Trump’s first week in office: Will crypto regulation take a back seat?

6 hours ago 4

Crypto investors are increasingly optimistic as they await the inauguration of US President-elect Donald Trump on Jan. 20, anticipating more innovation-friendly regulations in the world’s largest economy.

Investors are also eagerly anticipating Paul Atkins as Trump’s pick for the new Securities and Exchange Commission chair.

While Trump has previously highlighted his intentions to bolster crypto innovation in the US, issuing regulatory frameworks takes time, according to Anastasija Plotnikova, co-founder and CEO of Fideum — a regulatory and blockchain infrastructure firm focused on institutions.

“Setting the right regulatory tone is crucial. […] The first week might not bring drastic changes, as meaningful and comprehensive legislation takes time,” Plotnikova told Cointelegraph.

Atkins — who will need to be confirmed by the Senate — has a history of advocating for more market-friendly regulations, which could benefit the cryptocurrency industry, Plotnikova said.

“I’m hopeful that Atkins and the new administration will take a balanced approach to foster innovation in the crypto space while ensuring proper oversight. It would be a great signal for the industry as a whole,” she said.

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Industry watchers also expect Trump to issue an executive order, potentially on day one, which would signal that he is making crypto policy a national priority.

Sources familiar with the matter expect the order to focus on fostering innovation by encouraging collaboration between regulators and industry participants, potentially creating a crypto council to advocate for the industry’s policy needs.

Trump’s crypto executive order: How soon?

Reports also suggest that Trump’s potential executive order may address crypto de-banking.

Dmitrij Radin, founder of Zekret and chief technology officer of Fideum, told Cointelegraph that while Trump may not issue a full executive order immediately, a positive crypto-related statement is likely:

“With Trump and Atkins in the mix, I'm pretty sure we’ll at least get some kind of statement from Trump on his first day, if not a full-on executive order. Trump likes to make a splash, and what better way than to show he’s the ‘crypto president’ he promised to be?”

“While expecting an immediate executive order is unlikely, an early sign of crypto policy would be an optimistic sign for the industry’s prospects,” Radin said. He added:

“If Trump does prioritize crypto on day one, it would likely be a high-level directive, something like establishing a task force or ordering an in-depth review of the regulatory landscape.”

Among the most anticipated bills likely to be taken up by Congress under the new administration is the BITCOIN Act — championed by Wyoming Senator Cynthia Lummis — which proposes the creation of a strategic Bitcoin (BTC) reserve for the world’s largest economy.

Bitcoin may eventually surpass the $1 million price tag if the BITCOIN Act is passed by US lawmakers, according to Adam Back, the co-founder and CEO of Blockstream, inventor of Hashcash and a noted cryptographer.

However, Bitcoin’s market capitalization would need to attract another $2 trillion worth of capital to surpass the $200,000 mark alone, which would see BTC surpass Apple’s $3.7 trillion market cap to become the world’s second-largest asset.