Bitcoin Gains Political Significance After Trump's Win

Bitcoin financial services firm NYDIG has acknowledged the increasing political significance of Bitcoin following Donald Trump’s re-election. On Monday, they released a report discussing potential regulatory changes for the cryptocurrency sector.

Trump's Impact on Regulatory Frameworks

In the report, NYDIG's Head of Research, Greg Cipolaro, examined how Trump's support for Bitcoin, including his proposal for a U.S. Bitcoin reserve, could lead to shifts in leadership at key regulatory bodies. This could result in reduced restrictions on digital assets.

“Last Tuesday’s election marked a historic turning point for the crypto industry as Republicans took control of the White House with Donald Trump’s victory, flipped the Senate, and likely hold their majority in the House. This consolidation of power by the GOP is a massive boost…”
— NYDIG (@NYDIG) November 11, 2024

The analysis highlighted Trump's advocacy for a U.S. Bitcoin reserve, indicating a potential pivot in federal policy towards cryptocurrencies. While the plan involves utilizing forfeited Bitcoins, it also recognizes possible legal challenges.

Cipolaro mentioned that Trump has also entered the NFT space with limited edition collections and is launching a decentralized finance (DeFi) project called World Liberty Financial.

Bitcoin Reaches New All-Time High of $84,000

NYDIG suggested that legislative initiatives like the Financial Innovation and Technology (FIT21) Act and regulations surrounding stablecoins may gain momentum under the new administration. Although immediate legislative actions may not be forthcoming, the report pointed out a trend towards regulatory openness.

Furthermore, the analysis indicated that the SEC might consider settlements or even dismiss certain cases against crypto companies such as Ripple Labs, Coinbase, and Binance. The Commission could also reevaluate Wells notices issued to firms like Uniswap, Consensys, and Crypto.com.

As of now, Bitcoin is trading at $84,045, reflecting a 5.35% increase in the last 24 hours and a 22.9% rise over the past week, according to CoinMarketCap.

Cipolaro emphasized, “While some investors have allocated to Bitcoin, the most common allocation for investors is still zero. 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.”