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Signs of What Trump Might Do for Crypto – Part 2
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In the first part of this article, we showed the market’s reaction to Trump’s return to the White House. As a result, altcoins are back up and whales are going after some cryptos they believe could profit from this administration.
In this article, we’ll take a look at some possible areas Trump could affect the crypto industry in his second stint at the Oval Office.
Key Policies the Industry Expects
1) Bitcoin Reserves for States
Trump’s administration is expected to support initiatives for Bitcoin reserves. Several states, including Wyoming, Pennsylvania, Texas, and Ohio, have proposed Strategic Bitcoin Reserve bills. These bills aim to establish Bitcoin as a strategic asset, allowing states to hold Bitcoin reserves much like gold. Two days ago, Arizona introduced a bill to get a BTC reserve.
BIG BREAKING: A bill to create a ‘Strategic Bitcoin Reserve’ has officially been introduced in the state of Arizona by @WendyRogersAZ
Arizona becomes the 10th state to join the cause. pic.twitter.com/gBEnosDdj6
— Dennis Porter (@Dennis_Porter_) January 18, 2025
If Trump’s administration prioritizes this, it could create a domino effect, encouraging more states to adopt Bitcoin reserves. This move would not only solidify Bitcoin’s status as a valuable asset but also integrate it into the broader financial system.
2) Crypto as a National Priority
Multiple reports state that Trump could sign an executive order on his first day returning to the White House. The order would reportedly designate Bitcoin as a national priority. What does this mean?
Trump plans to release an executive order elevating crypto as a policy priority and giving industry insiders a voice within his administration https://t.co/6k7pCJuQTa
— Bloomberg (@business) January 16, 2025
This order would direct regulatory agencies to collaborate with the industry and potentially establish a crypto council to advocate for policies aligned with industry goals. Key elements under discussion include:
- Reviewing crypto policies across government agencies.
- Freezing ongoing crypto-related cases.
- Establishing a government Bitcoin reserve to manage seized assets.
The move to prioritize crypto at a national level means the U.S. could become a crypto hub and also attract more developers and investors. It could also make Bitcoin more friendly in terms of regulations.
3) Surge in Trump-Affiliated Projects
Trump’s influence has already impacted the market. For instance, Solana saw a 10% surge after the launch of a Trump-affiliated memecoin. Moving forward, we could see other projects tied to Trump’s initiatives or those supported by the World Liberty Foundation, a Trump family-backed organization.
Donald Trump Launches his Meme token $Trump on @solana blockchain.
People are getting crazy for this. They are selling their altcoins to get #Trump coin. Solana price also surged
pic.twitter.com/PXgiMo0KbY
— Mohsin Ali (@Mohsin_71) January 18, 2025
4) Clearer Regulations on the Way for the Crypto Market
One of the biggest expectations is regulatory clarity. Trump’s administration is likely to push for crypto-friendly policies from bodies like the SEC and CFTC. This could reduce uncertainty and encourage institutional investment, boosting the U.S. crypto market’s global competitiveness.
BREAKING: Trump expected to propose forming an America-first crypto reserve that would “prioritize digital coins founded in the US,” per NYPost.
This would include coins like $SOL, USD Coin and $XRP. pic.twitter.com/PAMaOS1v0H
— Armando Pantoja (@_TallGuyTycoon) January 16, 2025
Industry leaders have long advocated for clear regulations to address issues such as token classifications, taxation, and compliance. Under Trump, we could see:
- Simplified frameworks for registering and launching crypto projects.
- Greater transparency in taxation policies for crypto transactions.
- Increased collaboration between government agencies and the private sector.
Such measures would not only benefit established players but also create opportunities for startups and innovators to thrive in a supportive environment.
Why This Matters for the Crypto Market
The anticipation of Trump’s crypto policies has already caused ripple effects across the industry. Whale activity and price surges suggest investors are positioning themselves for significant changes. If Trump delivers on his promises, the U.S. could solidify its role as a leader in the crypto space. Will Trump’s actions match the hype? We’ll find out soon enough. For now, the industry is holding its breath.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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