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- Trump’s pro-Bitcoin stance and Q4 2024 market optimism drove Bitcoin’s 47.2% surge, yet significant crypto reforms face legislative delays.
- Strategic initiatives like a US Bitcoin reserve and “Made in the USA Bitcoin” underscore Trump’s vision, but uncertainties persist.
Donald Trump’s upcoming inauguration on January 20 has stirred conversations about the future of cryptocurrency regulations. The president-elect has often been vocal about his pro-Bitcoin stance, fueling expectations for a favorable environment for digital assets. However, Greg Cipolaro, global head of research at the New York Digital Investment Group (NYDIG), has warned against expecting immediate policy changes.
In a January 10 research note, Cipolaro highlighted the delays caused by pending nominations for key positions. Appointees require Senate confirmation, and once approved, they must establish their teams. Legislative challenges and competing priorities suggest significant crypto reforms may face delays as issues like the budget, global trade, and immigration take precedence.
Key officials still need to be named, those that have been named need to go through the confirmation process, and then once confirmed they need to assemble their staff,
The legislative hurdles and administrative priorities mean major crypto reforms might take a backseat to pressing issues like the budget, global trade, and immigration.
Trump’s influence on cryptocurrency became particularly evident during the 2024 presidential election, where his pro-Bitcoin stance boosted Bitcoin’s performance significantly. The report highlighted Bitcoin’s significant gains of 47.2% in Q4 2024, attributed partly to Trump’s victory and optimism surrounding a deregulated crypto environment.
A Shift in Crypto Legislation May Take Time
While there’s excitement over Trump’s potential to drive crypto-friendly initiatives, Cipolaro cautions that significant changes could be delayed. He highlighted that pending legislation, such as stablecoin rules and clearer definitions for securities and commodities regulators, could face obstacles in a Republican-led Congress.
A reinvigorated conservative and free-market legislature may be less willing to compromise on points,
Trump’s pro-Bitcoin cabinet picks have also drawn attention set to influence Bitcoin price in Q1 2025, as CNF already reported. His appointments for the Treasury, SEC, and a White House digital assets adviser are seen as encouraging for the crypto sector. However, key roles at the Commodity Futures Trading Commission and Federal Deposit Insurance Corporation remain unfilled, leaving uncertainties about the administration’s complete stance.
One idea gaining traction under Trump’s administration is the creation of a US strategic Bitcoin reserve. Cipolaro mentioned that a Bitcoin advocacy group has already drafted a proposal for such an initiative, with an executive order being one possible route. However, he added that this order “would be much less permanent” and could be overturned by future presidents.
A Pro-Bitcoin Agenda with Broader Implications
As we reported, Bitcoin’s impressive Q4 performance coincided with regulatory optimism, as the crypto market recorded $16.5 billion in spot Bitcoin ETF inflows. This surge reflects growing investor confidence in a Republican-led administration’s approach to decentralized financial assets. Furthermore, the election also saw the exit of key anti-crypto figures, further boosting market sentiment.
Cipolaro emphasized how a strategic Bitcoin reserve could potentially tap into the $18.3 billion in confiscated Bitcoin held by the US government. “That alleviates an overhang that the US would be a seller of Bitcoins,” he explained while pointing out that it wouldn’t create additional demand.
The Trump administration’s promises also extend to domestic Bitcoin mining, with a focus on boosting local production and reducing reliance on foreign operations. His vision for “Made in the USA Bitcoin” highlights a push for economic benefits through increased domestic capacity.
