NYDIG Warns That Trump’s Promises to the Crypto Industry Could Take Time to Implement

Donald Trump’s upcoming inauguration marks the beginning of his presidency, and with it, he has pledged significant changes to cryptocurrency regulations. However, the New York Digital Investment Group (NYDIG) suggests that such reforms might not happen immediately.

Greg Cipolaro, NYDIG’s head of research, expressed caution in a recent research note, indicating that crypto policy updates are unlikely to occur right after Trump assumes office on January 20.

Cipolaro pointed out that while the transition to the new administration brings hope for action on campaign promises, some measures may require more time to implement. He noted that critical roles still need to be filled, nominees must navigate the interview process, and approved officials will then need to build their teams.

Certain legislative developments, such as regulations for stablecoins and a proposed measure to clarify the responsibilities of securities and commodities regulators in the crypto space, may also face delays. Cipolaro explained that the reenergized conservative legislature might adopt a less compromising stance than the previous liberal-led Senate.

“Priorities such as international conflicts, fiscal policies, tariffs, immigration, and trade negotiations are likely to take precedence over crypto-related matters and policies,” Cipolaro noted.

Trump’s nominees for leadership positions at the Securities and Exchange Commission (SEC), Treasury Department, and a virtual assets adviser for the White House have been viewed as favorable for the crypto sector. However, key appointments for agencies like the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, and the Office of the Comptroller of the Currency are still pending.

“While not all of Trump’s selections have been disclosed, the choices announced so far for influential agencies concerning Bitcoin (BTC) and cryptocurrencies are promising,” Cipolaro said.

One notable possibility during Trump’s presidency could be the introduction of a strategic BTC reserve. Cipolaro suggested that such a measure could be implemented relatively quickly through an executive order. He mentioned that a preliminary version of such a proposal, created by a Bitcoin advocacy organization, has already circulated on social media.

However, Cipolaro highlighted that an executive order can only offer a temporary solution, as it could easily be reversed by a subsequent administration.

He also noted that a U.S. strategic BTC reserve could potentially utilize the $18.3 billion worth of confiscated crypto held by the government. He added that while this approach might reduce concerns about the U.S. selling off its Bitcoin holdings, it wouldn’t necessarily increase market demand for the crypto.

The entire crypto industry, including enterprises like HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) (TSX.V: HIVE), will be watching to see how and when President Trump acts to actualize his many promises to the industry while he was campaigning and soon after winning the election for U.S. president.

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