Cryptocurrency Task Force Bolsters Investor Sentiment as Industry Anticipates Trump Orders
Summary:
On President Donald Trump's second day in office, the Securities and Exchange Commission (SEC) established a cryptocurrency task force. This move has fueled investor enthusiasm, as the crypto world awaits executive orders from the new administration.
Price Impact:
The price of Bitcoin (BTC-USD), the largest cryptocurrency, rose above $106,000 on Tuesday, reversing Monday's decline following Trump's inauguration.
SEC Approach:
The SEC task force aims to provide regulatory clarity, facilitate registration, and enhance disclosure frameworks. The SEC previously clashed with crypto companies during President Biden's tenure.
Industry Initiatives:
Industry executives are testing the Trump administration's stance by filing applications for crypto-related ETFs. Rex Shares and Osprey Funds have submitted seven such applications, including funds holding XRP, SOL, Dogecoin, and TRUMP.
Executive Orders:
Industry players anticipate executive orders from Trump that would favor the crypto sector. Many believe that such orders could drive positive momentum in the market.
Potential Actions:
One possible action by the Trump administration could be repealing President Biden's executive order on crypto assets, which urged regulators to mitigate risks.
Banking and Regulatory Changes:
The crypto and banking industries hope to see the repeal of SEC guidance that restricts banks from holding crypto in custody for clients. The administration has appointed pro-crypto regulators to acting roles in key agencies, including the FDIC and CFTC.
Industry Optimism:
Despite the absence of immediate executive orders, many in the crypto industry remain optimistic, citing the potential for future policy changes and personnel shifts. Coinbase CEO Brian Armstrong believes Trump supports a strategic bitcoin reserve.
Conclusion:
The establishment of the SEC cryptocurrency task force and the anticipation of executive orders have created a positive sentiment in the crypto market. Industry players are monitoring developments and testing the new administration's approach through initiatives such as ETF filings and continued advocacy.