Crypto investors are experiencing a surge in prices, thanks in part to President-elect Donald Trump’s victory. The anticipation of his administration’s stance on cryptocurrency regulation has led to increased buying activity across the industry. Here are the key reasons why crypto is poised for continued growth.
The regulatory environment is becoming more favorable. Trump’s campaign promises to ease regulations on cryptocurrencies have been met with promise by Gensler, who will step down as SEC chair once Trump takes office. This shift in leadership may lead to a reevaluation of existing rules, such as Staff Accounting Bulletin 121, which requires banks to account for crypto assets on their balance sheets.
Additionally, the CFTC is being considered to regulate the Bitcoin and Ethereum spot market, a preference among crypto stakeholders over the SEC’s approach. The Republican sweep in Congress also supports this shift, with Coinbase’s Chief Policy Officer predicting that pro-crypto legislation will pass expediently.
The approval of spot exchange-traded funds (ETFs) by the SEC has made it easier for investors to access cryptocurrencies. More traditional brokerages are likely to follow suit, offering a wider range of cryptocurrencies to their clients. With the Trump administration’s support, more good news is expected for crypto, including wider liquidity and more favorable regulations.
Source: https://www.fool.com/investing/2024/12/05/president-elect-donald-trump-is-poised-to-make-thi