Emily Walker
The cryptocurrency community is uniting in anticipation of Donald Trump’s inauguration on January 20, seeing it as a pivotal moment that could change the regulatory landscape shaped by the Biden administration.
Many industry participants are hopeful that the incoming administration will create a more favorable atmosphere for cryptocurrencies and blockchain advancements.
Expected End of Debanking Could Boost Crypto Industry
According to the New York Post, Trump’s presidency is stirring optimism among industry leaders regarding policy changes that may legitimize cryptocurrency.
Immediate executive actions may lead to the creation of a Bitcoin reserve and the termination of debanking practices, where banks have previously shunned clients involved in cryptocurrency.
The predicted halt on debanking is considered essential for the industry’s recovery, allowing banks to engage once again with digital assets, a practice they were discouraged from in recent times.
During Biden’s tenure, the crypto sector faced what many termed regulatory “harassment.” Efforts like “Operation Chokepoint 2.0” were designed to limit banks’ interactions with crypto firms, which negatively impacted startups and innovation.
Investors like Nic Carter and Marc Andreessen described these measures as a form of “privatized sanctions,” forcing numerous crypto businesses to either move operations overseas or entirely abandon their plans.
Carter emphasized that banks seldom explain their debanking decisions, which often hinge on vague reputational risks. This lack of clarity severely hampered the industry, leading to difficulties for nascent companies trying to establish themselves.
Proposed America-First Reserve Could Exclude Bitcoin
While the anticipated pro-cryptocurrency measures from the new President are welcomed, a particular proposal has sparked controversy: the notion of an America-first reserve that emphasizes U.S.-based digital currencies like Solana and XRP.
Reports suggest that President-elect Trump has communicated with the founders of these cryptocurrencies, indicating he may be open to this idea.
Nonetheless, there are worries that prioritizing coins like XRP and Solana might diminish support for Bitcoin, which many see as a fundamental element of the cryptocurrency ecosystem.
As of now, XRP has surged to its highest price point in seven years at $3.20, experiencing a notable 16% increase in just 24 hours.
Image courtesy of CNBC, chart from TradingView.com