and his emphasis on global competition, a period of relative support for this industry is likely ahead. However, regulation remains a sensitive and challenging issue.
Predictions about cryptocurrencies under the Trump administration depend on several key factors. Generally, it is expected that the new government will adopt a friendlier approach toward this technology.
Presence of Cryptocurrency Supporters in Key Positions: Trump has appointed individuals to key positions who have shown clear support for cryptocurrencies. For instance, the proposed Treasury Secretary has a positive view of Bitcoin, and David Sacks, responsible for AI and cryptocurrency, aims to develop a regulatory framework for this industry.
Efforts to Reduce Regulations: Paul Atkins, appointed as the head of the Securities and Exchange Commission (SEC), is known for supporting deregulation. This approach could reduce barriers for crypto companies and increase innovation in this field.
Strengthening Crypto-Related Infrastructure: Some of Trump's appointees, like J.D. Vance (Vice President) and companies associated with them, are working on infrastructure projects related to cryptocurrencies and blockchain. These activities may help shape the crypto economy.
Focus on Stablecoins and Their Role in the Economy: Given the close ties of some members of Trump's team with companies like Tether, stablecoins may play a more crucial role in financial and economic policies.
National security concerns that have caused restrictions in the past may still arise.
Disagreements may occur between supporters of deregulation and those concerned about financial risks and fraud.
Passing regulatory frameworks requires cooperation from Congress, which can be challenging.
Here is some information about the positions of key members of the new government and Trump's close circle regarding cryptocurrencies.
A billionaire chosen by Trump for the position of Treasury Secretary, has expressed a positive view of cryptocurrencies. He says, "Cryptocurrency means freedom, and the crypto economy is here to stay. I think everything is on the table, including Bitcoin."
Trump's choice for Commerce Secretary is a prominent supporter of Bitcoin. Lutnick, CEO of Cantor Fitzgerald brokerage in New York, earns fees from managing billions of dollars in U.S. Treasury securities for Tether (the stablecoin issuer). At the Bitcoin 2024 conference in July, he said, "Do I have Bitcoin? Of course, I do. Does Cantor Fitzgerald have Bitcoin? It has a lot."
The owner of Tesla and the world's richest man, chosen by Trump to head an institution called the "Department of Government Efficiency," has been a long-time advocate of cryptocurrencies, including Bitcoin and Dogecoin. Musk's public opinions and actions by his companies in recent years have influenced the prices of Bitcoin and Dogecoin. In 2021, Tesla purchased $1.5 billion worth of Bitcoin, becoming one of the largest corporate holders of cryptocurrency, although it later sold most of these assets.
The former CEO of PayPal was appointed in December as the head of AI and cryptocurrency at the White House. He is responsible for developing a U.S. regulatory framework for cryptocurrencies, which has long been requested by this industry. Sacks, a co-founder of the venture capital firm Craft Ventures, has invested in crypto companies, including BitGo and Bitwise.
