Political shifts and new leadership at major federal agencies by 2025 may open doors for pro-crypto policies and more supportive regulations.
Key Notes
- Bitcoin surged 84% this year to $82,000, driven by Trump’s win and Republican victories.
- Crypto PACs invested $135 million in campaigns, aiming to shape pro-crypto US policies.
- Senator Cynthia Lummis’ BITCOIN Act proposes a 1 million Bitcoin reserve to boost economic security.
Bitcoin’s value
BTC
$88 385
24h volatility:
9.2%
Market cap:
$1.75 T
Vol. 24h:
$152.32 B
and political influence are swiftly rising. This year’s remarkable 84% growth has pushed the cryptocurrency to the $82,000 mark, driven by Donald Trump’s presidential win and the Republican Party’s recent electoral successes, according to the November 11 report by The New York Digital Investment Group (NYDIG).
“It is now becoming a political imperative,” said Cipolaro.
Greg Cipolaro, NYDIG’s global head of research, highlighted that while some investors have started to allocate to Bitcoin, most still have zero exposure. He stated, “No more excuses.” Cipolaro also emphasized Bitcoin’s increasing political relevance, warning that ignoring the cryptocurrency could soon become a financial mistake.
Political shifts signal potential changes, with expectations of relaxed regulations that have previously limited cryptocurrency companies. By 2025, new leaders will assume positions at major federal agencies such as the SEC, OCC, FDIC, and the Treasury Department. That transformation may open doors for pro-crypto policies and more supportive regulations.
Pro-Crypto Legislation on the Horizon
The recent election outcomes offer the crypto community a rare chance to influence top government decision-making. With Republicans now leading the White House and Congress, there is growing hope for wider acceptance of cryptocurrencies and blockchain technologies. Yet, the details of upcoming legislation remain unclear and hinge on the priorities of new appointees.
For almost eight years, the crypto sector has pursued regulatory clarity through various efforts, such as meetings, pleadings, and lawsuits. Political action committees (PACs) dedicated to crypto have played a pivotal role, investing around $135 million in campaign donations and advertisements to back candidates sympathetic to the industry. This strategic investment seeks to shape US policy in favor of digital assets.
As Republicans take leadership in key federal agencies, the crypto community anticipates a more favorable regulatory climate. The SEC, OCC, and FDIC are expected to adopt a more crypto-friendly approach, potentially loosening restrictions and facilitating the integration of digital assets into the traditional financial system.
Strategic Moves in Crypto Regulation
Senator Cynthia Lummis has introduced the BITCOIN Act, a significant legislative initiative that proposes the creation of a Bitcoin reserve for the United States. This reserve would enable the government to hold Bitcoin as a safeguard against economic volatility, strengthening national economic security. The plan includes acquiring 1 million Bitcoins, which could eventually constitute 5% of Bitcoin’s total supply, worth about $76 billion at current market rates.
Donald Trump has shown support for this idea, although his approach differs. He suggests converting 204,000 Bitcoins currently held by the US through law enforcement actions into a strategic reserve. However, legal complications may arise, as many of these Bitcoins belong to identifiable victims, including Bitfinex, which is linked to Tether.
In addition to these proposals, a shift in regulatory leadership could influence how the SEC handles major crypto industry lawsuits. Agencies may become more open to settlements or even abandon some ongoing lawsuits against companies like Ripple Labs, Coinbase, Binance, Kraken, and Cumberland.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
