What Trump can bring for crypto

International climate protectors, German business bosses and European NATO partners are not in a party mood in terms of celebration, but an industry is currently celebrating a big party: the crypto sector. With the choice of Donald Trump as the 47th US president, the prices of crypto-assets have been in a happy expectation of what may come.

Bitcoin has exceeded $ 80,000, Elon Musk's favorite coin Dogecoin almost doubled within the last week, other tokens such as Ada (Cardano, Solana), Shiba Inu or Sui rose strongly. Overall, the crypto market has increased $ 560 billion since the day of the US election. Bitcoin, but also for old coins.

Because the bank crypto supporter expect benevolent legislation for the crypto market that is still not really clearly regulated in the United States. Trump had also focused on the topic in the election campaign and even proclaimed the next crypto president; Not inconsiderable campaign donations also came from the corner, for example from the Winklevoss twins that operate the Gemini crypto exchange.

But what could Trump plan specifically for crypto-assets in the enormously important US market? Nothing is yet carved in stone, but the following initiatives and steps can be expected:

Nationale Bitcoin-Reserve

Trump had taken up the idea of a national Bitcoin reserve in the election campaign. His communicated proposal provides for a million Bitcoin (approx. 5% of all available Bitcoin) for a state reserve. Basically, this would mean to raise BTC as a supplement to traditional reserves to the same status as gold. Currently, one million BTC would be around $ 80 billion. In view of those 8,000 tons of gold on which the USA sit (approx. $ 700 billion), a rather smaller amount, but not insignificant.

In addition to the diversification, Bitcoin would give the United States the potential to add more in value – the purchase of such rustic amounts of BTC alone would be a signal that could chase the price upwards, and the USA would benefit directly. Conversely, Bitcoin is very very volatile and not a stable value such as gold. So the United States could lose a lot if BTC crashes down again in the next cycle.

SEC boss Gary Gensler is replaced

Gary Gensler was proposed in 2020 by the still incumbent US President Joe Biden as head of the powerful US stock exchange supervision SEC and then took up this office in 2021. Since then he has broken a real war from the authority against crypto companies from the fence. The fundamental assumption of Gensler is that all tokens except Bitcoin are actually securities – and would therefore fall under the US's laws of securities. The SEC has sued the following crypto companies in recent years:

Coinbase
Binance
Kraken
BlockFi
Unswap Labs
Ripple
Nexus
Telegram
Kik
Crypto.com

Responsibility could hike to the CFTC

After the SEC left a lot of burned earth under Gensler (most recently complained of Crypto.com the US stock exchange supervision) there are hopes in the sector that the SEC is moving from the SEC to the smaller authority Commodity Futures Trading Commission (CFTC). So far, the CFTC has driven a softer course compared to crypto-assets, and if it were ultimately responsible for the topic, then the big basic question of whether Ethereum and many other tokens are actually securities.

A gentle version of the mica

In the EU, the crypto law Mica was decided that, primarily a reaction to itself, establishing stable coins, especially Mark Zuckerberg's failed Libra/Diem project, can be seen as a reaction to itself several years ago. Among other things, it also defines which companies can offer or not stable coins like Tether (USDT) under which conditions on the European market.

Trump or his family environment have already shown the Defi project World Liberty Financial that dollar stall coins are particularly on their heart-so you can expect that there will be corresponding rules for this in the United States so that they will continue to flourish. It will be important in the United States that the big question “What is a security token?” is clarified.

Lots of wishes and speculation

The fact that Trump was very crypto-friendly in the election campaign is of course also calculated. Depending on the survey that you believe, between 8 and 16 percent of the Americans have already bought cryptocurrencies-these are dozens of millions of voters: inside that Trump could address.

The bid administration stood, and we come back to second boss Gary Gensler, the consumer protection for cryptocurrencies in focus. No wonder, after all, in 2022 both Terra/Luna and FTX collapsed-afterwards Gensler passed the crypto industry with one lawsuit after the other.

Under Trump, consumers are less in focus than the companies are in focus. There is already speculation that it will then be easier to bring new crypto ETFs or crypto companies to the stock exchanges, or that there could even be tax reliefs and grants for crypto companies. But all of this remains to be seen.