Title: Donald Trump’s Pro-Crypto Stance Could Lead to Major Legislation Changes in the US
In a recent note, Compass Point Research & Trading highlighted how Donald Trump’s return to the White House could positively impact the cryptocurrency and digital asset sector. The firm pointed out that Trump is supportive of crypto, as evidenced by his campaign accepting crypto donations.
During a meeting with crypto miners last month, Trump discussed how the crypto industry could benefit U.S. energy production, distribution, AI development, and data centers. He also expressed a desire for all BTC mining to occur in the U.S. His pro-crypto stance has been integrated into the Republican National Committee’s 2024 Platform, which aims to end the crackdown on crypto and prevent the development of a CBDC.
Trump’s selection of Senator J.D. Vance as his Vice-President candidate further solidifies his pro-crypto stance. Vance has been working on draft legislation to address crypto regulation by the SEC and CFTC, which is considered more industry-friendly than existing legislation.
Compass Point noted that under a Trump/Vance administration, the chances of crypto legislation becoming law would significantly improve. With bipartisan support for FIT21 and the potential for broader crypto legislation, there is an expectation that comprehensive crypto legislation could be enacted into law in 2025 or 2026.
Bipartisan support is seen as a crucial factor in improving the outlook for crypto policy. Senate Agriculture Committee Chair Debbie Stabenow is working on a draft crypto bill to give the CFTC authority over digital assets, with the goal of voting it out of committee before the August break.
Looking ahead to 2025, a Trump administration with a Republican-controlled Congress would have a two-year window to pass crypto legislation. The passage of FIT21 and Stabenow’s efforts to move a bill out of committee indicate a shifting landscape that favors comprehensive crypto legislation.
A change in administration could also bring a new SEC Chair who is supportive of crypto, potentially leading to a halt in enforcement actions and the resolution of outstanding cases. This change could define the parameters of when a digital asset is considered a security.
In conclusion, Donald Trump’s pro-crypto stance and potential return to the White House could lead to significant changes in crypto legislation in the U.S. Investors and individuals in the crypto space should keep a close eye on developments in this area, as it could have a profound impact on their finances and the overall crypto market.