The Future of Cryptocurrency in Trump's Hands: What Changes Could Happen on the First Day?

The return of Donald Trump to the White House on January 20 will open up many changes in the cryptocurrency industry. Reports suggest that he will issue some executive orders immediately, some of which may relate to the regulation of digital assets that could determine the legal status of the industry. Another important order expected to aim at combating the cancellation of cryptocurrencies - an issue that the industry has been complaining about for a long time. The Biden administration is accused of trying to get financial institutions to close the accounts of cryptocurrency companies, a strategy called "ChokePoint 2.0 Campaign." If this is reversed, it could reopen access to basic banking services for the industry. Digital Currency Banking Reform Another anticipated decision will be the removal of a hotly debated banking regulation passed in 2022. The policies stipulate that banks holding cryptocurrencies must recognize them as liabilities in their balance sheets. Critics have argued that the approach perpetuates misconceptions about the true nature of digital assets and hinders their realization and integration. Those familiar with Trump's transition plan have emphasized that these changes are a top priority. As one source in the discussion said, "The Trump team has made it very clear that this is a top priority." The proposed actions are a result of industry complaints about the current legal framework for cryptocurrencies. CEOs working in the digital asset field have welcomed possible changes in policy and hope that these changes will mark a turning point for the industry. Critics of the Biden administration argue that the imposed measures have limited innovation and pushed investment out of the United States. Pressure forced Trump to change not only from outside the industry but also from within the industry. Civil society organizations and business representatives have called on him to sign executive orders on cryptocurrencies in his first 100 days in office. There are indications that at least one such order may be issued on his first day as president. Leadership and Strategy In the presidential campaign, Trump focused on supporting cryptocurrencies and blockchain technology. He pledged to build the United States into a global cryptocurrency powerhouse by establishing a Bitcoin reserve fund and relaxing regulatory environment for industry participants. David Sack, who is set to oversee cryptocurrency and artificial intelligence in the Trump administration, has also outlined a proactive roadmap for this field. In a meeting in December with technology CEOs and government officials, Sack criticized Biden's 2023 AI order on language fairness and expressed that Trump will revoke this order. According to Sack, this aligns with the government's approach to encouraging the development of new products while reversing some of the strictest measures currently in place. The fact is that Marc Andreessen is a dynamic venture capitalist who invests in technology and cryptocurrency, only increasing expectations. Andreesen has directly influenced Trump's policies and sought talent for key positions in the government. Trump's proposals have inspired the digital asset industry, with executives in the field expecting the government to take a more favorable stance. His administration's non-regulatory approach complements what many see as the right approach to further liberalize the financial sector. Opponents of many measures previously implemented by the government have accused the government of overregulating the economy and driving away talent. Repealing measures such as SEC Staff Accounting Bulletin 121, treating cryptocurrencies as liabilities, may help address some of the biggest issues in the industry. Conclusion With the inauguration taking place on January 20th, excitement is running high across the world of digital assets. The early steps that Trump takes in his new role could determine whether the next four years will see a revolution in the management of cryptocurrencies, with impacts that could extend beyond the US. The world will be watching to see how these promises will be fulfilled. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)