Trump's New Cabinet Takes Frequent Actions, What Are the New Highlights in the Crypto Field?

[TL；DR]:

After Trump’s victory in the 2024 US election, the crypto market reacted quickly, with election concept coins falling, but BTC and compliant concept coins hitting new highs.

Trump and his new cabinet members hold a positive attitude towards cryptocurrency and promise to promote its development in the United States, which is widely interpreted by the market as long-term positive news.

Although there are still issues with implementing many crypto commitments, it is clear that only with clear policies, adequate regulation, and stable markets can the crypto industry achieve sustainable development and long-term prosperity.

Introduction

As the dust settles on the 2024 US presidential election and Trump returns to the White House, the formation of his new cabinet and policy direction are highly anticipated. Especially in the field of cryptocurrency, the series of actions taken by the Trump administration have been interpreted as positive, and cryptocurrency has thus embarked on a strong bull market.

This article will delve into the changes in the crypto market after Trump’s election, important crypto-related figures in the new cabinet, and prospects for Trump’s future crypto policies.

Trump is Elected, Causing a Surge in the Crypto Market

After the results of the 2024 US election were announced, the crypto market quickly reacted and sparked a wave of enthusiasm. The victory of Trump, who maintains a friendly attitude towards the crypto industry, is seen as good news for the industry. Market confidence has significantly increased, and investors have flocked in, driving crypto prices to continue rising. This is consistent with the outlook we made in our article “Trump Won the US Election, Will Crypto Market Embrace Bull Market Frenzy Again?”

According to data, after the news of Trump’s election came out, although election concept coins such as TRUMP and MAGA experienced a round of decline, mainstream tokens such as BTC benefited and rose to new highs one after another, with their prices breaking through the $100,000 mark, driving the overall rise of the counterfeit sector.

Recently, while celebrating Bitcoin‘s breakthrough of $100,000, Trump has also sent a positive signal to the global crypto industry, indicating that his government will strongly support the development of cryptocurrency.

Source: truthsocial.com

In addition, recently related compliance and RWA concept coins have led the market significantly, with the most eye-catching being Ripple (XRP), which has risen more than five times in a month, becoming the third largest market value token after BTC and ETH. Our previous article, “XRP Market Cap Once Surpassed SOL, What Happened?”, extensively discussed the long-standing judicial entanglement between Ripple and the US SEC. Interested readers can check it out.

Source: Gate.io

Overall, during the campaign, Trump repeatedly promised to implement more lenient policies to support the development of cryptocurrency and promote the United States to become a global leader in the crypto field after being elected. This commitment was further confirmed after being elected, greatly encouraging the crypto market.

As for Trump’s New Cabinet Team, SEC Chairman Highly Anticipated

During the formation process of Trump’s new cabinet, important figures closely related to cryptocurrency have attracted much attention. Among them, Musk, as the leader of the government efficiency department, has a business sector involving multiple crypto-related fields such as artificial intelligence and social platforms.

Friends familiar with the field of crypto are generally familiar with Musk. He holds an open attitude towards cryptocurrencies and has expressed his optimism towards digital assets such as Bitcoin in public multiple times. We will not elaborate further here.

This time, people are more focused on the appointment of SEC leaders and crypto-related leaders. First, Trump chose Paul Atkins, a digital asset advocate and senior financial regulator, as the chairman of the US Securities and Exchange Commission (SEC). After the news was announced, the crypto market experienced short-term gains.

Source: public information

As is well known, current SEC Chairman Gensler is a hardliner whose ambitious agenda has led to conflicts with Wall Street and the crypto industry, while Atkins believes that robust and innovative capital markets can meet investors’ needs and provide funding to drive the US economy to continue leading. Atkins is expected to review multiple rules and court enforcement actions under Gensler’s tenure, adopt a more moderate attitude towards cryptocurrency, and seek rule changes to promote capital formation.

In addition to the SEC chairman, the Trump administration has appointed David Sacks, a supporter of blockchain technology, as the White House head of crypto. Trump stated that Sacks will be committed to developing a legal framework that provides the clarity the crypto industry seeks to thrive in the United States. He will also guide the government’s policies in artificial intelligence and cryptocurrency, promoting the United States as a global leader in these two fields.

Source: public information

In addition to the three PayPal Mafia mentioned above (an informal term for a group of former PayPal employees), there are other important figures related to cryptocurrency in Trump’s new cabinet. For example, Scott Besant, as one of Trump’s chief economic advisors, strongly supports the development of cryptocurrencies, especially Bitcoin, and his recent statements also indicate the Trump administration’s positive attitude towards cryptocurrencies.

Entering A New Regulatory Era, the Crypto Field May Further Prosper

It is not difficult to see that the Trump administration’s support for the crypto sector continues past campaign promises and has not become a hollow promise.

In terms of Bitcoin, Trump plans to establish the United States’ technological high ground in the global digital economy by establishing a national strategic Bitcoin reserve and promoting the goal of becoming a Bitcoin mining powerhouse. He plans to reduce energy taxes for mining companies and provide tax incentives and special subsidies for companies using renewable energy to lower operating costs.

Source: stcn.com

After being elected, Trump promised to formulate more lenient policies to support stablecoins’ development, pushing them from existing local applications to a wider range of payment and settlement fields. He plans to develop a clearer regulatory framework for stablecoin issuers, allowing them to directly access the Federal Reserve’s payment , and hopes to optimize international trade payments through stablecoin technology.

In addition, Trump promised to repeal the SEC’s accounting statement SAB 121 issued in 2022, a heavy financial burden for crypto custody platforms and exchanges. Trump believes that this policy not only burdens businesses with unnecessary costs, but also severely restricts the competitiveness of American companies in the crypto field. Abolishing SAB 121 is expected to provide a more favorable business environment for crypto companies and promote the rapid development of the industry.

Of course, the Trump administration’s crypto policy also faces some challenges and uncertainties. For example, how to balance the relationship between regulation and innovation, and how to respond to market fluctuations and risks all require the government to seriously consider and solve them. In addition, it is necessary to monitor the impact of changes in the international situation on crypto policies and adjust policy directions in a timely manner to adapt to the new market environment.

In short, the crypto industry can only achieve sustainable development and long-term prosperity with clear policies, effective regulation, and stable markets.