As Donald Trump's inauguration approaches with promises of crypto regulation reform, expectations for changes have emerged. However, NYDIG experts believe these changes won't be immediate.
Plans to Reform Crypto Regulation
NYDIG's Greg Cipolaro cautions against expecting immediate changes to crypto regulation with the Trump administration's arrival. While many promises could happen swiftly, others might take more time. For instance, the passing of the FIT21 bill and stablecoin legislation could be delayed, as the new conservative legislature may be less willing to compromise.
Key Appointments
Trump's picks for the Treasury, the Securities and Exchange Commission, and a digital assets adviser appear favorable for the crypto market. However, appointments to key agencies such as the Commodity Futures Trading Commission, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are still unknown.
Impact on Strategic Decisions
One potential change that could occur quickly via executive order is the creation of a strategic Bitcoin reserve. At present, a draft of such an order is already circulating on social media. However, such an order could be less permanent as it could be revoked by the next president. A possible strategic reserve could be formed from the $18.3 billion of confiscated cryptocurrencies.
While Trump's inauguration raises questions about potential changes in crypto regulation, experts caution that expectations should be tempered. Many initiatives require time and approvals at all levels of government.
