Donald Trump ran his presidential election campaign with special emphasis on the crypto industry. As a new Trump administration waits to come into power, crypto enthusiasts believe that the industry will finally witness clear regulations. The Trump crypto stance was the biggest highlight of his presidential election campaign. Trump had claimed that he would create a national Bitcoin reserve and establish the United States as the “crypto capital” of the planet. 

On top of it, the new president-elect has been recruiting pro-crypto officials into his administration. Have all these factors fuelled the recent surge in Bitcoin price? Let us find out the answer with an analysis of what the Trump administration may bring for Bitcoin.

Barriers for the Growth of Cryptocurrencies

The recent Bitcoin surge shifted the world’s attention towards Donald Trump’s election promises. One of the most crucial promises made by Trump during his election campaign was the introduction of crypto regulations. Experts have pointed out that the new Trump crypto regulations will boost growth of the industry. Trump had also promised that new crypto regulations formed during his administration will be crafted by pro-crypto officials.

Cryptocurrencies are digital currencies that work in a decentralized network without the intervention of central banks and governments. The lack of backing from governments and traditional financial institutions is a formidable setback for cryptocurrencies. The freedom from government control enables crypto owners to use it for criminal activities. 

Without any regulations, no one will believe that cryptocurrencies are safe financial assets. On top of it, majority of active crypto users do not use Bitcoin or other cryptocurrencies as digital currency. If you look closely, crypto trading and investment without a stable and regulated market is similar to gambling.  

How Will the Trump Administration Make Things Better for Crypto?

The views of President-elect Donald Trump on cryptocurrencies changed significantly during his recent election campaign. He had described cryptocurrencies as magic tricks conjured out of thin air. On top of it, Trump had painted Bitcoin as a scam while predicting that the cryptocurrency industry will crash soon. 

The transformation in Trump’s views on cryptocurrencies led to the Bitcoin recent surge alongside establishing the foundation for growth of crypto industry. How did the pro-crypto stance of Trump lead to surge in Bitcoin price? You can find the answer to such questions in the events expected with the arrival of a new Trump administration.

• More Regulations for Cryptocurrencies

The pro-crypto stance of Trump will lead to clear regulations for the crypto industry thereby supporting the growth in value of cryptocurrencies. Trump has nominated Paul Atkins, a renowned cryptocurrency lobbyist, to become the SEC chair in his administration. The appointment of pro-crypto officials will bring a new perspective on crypto regulations. For example, established giants in the crypto landscape such as Coinbase have called for regulations to enhance predictability. 

The discussions on questions like ‘will the US government regulate cryptocurrency’ draw the limelight towards legitimacy for cryptocurrencies and Bitcoin. Following the approval for spot Bitcoin ETFs, new crypto-friendly regulations may create the foundations for surge of Bitcoin. Investors will use regulations as references to determine whether Bitcoin and other cryptocurrencies are legitimate financial assets. 

• National Bitcoin Reserve on the Cards

Trump had also come up with the proposal for a national Bitcoin reserve in the United States. The President-elect believes that the Bitcoin reserve will offer safeguards against depreciation in value of the US Dollar. The proposal for creating the strategic Bitcoin reserve offers a clear outline of the measures that will help in acquiring Bitcoin. Trump may have proposed the best thing in the crypto landscape after the ETF approval to draw mainstream attention towards Bitcoin.  

Final Thoughts 

Donald Trump displayed a positive attitude towards cryptocurrencies during his presidential election campaign. He urged the US government to pay attention to cryptocurrencies and make the most of them as other countries like China. The election campaign of Trump also focused on appointment of crypto-friendly officials in his administration. Choose any fundamental or cryptocurrency trading course that covers the fundamentals and you can find out that the crypto market is extremely volatile. The support from government for growth of cryptocurrencies and creation of crypto regulations will enhance their mainstream appeal. Positive market sentiment due to Trump’s pro-crypto stance has and will continue to play a major role in rise of Bitcoin value.