Bitcoin Is Becoming a ‘Political Imperative’ After Trump’s Win: NYDIG

(Crypto News)-13/11/2024

Bitcoin financial services and infrastructure firm NYDIG recognized Bitcoin’s growing political role after Donald Trump’s re-election, outlining potential regulatory changes for the crypto industry on Monday.

In a Monday report, NYDIG Head of Research Greg Cipolaro explained how Trump’s backing of Bitcoin, including his proposal for a Bitcoin reserve and anticipated leadership changes at key regulatory agencies, could strengthen digital assets’ position.

Trump’s Influence on Regulatory Agencies and Bitcoin

The analysis explored potential changes to leadership at agencies such as the Securities and Exchange Commission (SEC), the Options Clearing Corporation (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Treasury, which could reduce restrictions on digital assets.

NYDIG’s analysis highlighted Trump’s support for a proposed U.S. Bitcoin reserve, signaling a shift in federal policy towards digital assets.

The report noted that Trump’s plan includes using forfeited Bitcoins in a strategic reserve, though it acknowledged potential legal obstacles.

“Trump has also ventured into NFTs, selling limited edition collections, and is launching a DeFi project, World Liberty Financial,” said Cipolaro.

Bitcoin Hits New ATH of $84,000

NYDIG noted that legislative proposals, such as the Financial Innovation and Technology (FIT21) Act and stablecoin regulations, could gain traction under the new administration.

While immediate legislative action is unlikely, the report emphasized regulatory openness trends.

In addition, the analysis suggested that the SEC might pursue settlements or even drop certain cases against crypto firms, including Ripple Labs, Coinbase, and Binance.

The Commission could reconsider Wells notices issued to companies like Uniswap, Consensys, and Crypto.com.

According to CoinMarketCap, Bitcoin is currently trading at $84,045, marking a 5.35% increase within the past 24 hours and a 22.9% surge over the past week.

“While some investors have allocated to Bitcoin, the most common allocation for investors is still zero,” stated Cipolaro. “There are no excuses now. Not only is the asset available through easy-to-access, well-regulated products such as ETFs, but it is now becoming a political imperative.”