President-elect Donald Trump’s expected return to the White House has injected new optimism into the crypto market, with many expecting a more favorable regulatory environment. While there are uncertainties over how much involvement Trump will have in advancing the industry and how likely it is that a law can be passed in Congress, key positions such as SEC, CFTC, and Treasury Department leadership will play a critical role in shaping his administration’s policies.
Industry members are eager for regulatory clarity, but deregulation may not necessarily mean less oversight. Trump’s administration is likely to prioritize deregulation across most sectors, with crypto potentially being an exception. A joint document from the SEC and CFTC on token classification could provide much-needed guidance, leaning towards the industry-preferred perspective.
A Republican trifecta in Congress would be a significant win for the crypto industry, but passing legislation such as FIT21 is not guaranteed. Senate Democrats may still hold sway, and key committee chairs remain undecided, impacting the chances of getting bills done. While Tim Scott’s support for crypto has been indicated, he has yet to prioritize it as a top issue.
Despite this uncertainty, Trump’s involvement in crypto seems more likely than under the Biden administration. However, confirmation by the Senate and passing laws through Congress will still be a slow and difficult process.
Source: https://www.forbes.com/sites/owentedford/2024/11/08/the-outlook-for-crypto-under-trump-and-a-republican-congress