Cryptocurrency research firm Bernstein has released a new analysis predicting a major shift in the digital asset market as the Trump administration eases regulatory restrictions.
Regulatory Easing and Its Impact
According to the report, the previous crackdown on utility tokens and NFT projects forced the crypto industry to rely on 'useless' memecoins. However, with a more relaxed regulatory environment, analysts expect liquidity to return to utility-focused sectors such as decentralized finance (DeFi), GameFi, and NFTs.
Role of Paul Atkins and the SEC
The report notes that Paul Atkins, a pro-crypto regulator nominated by Trump, is expected to be appointed to head the U.S. Securities and Exchange Commission (SEC). If confirmed by the Senate, Atkins is expected to lead a new crypto task force under Republican Commissioner Hester Peirce. Bernstein analysts point to recent policy changes, including the SEC’s decision to drop securities violation charges against Coinbase and end its investigation into OpenSea, as clear indicators of a changing regulatory stance.
Bitcoin Predictions and Institutional Involvement
Bernstein remains bullish on Bitcoin, citing the continued inflow of ETF funds and institutional adoption as key drivers of the price rally. The report maintains its year-end target for Bitcoin at $200,000 despite recent market declines.
Thus, Bernstein's analysis shows that regulatory easing could lead to significant changes in the crypto market, creating new opportunities across various sectors.
