Market Reactions to Trump’s Speech: A Crypto Perspective
Donald Trump’s recent actions towards cryptocurrencies, including his foray into launching a meme coin, prompted the anticipation of his comments on crypto in his inauguration speech. However, when Trump addressed the public, he notably omitted any reference to the cryptocurrency sector, leading to a sharp decline in Bitcoin’s value, which fell to approximately $100,000. This downturn triggered around $100 million in liquidations within the market.
Trump’s Omission on Crypto: Long-term Implications? 💭
In the lead-up to the inauguration, Trump garnered support from prominent figures within the cryptocurrency space by pledging to ease regulations that affect the industry. His promises included commuting Ross Ulbricht’s life sentence, countering the stance of the Biden administration against cryptocurrency, and opposing the implementation of a central bank digital currency due to privacy concerns linked to government oversight of financial transactions.
During his inaugural address, Trump’s focus remained on innovation without mentioning cryptocurrencies or related technologies. He emphasized American ingenuity, stating, “There’s no nation like our nation. Americans are explorers, builders, innovators, entrepreneurs, and pioneers. The spirit of the frontier is written into our hearts.”
In his outlined agenda, referred to as “President Trump’s America First Priorities,” published by the press secretary’s office, there was again no mention of digital currencies. Despite this, such omissions shouldn’t be interpreted as a complete withdrawal from support for the crypto market; Trump appears to maintain a favorable outlook on the sector.
Anticipated Moves: Executive Orders on Day One? 📝
Reports indicate that Trump may issue executive orders as soon as he assumes office, potentially establishing a new cryptocurrency advisory council, ensuring enhanced cooperation between companies and banks. Additionally, The Washington Post revealed that he may consider withdrawing the SEC’s disputed rules concerning crypto accounting that fall under SAB 121.
The silence regarding cryptocurrencies today, however, had immediate repercussions. Investors were quick to react, resulting in substantial liquidations within just one hour, pushing Bitcoin’s price down from $109,000 to the near $100,000 mark.
New Appointments in Crypto Oversight: Caroline Pham at the Helm 🎉
While Trump’s inaugural speech lacked commentary on cryptocurrencies, he seems to be taking strategic steps behind the scenes. His administration is actively appointing individuals supportive of the cryptocurrency industry to key positions. Recently, Trump named Caroline Pham, a prominent figure at the U.S. Commodity Futures Trading Commission (CFTC), as the acting chair. Pham received confirmation for her role from the CFTC’s five-member panel.
With a background in digital asset regulation and initiatives, Pham, who was nominated as a Republican by the previous president, has spearheaded multiple projects aimed at shaping the future of digital currencies. She played a pivotal role in establishing the Digital Asset Markets subcommittee and has been instrumental in advocating for a regulatory framework for digital assets. In addition, she has proposed innovative concepts such as a “regulatory sandbox” which would allow for the trial of new technologies, alongside launching pilot programs for digital assets.
Despite the excitement surrounding her appointment, the Trump administration and the CFTC have not yet officially confirmed the announcement.
On a related note, today saw the SEC’s Chair Gary Gensler part ways with the commission, marking a significant transition coinciding with Trump’s return to office. Gensler has held the position since April 2021, and his exit paves the way for potential shifts in the regulatory landscape for cryptocurrencies.
Hot Take: Future Outlook on Crypto under Trump 🔥
As Trump’s administration continues to appoint crypto-friendly individuals and prepares for significant executive actions, the overall sentiment towards the cryptocurrency market remains cautiously optimistic. The lack of mention in his speech does not signify a withdrawal of support but rather a strategic positioning for future initiatives that could reshape the regulatory environment for digital currencies. It is essential for stakeholders in the crypto space to stay informed and alert as developments unfold in 2023.
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