Pro-crypto sentiment surges with regulatory changes in the SEC and political support.
A Changing SEC Landscape
Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), announced his resignation effective January 20, marking a pivotal moment for the cryptocurrency industry. Gensler’s tenure was characterized by strict enforcement actions against major crypto firms, including lawsuits against Coinbase and other key players.
President-elect Donald Trump pledged Gensler’s removal as part of his campaign to create a more crypto-friendly regulatory environment. Industry leaders view this shift as a significant step toward fostering innovation and clarity in digital asset regulations.
A New Era for Crypto Regulation
Reports suggest that the Trump administration may establish a dedicated White House role for cryptocurrency policy. Additionally, Trump plans to form a crypto advisory council and work with Congress to build a national Bitcoin reserve.
“The main request of investors has been clear regulation,” said Bitwise Asset Management CEO Hunter Horsley, highlighting the industry’s optimism for streamlined policies.
Market Reaction: Bitcoin Nears $100K
Bitcoin surged to $98,374 following the news, continuing its rally fueled by expectations of pro-crypto policies under the incoming administration. This represents a remarkable climb from $42,265 at the start of the year.
The potential for Republican control of the Senate in 2025, bolstered by the election of pro-crypto Senator Bernie Moreno in Ohio, adds to the industry’s optimism for favorable legislation in Washington.
Industry Support and Criticism
The crypto sector invested over $130 million in recent elections to promote industry-friendly candidates. Coinbase CEO Brian Armstrong noted that being anti-crypto is increasingly seen as “bad politics.”
Despite this momentum, skeptics remain cautious, emphasizing the need for balanced regulation that addresses concerns such as fraud, energy consumption, and consumer protection.
Looking Ahead
With Trump’s commitment to bolstering the industry and regulatory shifts on the horizon, the cryptocurrency landscape is poised for significant transformation.
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