NYDIG: Trump’s commitment to encryption may still take time to come to fruition

Author: Martin Young, CoinTelegraph; Compiler: Wu Baht, Golden Finance

With just days left before Donald Trump's inauguration, the US president-elect has promised to overhaul cryptocurrency regulation, but New York Digital Investment Group says that may be premature.

Greg Cipolaro, global head of research at NYDIG, said in a January 10 research note that it is “cautious to expect immediate changes in cryptocurrency policy” even though Trump will be inaugurated on January 20.

Cipolaro said that while the inauguration has renewed hopes that the new administration will deliver on many of its campaign promises, "many of those promises may come soon, but some may take some time."

"Key officials still need to be appointed and those who have been appointed need to go through a confirmation process and once confirmed they need to call in staff."

Other important cryptocurrency legislation, such as rules governing stablecoins and a bill clarifying the role of securities and commodities regulators in regulating cryptocurrencies, “will likely take some time to pass” as re-energized conservatives and liberals Market legislators “may not be as willing to compromise on certain issues as they were when liberals controlled the Senate.”

" Implementation of these initiatives may be a priority, while issues such as geopolitical conflicts, budget and debt ceilings, global trade and tariffs, and immigration may be more pressing issues," he said.

Trump’s picks for the Treasury Department, SEC and White House digital asset advisers appear to be positive toward cryptocurrencies, but his picks for key positions at the Commodity Futures Trading Commission, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have yet to be announced.

“Trump’s picks haven’t all been announced yet, but from what we know so far about institutions related to cryptocurrencies and Bitcoin, we like what we’re seeing,” Cipolaro said.

Events affecting the fourth quarter of 2024. Source: NYDIG

One potential change could be the implementation of a strategic Bitcoin reserve, which Cipolaro said “could be accomplished quickly by executive order.”

He added that a draft of such an executive order has been drafted by Bitcoin advocacy groups and circulated on social media. However, Cipolaro said the executive order “will not be permanent and may be revoked by the next president.”

He said that a possible strategic Bitcoin reserve in the United States could come from the $18.3 billion worth of cryptocurrencies seized by the government.

“This alleviates concerns that the United States will become a seller of Bitcoin,” Cipolaro added. "But it won't create incremental demand."