Regulation
EXCLUSIVE: Will Trump’s possible return to power cause Bitcoin and Ethereum to explode or collapse? Experts weigh in on the regulatory future of cryptocurrencies
Former president Donald Trump’s continued adoption of cryptocurrencies has galvanized supporters of the asset class like never before, and many have been won over by the industry leader’s big promises if he returns to office.
However, a noisy election campaign and the introduction of concrete policy changes necessary for the sustained growth of the digital asset ecosystem could be two very different things.
To quell the rumors, Benzinga spoke to experts to understand the potential changes the industry can expect if Trump returns to the White House again.
What can we expect?
Oliver Lynch, CEO of cryptocurrency exchange Bittrex Globalinvolved changes in key personnel of the Securities and Exchange Commission (SEC), as part of Trump’s efforts to align the regulator with his new cryptocurrency-friendly policies.
“Even before an actual victory, key SEC personnel could — if a Trump victory seems likely — begin to pivot in anticipation of such a shift,” Lynch said.
That said, he doubts such changes would be “instant,” as filling commissioner positions will take time due to Senate confirmation.
Legal expert James L. Koutoulas from Koutoulas Law, LLC made a bolder prediction. He said the easiest thing for Trump to do once he takes office is to fire the current SEC chairman Gary Gensler and replace him with the Commissioner Hester Peirce, appointed by Trump in 2018.
“Ms Peirce was one of the key thought leaders for implementing rational transition policies from a pioneering unregulated market to a regulated one,” Koutoulas said.
Kadan Stadelmann, CTO at Komodo, believes Trump will sign the executive orders. “Among them, one or more could bring specific benefits to the cryptocurrency industry. Subsequently, it could encourage Congress to work to pass a comprehensive bill on the cryptocurrency industry,” Stadelmann said.
Resistance the Trump way
Nearly all of Benzinga’s analysts have reached out to point out significant political bottlenecks in Trump’s pursuit of cryptocurrency liberalization policies.
Kadan Stadelmann called the US Senate “the biggest potential point of resistance”, where Democrats they currently hold the majority by a small margin.
James Koutoulas was more specific, finding the senator’s strong opposition Elizabeth Warren (D-MA) as one of Trump’s biggest challenges.
Interestingly, Trump aggressively targeted Warren in one of his last campaign speeches, saying, “I will keep Elizabeth Warren and her minions away from yours Bitcoin (CRYPTO: Bitcoin).”
Warren was engaged in a high-stakes battle for Massachusetts against the pro-bonos XRP (CRYPTO: XRP) lawyer John Deaton.
What does the Future estate?
Lynch noted that given the circumstances, a Republican administration is likely to make more overtures in favor of cryptocurrencies Trump’s speeches appealed to hotter narratives like NFTs, DeFi, and self-custody.
With more focus on this decentralized and privatized aspect of cryptocurrencies, we would likely see the scrapping of any potential CBDC projects,” Lynch predicted.
Trump’s office did not immediately respond to Benzinga’s request for comment.
On-chain analytics platform Glassnode you already see Bitcoin consolidation near its all-time high e Ethereum (CRYPTO: ET) The ETF-induced surge is a promising sign of strength.
These insights set the stage for more in-depth discussions next time Benzinga The future of digital assets event on November 19th.
Read next: NFTs are vulnerable to fraud and scams, says US Treasury – Calls for tougher regulations
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