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

Bitcoin Donald Trump SEC

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Share

Copied

Last updated:

November 11, 2024 13:11 EST

Why Trust Cryptonews

For over a decade, Cryptonews has covered the cryptocurrency industry, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.

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.”