Faryar Shirzadpolicy director of Coinbase Inc. (NASDAQ:COIN), Sees Quick Passage of Cryptocurrency Legislation Under President-Elect’s Administration donald trumpsince the prices of Bitcoin (CRYPTO:BTC) soar to record levels on expectations of a radical change in US cryptocurrency policy.
What happened
Trump’s victory, along with Republican control of Congress, has given vitality to the cryptocurrency industry, pushing Bitcoin above the $99,000 mark.
Trump’s pro-crypto stance marks a significant departure from the current regulatory environment, with plans ranging from establishing a national Bitcoin reserve to expanding the Commodity Futures Trading Commission’s oversight of digital assets.
“We have the most pro-crypto Congress in history, we have an extraordinarily pro-crypto president coming into office,” Shirzad told CNBC, underscoring the potential for quick legislative action in 2025. “I think the combination should finally allow to the 50 million Americans who own cryptocurrencies to have their interests and voice heard in politics.”
During the election, the cryptocurrency industry flexed considerable political muscle, with cryptocurrency-related political action committees raising more than $245 million. Nearly 300 pro-crypto lawmakers will take their seats in the next Congress, according to the Coinbase-backed Stand With Crypto Alliance.
There are two key bills waiting to be considered: the Financial and Technology Innovation for the 21st Century Act and the Stablecoin Payments Clarity Act. Both laws aim to establish clear regulatory frameworks for digital assets and stablecoins.
Why is it important
The incoming administration reportedly plans to move a significant portion of its regulatory powers from the Securities and Exchange Commission to the CFTC, particularly for the Bitcoin spot market and Ethereum (CRYPTO: ETH). This move would affect the oversight of a $2.24 trillion market segment.
The current president of the SEC, Gary Genslerknown for its aggressive approach to law enforcement towards cryptocurrency companies, will resign on January 20. The executive president of MicroStrategy Inc.(NASDAQ:MSTR), Michael Taylorcompared Trump’s proposed Bitcoin national reserve to the Louisiana Purchase, calling it “manifest destiny for the United States.”
However, some financial experts have warned that caution is warranted. Moody’s Analytics Chief Economist Mark Zandiwarned of potential risks to taxpayers, citing the volatility of the cryptocurrency market. The US government currently holds approximately $20 billion in seized cryptocurrencies, which could form the basis of the proposed national reserve.
Bitcoin price movement
Bitcoin was trading at $95,269.57 at the time of writing, representing a decline of 1.80% over the past 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
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