Under President-elect Donald Trump's administration, Coinbase Inc. Chief Policy Officer Faryar Shirzad anticipates a swift passage of cryptocurrency legislation. This comes as Bitcoin BTC/USD prices surge to record levels, driven by expectations of a significant change in U.S. crypto policy.
Trump's Impact on the Cryptocurrency Industry
Trump's victory, combined with Republican control of Congress, has given a significant boost to the cryptocurrency industry. Bitcoin has surpassed the $99,000 mark, marking a remarkable milestone. His pro-crypto stance sets him apart from the current regulatory environment, with plans including establishing a national Bitcoin reserve and expanding the Commodity Futures Trading Commission's oversight of digital assets. Shirzad, in an interview with CNBC, emphasized the potential for rapid legislative action in 2025. He stated, "We have the most pro-crypto Congress ever in history, and an extraordinarily pro-crypto president coming into office. I think the combination should finally allow the 50 million Americans who own crypto to have their interests and voice heard in policy."During the election, the cryptocurrency industry demonstrated considerable political influence. Crypto-related political action committees raised over $245 million. According to the Coinbase-backed Stand With Crypto Alliance, nearly 300 pro-crypto lawmakers will take seats in the next Congress.Two crucial pieces of legislation are awaiting consideration: the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act. These bills aim to provide clear regulatory frameworks for digital assets and stablecoins.The Incoming Administration's Regulatory Shift
The incoming administration is reportedly planning to transfer significant regulatory authority from the Securities and Exchange Commission to the CFTC, especially for Bitcoin and Ethereum ETH/USD spot markets. This move will have a profound impact on the oversight of a $2.24 trillion market segment. Current SEC Chair Gary Gensler, known for his strict enforcement approach towards crypto companies, will step down on Jan 20. MicroStrategy Inc. Executive Chairman Michael Saylor compared Trump's proposed national Bitcoin reserve to the Louisiana Purchase, highlighting its significance.However, some financial experts caution against excessive enthusiasm. Moody's Analytics Chief Economist Mark Zandi warned about potential risks to taxpayers due to crypto market volatility. The government currently holds approximately $20 billion in seized cryptocurrencies, which could form the basis of the proposed national reserve.Price Action and Market Outlook
At the time of writing, Bitcoin was trading at $95,160, down by 1.93% over the last 24 hours, according to Benzinga Pro data. The cryptocurrency market remains dynamic, with various factors influencing its price movements. Traders are preparing for the final 2024 flourish, and Bitcoin's performance will be closely watched.In conclusion, the cryptocurrency landscape is undergoing significant changes under the Trump administration. The passage of relevant legislation and the shift in regulatory authority will shape the future of the industry. Traders and investors need to stay vigilant and adapt to these evolving circumstances. 
