Donald Trump’s decisive 2024 election victory and a projected Republican-controlled Congress signal a seismic shift in U.S. crypto policy, as per news reports on Reuters. Trump’s pro-crypto stance has positioned him as the “crypto president,” with promises to overhaul the nation’s approach to digital assets.
Quick Take
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Trump proposes eliminating capital gains taxes on U.S.-issued cryptocurrencies like Bitcoin (BTC), Cardano (ADA), and Ripple (XRP).
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Industry eyes a new SEC chair and improved banking access for crypto firms under Trump’s leadership.
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Optimism drove Bitcoin above $93,000 last week, with $100,000 within reach.
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Speculation rises over U.S. plans for a federal Bitcoin reserve and state-level initiatives.
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Crypto companies spent $119M on pro-crypto candidates, expecting favorable policies.
No Capital Gains Tax on U.S. Crypto: A Game-Changer?
According to a news report on Brave New Coin, under Trump’s plan, U.S.-issued cryptocurrencies would be exempt from capital gains taxes, creating a significant competitive advantage. Tokens like Cardano (ADA), Ripple (XRP), and Hedera Hashgraph (HBAR) could become more appealing to investors.
This move aims to drive capital flows toward U.S.-based projects, boosting domestic innovation and economic growth.
“American-made cryptocurrencies will become the most logical investment for U.S. citizens,” predicted Good Morning Crypto.
Speculation on Broader Policy Implications
Trump’s administration may also explore:
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Nation-State Crypto Adoption: Federal-level support for Bitcoin as a reserve asset.
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Tax Incentives for Sustainable Mining: Encouraging eco-friendly practices in Bitcoin mining, tied to Trump’s “Freedom Cities” initiative.
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Executive Orders: Immediate measures to streamline crypto regulation and enhance market clarity.
Industry Invests Over $119M in Pro-Crypto Policies
Crypto companies spent over $119 million supporting pro-crypto congressional candidates, anticipating a favorable regulatory environment. These efforts reflect the industry’s focus on influencing policy and ensuring a supportive framework for growth.
Trump’s proposed policies, including tax cuts and reduced regulatory barriers, could justify this investment by accelerating blockchain adoption across industries.
Trump’s Pledge for a Crypto Advisory Council
To strengthen ties with the industry, Trump has pledged to establish a crypto advisory council. This group would include key players in blockchain policy to guide legislation and foster innovation.
Jonathan Jachym from Kraken noted that leadership choices will be critical:
“Everybody in Washington is asking and thinking about... who’s going to lead these agencies.”
Trump’s Victory Paves Way for Crypto Policy Overhaul
Industry executives are optimistic about significant policy changes, including executive orders granting crypto firms better access to banking services and appointments of crypto-friendly regulators.
“The voters of America said very clearly they want to see that,” said Mike Belshe, CEO of BitGo.
These anticipated changes could reshape the U.S. crypto landscape, making the nation a global hub for blockchain innovation and investment.
Crypto Industry’s Expectations: SEC Chair and Banking Access
The crypto industry has high hopes for sweeping regulatory reforms under Trump’s administration, starting with the appointment of a crypto-friendly chair to lead the Securities and Exchange Commission (SEC). Such a move would signal a shift toward regulatory oversight that prioritizes innovation and supports the growth of digital assets. Industry leaders believe that a supportive SEC chair could play a pivotal role in crafting a balanced regulatory framework, ensuring the United States remains competitive in the rapidly evolving blockchain sector.
Beyond leadership at the SEC, crypto firms are also pushing for improved access to banking services. For years, regulatory uncertainty and skepticism have created barriers for crypto companies seeking financial services. Simplifying banking access could unlock new opportunities for both established companies and startups, enabling them to operate more efficiently within the U.S. financial ecosystem.
Kara Calvert, Coinbase’s U.S. policy head, underscored the critical role of leadership in shaping these changes. She noted that while large platforms like Coinbase have a vested interest in regulatory clarity, smaller startups are equally dependent on having a regulatory environment that fosters innovation and growth.
“It’s important for companies like Coinbase, but also for all the smaller startups... to have a point of view.”
These expectations reflect the broader sentiment within the industry: that with supportive leadership and clear regulatory pathways, the United States could become a global hub for cryptocurrency innovation. However, much will depend on the administration’s ability to translate these ambitions into actionable policies.
Strategic Bitcoin Reserve: Federal and State-Level Initiatives
Rumors are circulating about Trump’s administration backing a Strategic Bitcoin Reserve. According to Forbes, such a move would align with growing state-level crypto initiatives and could position Bitcoin as a key national asset.
Industry insiders suggest several U.S. states may introduce laws supporting state-controlled Bitcoin reserves, with federal backing potentially on the horizon.
“This could reshape global crypto competition and accelerate adoption at an unprecedented scale,” noted one source close to the administration.
Additionally, reports indicate that other nations, including Poland, are exploring similar reserves, underscoring the international momentum toward government-held digital assets.
Read more: Bitcoin Rockets Past $93K on Surging U.S. Demand – When Will It Reach $100K?
Bitcoin Soars Past $93,000 Amid Policy Optimism
BTC/USDT price chart | Source: KuCoin
Bitcoin surged above $90,000 following Trump’s election, fueled by optimism over his crypto-friendly policies. Analysts predict Bitcoin could hit $100,000 soon, with some even forecasting a meteoric rise to $1 million in the long term.
Dennis Porter from the Satoshi Action Fund emphasized the speed of potential growth:
“The jump from $100k to $1mil will happen much faster than people realize. Gradually then suddenly.”
Read more: Bitcoin Price Prediction 2024-25: Plan B Forecasts BTC at $1 Million by 2025
Global Crypto Adoption: The Road Ahead
Optimism surrounding recent developments in U.S. crypto policy remains high, but challenges persist. Passing comprehensive legislation for a regulatory framework is expected to take time, even with a favorable stance from the new administration. Addressing concerns about federal budget deficits, potentially exacerbated by proposed tax cuts, adds another layer of complexity to policy implementation.
While Trump’s victory signals a potential shift in the crypto industry’s trajectory, the road ahead is not without uncertainty. Promises of tax relief, strategic initiatives, and the creation of a crypto advisory council have raised expectations for significant progress in the digital assets space. However, the pace and scale of these changes will depend on legislative support and execution.
As Bitcoin edges closer to the $100,000 milestone, the U.S. stands at a critical juncture in its efforts to solidify its leadership in the global crypto market. Yet, investors should remain cautious. Market volatility, regulatory delays, and global economic factors could impact the implementation of these policies and the broader crypto landscape.
Read more: Trending Memecoins to Watch This Week as Crypto Market Sees Record Highs
