New Era for Cryptocurrencies Under Donald Trump’s Presidency

Cathy Yoon, general counsel at Wormhole Foundation, believes that Donald Trump’s inauguration as the 47th U.S. president marks the beginning of a new chapter for cryptocurrencies, including Bitcoin. Yoon’s comments, shared on January 17, suggest that Trump’s campaign pledges and selection of crypto advocates for key positions in his administration signal a major opportunity for the crypto industry.

Regulatory Environment and Crypto Industry

Yoon views Trump’s inauguration as a chance for the crypto industry to break free from the negative consequences of regulation-by-enforcement, a central grievance of the sector over the past four years. The U.S. Securities and Exchange Commission (SEC) and other government agencies have been at the forefront of this approach. However, Yoon believes that under Trump’s administration, crypto is unlikely to face the same regulatory environment.

Yoon highlighted that the new administration is expected to adopt a more collaborative and constructive approach towards the crypto industry. This is largely due to the presence of crypto-friendly figures in key positions, including Paul Atkins, who is set to lead the SEC.

“I am hopeful that the Trump administration will usher in a new age where crypto isn’t handicapped by the current regulation-by-enforcement regime of the current and recent SEC commissioners. Rather, the expectation is that conversations will more likely have the opportunity to be open and beneficial, as opposed to the defensive and guarded nature of recent years.”

Crypto Sentiment and Regulatory Clarity

According to Yoon, the top priority for the crypto industry is regulatory clarity. She believes that clear rules will bolster overall adoption of crypto services and products. Additionally, Yoon suggests that the industry may be able to rely on favorable no-action relief or perhaps even a regulatory sandbox to allow projects to develop and establish themselves while free from enforcement action.

Trump’s Pro-Crypto Administration

Trump’s pro-crypto administration is expected to include notable figures such as Elon Musk, Vivek Ramaswamy, and Howard Lutnick. Musk’s comments on crypto, particularly Bitcoin and Dogecoin, have helped catalyze the market. Meanwhile, Trump’s pick for Commerce Secretary, Lutnick, is the chief executive officer of Cantor Fitzgerald and has expressed his ownership of Bitcoin.

Tips for Crypto Investors

As the crypto industry enters a new era, investors can take the following steps:

  • Stay informed about regulatory developments and their potential impact on the crypto market.
  • Diversify your crypto portfolio to minimize risk.
  • Keep an eye on crypto-friendly policies and their potential effects on the market.

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