The asset management giant Ark Invest was optimistic about the positive impact of the incoming administration of donald trump in the Cryptocurrency industry in the US
What happened
In the weekly newsletter shared on Monday, the firm led by Cathie Wood He stated that Trump’s policies could provide “significant advantages” for the digital asset industry and bring “much-needed” regulatory clarity.
The firm glimpsed the possibility of a US Securities and Exchange Commission (SEC) more friendly to cryptocurrencies and the end of the current president’s “regulation by taxation” policy Gary Gensler.
Ark Invest also highlighted the potential for the reopening of the initial public offering (IPO) window for late-stage digital asset companies, such as Circle and Krakenas well as the passage of long-awaited digital asset legislation such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Payment Stablecoin Clarity Act of 2023.
https://t.co/2hqy6Neh41
— ARK Invest (@ARKInvest) November 12, 2024
Circle, the issuer of the stablecoin USD Coin (CRYPTO:USDC), confidentially filed for an IPO in early January. However, a June report from financial news outlet Barron’s revealed SEC reservations about the company’s core product, which could impact its stock price.
As for Kraken, the cryptocurrency exchange raised $100 million as part of a pre-IPO funding round in June, according to a Bloomberg report.
Additionally, the repeal of Staff Accounting Bulletin 121 (SAB-121), a controversial SEC directive that prevents banks from custodying cryptocurrencies and which was challenged by both chambers of the US Congress, was considered a “legislative priority.” ”.
You can also read: Canaan Stock Outperforms Bitcoin‘s Monthly Performance in a Single Day
Why is it important
These observations from Ark Invest come in the context of Wood, the company’s founder and CEO, supporting the senator’s plan. Cynthia Lummis (Republican Party – Wyoming) to establish a strategic reserve of Bitcoin (CRYPTO:BTC) in the US. President-elect Trump supported the creation of such a reserve during the campaign.
Wood is a well-known Bitcoin enthusiast and has projected unrealistic target prices for the cryptocurrency in the past.
He projected that BTC will reach a unit price of $3.8 million by 2030. Although not impossible, it is unlikely that Bitcoin will reach these levels within the mentioned period.
His firm operates the ARK 21Shares Bitcoin ETF (BATS:ARKB), which currently has $4.44 billion in net assets, according to SoSo Value.
Photo courtesy of Shutterstock
You can also read: Anthropic CEO projects AGI for 2026-2027: Factors that could delay its arrival
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