Cryptocurrency has been a hot topic in recent times, with analysts predicting its regulation within the first 100 days of the Trump administration. Of all the issues facing the incoming 119th U.S. Congress, cryptocurrency seems poised to generate swift action and significant headlines. This all begins with the agenda set by President-elect Donald Trump, as two longtime Capitol Hill veterans explained on Monday.

Unraveling the Crypto Future under the Trump Administration

Regulatory Landscape Before Trump

Before the Trump administration, cryptocurrency was a relatively uncharted territory in terms of regulation. It operated in a somewhat ambiguous space, with different views on its legitimacy and potential risks. However, with Trump's focus on various aspects of the economy and financial services, cryptocurrency has now come to the forefront.

As Peter Roskam, a former six-term congressman and lobbyist for BakerHostetler, pointed out, "The issue's ripe to me. There's a level of familiarity with rank and file, and an understanding that this has to be dealt with. Technology is just cascading past things." This indicates that there is a growing recognition of the need to address cryptocurrency regulation.

Trump's Crypto Stance and Actions

Trump's stance on cryptocurrency has undergone a significant transformation. Once referring to it as a "scam," he now embraces digital assets and has proposed a bitcoin federal reserve. During his appearance at the Bitcoin 2024 conference in July, he vowed to make the United States the "bitcoin superpower" of the world.

Since winning the election, cryptocurrency has soared. On Monday, the world's leading cryptocurrency rose nearly 5% after Trump again affirmed plans to create a U.S. "bitcoin strategic reserve." This surge pushed bitcoin to a new record above $106,000, highlighting the impact of Trump's words on the cryptocurrency market.

Congressional Actions and Bills

The first 100 days of a new president's term are typically reserved for high-priority items, and a cryptocurrency bill could be high on Trump's list. A new bill could resemble one the House of Representatives passed in May to create a new legal framework for digital currencies.

Despite a warning from the SEC that it could create new financial risks, the Republican-sponsored Financial Innovation and Technology for the 21st Century Act passed in a bipartisan 279-136 vote. Bill supporters argue that it will provide regulatory clarity and help promote the industry's growth.

Industry Impact and Future Outlook

The cryptocurrency industry needs clear regulations to thrive. As Kevin R. Edgar, a former House counsel and partner at BakerHostetler, explained, "Crypto businesses need to know what the rules are and whether they answer to the SEC or the Commodity Futures Trading Commission."

With Trump's support and the potential passage of cryptocurrency legislation, the future of cryptocurrency in the United States looks promising. It could lead to increased innovation and growth in the industry, while also ensuring that appropriate safeguards are in place.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.© Entire contents copyright 2024 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.