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Coinbase Inc. COIN Chief Policy Officer Faryar Shirzad expects swift passage of cryptocurrency legislation under President-elect Donald Trump‘s administration, as Bitcoin BTC/USD prices surge to record levels amid expectations of a dramatic shift in U.S. crypto policy.
What Happened: Trump’s victory, coupled with Republican control of Congress, has energized 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 ever in history, we have an extraordinarily pro-crypto president coming into office,” Shirzad told CNBC, highlighting the potential for rapid legislative action in 2025. “I think the combination should finally allow the 50 million Americans who own crypto to have their interests and voice heard in policy.”
The cryptocurrency industry flexed considerable political muscle during the election, with crypto-related political action committees raising over $245 million. Nearly 300 pro-crypto lawmakers will take seats in the next Congress, according to the Coinbase-backed Stand With Crypto Alliance.
See Also: Bitcoin, Dogecoin Move Up, Ethereum Steadies As Traders Prepare For Crypto’s Final 2024 Flourish
Two key pieces of legislation await consideration: the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act. Both bills aim to establish clear regulatory frameworks for digital assets and stablecoins.
Why It Matters: The incoming administration is reportedly planning to shift significant regulatory authority from the Securities and Exchange Commission to the CFTC, particularly for Bitcoin and Ethereum ETH/USD spot markets. This move would affect oversight of a $2.24 trillion market segment.
Current SEC Chair Gary Genslerknown for his aggressive enforcement approach toward crypto companies, will step down on Jan 20. MicroStrategy Inc. MSTR Executive Chairman Michael Saylor compared Trump’s proposed national Bitcoin reserve to the Louisiana Purchase, calling it “manifest destiny for the United States.”
However, some financial experts urge caution. Moody’s Analytics Chief Economist Mark Zandi warned about potential risks to taxpayers, citing crypto market volatility. The government currently holds approximately $20 billion in seized cryptocurrencies, which could form the foundation of the proposed national reserve.
Price Action: Bitcoin was trading at $95,160 at the time of writing, down by 1.93% over the last 24 hours, according to Benzinga Pro data.
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