The Future Of Crypto Regulation Under A Trump Administration: 'Headwinds Are Now Tailwinds'

Bernstein on Wednesday asserted that regulatory headwinds have transformed into tailwinds, following Donald Trump‘s victory in the U.S. presidential election.

What Happened: "The market is nowhere close to factoring in this shift," stated Bernstein in its report on Wednesday.

Bernstein's report points to specific regulatory changes expected to accelerate under a new administration, with a "crypto-friendly SEC and Senate banking committee" likely to bring the regulatory clarity the industry has long awaited.

"We expect a new regime of crypto rule-making," Chhugani added, anticipating progressive frameworks that address issues such as asset classification, broker/dealer regulations, and the ownership of crypto by banks.

The report also emphasizes that bipartisan support may drive faster progress on crypto legislation, despite political divides. Bernstein analysts foresee swift movement on a stablecoin bill and an industry structure bill for exchanges and broker-dealers.

This could provide clarity for private stablecoin issuers like Circle (CRYPTO: USDC) and Paxos, as well as U.S.-based crypto exchanges.

"This transformational shift is not priced in," the report notes, encouraging investors to capitalize on these changes as they unfold.

Also Read: Raoul Pal Urges Crypto Investors: ‘Do Not Use Leverage, Do Not Lose Your Mind’

Coinbase Inc. (NASDAQ:COIN) founder Brian Armstrong echoed these sentiments, celebrating the election of over 219 pro-crypto candidates. "Tonight, the crypto voter has spoken decisively across party lines," Armstrong said, expressing optimism about working with the new Congress to establish "clear rules of the road" for digital assets.

Bernstein further anticipates the Trump administration's pro-Bitcoin policies to impact areas like Bitcoin (CRYPTO: BTC) mining and national Bitcoin reserves.

The report suggests the U.S. may consider a sovereign Bitcoin reserve akin to gold reserves, positioning Bitcoin as a strategic asset.

Additionally, policies could encourage Bitcoin mining growth within the U.S., potentially integrating miners into energy and AI data center infrastructure.

What’s Next: As these regulatory shifts unfold, industry leaders will explore the broader implications at Benzinga's Future of Digital Assets event on Nov. 19.

Read Next:

• Bitcoin’s Future Under President-Elect Donald Trump: A Look At His Crypto Policies

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