Trump could positively influence crypto regulation
Institutional interest and practical applications are growing
Alert for selectivity in cryptocurrency investment
Donald Trump’s recent primary victory has been seen as a precursor to a potential shift in cryptocurrency regulatory policies, according to Matt Hougan, CIO of Bitwise. With significant changes expected in the first 100 days of a new administration, the outlook for the sector looks promising.
”
We are entering the golden age of cryptocurrencies
“, Hougan said, noting that until now, the industry had been operating with significant restrictions, symbolized by “one or maybe two arms tied behind its back,” in his words, due to the SEC’s strict enforcement actions and a scenario of regulatory uncertainty.
Even before the election, the cryptocurrency market was already showing signs of strengthening, with an additional $23 billion in net inflows into Bitcoin ETFs this year alone. The market was also buoyed by the Bitcoin halving in April, growing interest from institutional investors, and the expansion of practical applications for stablecoins, prediction markets, and blockchain-based gaming platforms.
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Another critical point raised by Hougan is the continued rise in U.S. government debt, which has reached the $36 trillion milestone, increasing at a rate of $1 trillion every 100 days. He expects this trend to continue under the next administration, which could have a positive impact on cryptocurrencies as an investment alternative.
Finally, Hougan was keen to commend the industry pioneers who have persisted in championing cryptocurrencies despite the regulatory challenges they have faced, playing a key role in reaching this watershed moment.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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