The Future of Crypto Regulation Under a Trump Administration: “Headwinds Are Now Tailwinds”

Bernstein said Wednesday that regulatory headwinds have turned into tailwinds, following Donald TrumpAmerican victory in the American presidential election.

What happened: “The market is far from having priced in this change,” Bernstein said in his report released Wednesday.

Bernstein’s report highlights that specific regulatory changes are expected to accelerate under a new administration, with a “cryptocurrency-friendly SEC and Senate Banking Committee” likely to provide the regulatory clarity the industry has long awaited.

“We expect a new rule-making regime in crypto,” Chhugani added, anticipating progressive frameworks that address issues such as asset classification, broker/dealer regulation and ownership of cryptocurrencies by banks.

The report also highlights that bipartisan support could accelerate progress on crypto legislation, despite political divisions. Bernstein analysts predict rapid developments on a stablecoin bill and an industry structure bill for exchanges and brokers.

This could bring clarity to private issuers of stablecoins like Circle USDC/USD And Paxosas well as US-based crypto exchanges.

“This transformational change is not being addressed,” the report notes, encouraging investors to capitalize on these changes as they unfold.

Also Read: Raoul Pal Urges Crypto Investors: “Don’t Use Leverage, Don’t Lose Your Mind”

Coinbase Inc. COIN founder Brian Armstrong echoed these sentiments, celebrating the election of over 219 pro-crypto candidates. “Tonight, the crypto voter spoke decisively across party lines,” Armstrong said, expressing optimism about working with the new Congress to establish “clear rules of conduct” for digital assets.

Bernstein further expects the Trump administration’s pro-Bitcoin policies to impact areas such as Bitcoin BTC/USD Bitcoin mining and national reserves.

The report suggests that the United States could consider a sovereign Bitcoin reserve similar to gold reserves, thereby positioning Bitcoin as a strategic asset.

Additionally, policies could encourage the growth of Bitcoin mining in the United States, potentially integrating miners into energy and AI data center infrastructure.

And then: As these regulatory changes unfold, industry leaders will explore the broader implications at Benzinga’s Future of Digital Assets event on November 19.

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