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Coinbase's Shirzad Sees Swift Crypto Legislation Under Trump & Pro-Crypto Congress

2024-12-02

Under President-elect Donald Trump's administration, Coinbase Inc. Chief Policy Officer Faryar Shirzad anticipates a swift passage of cryptocurrency legislation. This comes as Bitcoin BTC/USD prices surge to record levels, driven by expectations of a significant change in U.S. crypto policy.

Trump's Impact on the Cryptocurrency Industry

Trump's victory, combined with Republican control of Congress, has given a significant boost to the cryptocurrency industry. Bitcoin has surpassed the $99,000 mark, marking a remarkable milestone. His pro-crypto stance sets him apart from the current regulatory environment, with plans including establishing a national Bitcoin reserve and expanding the Commodity Futures Trading Commission's oversight of digital assets. Shirzad, in an interview with CNBC, emphasized the potential for rapid legislative action in 2025. He stated, "We have the most pro-crypto Congress ever in history, and an extraordinarily pro-crypto president coming into office. I think the combination should finally allow the 50 million Americans who own crypto to have their interests and voice heard in policy."During the election, the cryptocurrency industry demonstrated considerable political influence. Crypto-related political action committees raised over $245 million. According to the Coinbase-backed Stand With Crypto Alliance, nearly 300 pro-crypto lawmakers will take seats in the next Congress.Two crucial pieces of legislation are awaiting consideration: the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act. These bills aim to provide clear regulatory frameworks for digital assets and stablecoins.

The Incoming Administration's Regulatory Shift

The incoming administration is reportedly planning to transfer significant regulatory authority from the Securities and Exchange Commission to the CFTC, especially for Bitcoin and Ethereum ETH/USD spot markets. This move will have a profound impact on the oversight of a $2.24 trillion market segment. Current SEC Chair Gary Gensler, known for his strict enforcement approach towards crypto companies, will step down on Jan 20. MicroStrategy Inc. Executive Chairman Michael Saylor compared Trump's proposed national Bitcoin reserve to the Louisiana Purchase, highlighting its significance.However, some financial experts caution against excessive enthusiasm. Moody's Analytics Chief Economist Mark Zandi warned about potential risks to taxpayers due to crypto market volatility. The government currently holds approximately $20 billion in seized cryptocurrencies, which could form the basis of the proposed national reserve.

Price Action and Market Outlook

At the time of writing, Bitcoin was trading at $95,160, down by 1.93% over the last 24 hours, according to Benzinga Pro data. The cryptocurrency market remains dynamic, with various factors influencing its price movements. Traders are preparing for the final 2024 flourish, and Bitcoin's performance will be closely watched.In conclusion, the cryptocurrency landscape is undergoing significant changes under the Trump administration. The passage of relevant legislation and the shift in regulatory authority will shape the future of the industry. Traders and investors need to stay vigilant and adapt to these evolving circumstances.

The crypto world is in a state of excitement as XRP, the driving force behind Ripple's ecosystem, has witnessed a remarkable surge. It has now surpassed the USDT stablecoin and Solana in market capitalization, reaching a significant $135.37 billion and trading at $2.37, with a 25.57% increase since Monday. This has reignited discussions about its potential to challenge Ethereum's dominance, whose market cap stands at $441.46 billion.

XRP's Journey - A Crypto Market Game Changer

Speculation on XRP's Trajectory

Speculation is rife about XRP's future path. Enthusiasts believe it could rival Ethereum, given its current market position. A recent meeting between Cardano founder Charles Hoskinson and Ripple CEO Brad Garlinghouse has added to the buzz. There are also rumours of Garlinghouse being considered for a role as Donald Trump's potential crypto czar, which could further boost XRP's standing. However, the regulatory battle with the U.S. SEC continues to cast a shadow. The lawsuit that began in December 2020 has subjected XRP to intense market and regulatory pressures. Despite these challenges, XRP has managed to regain its pre-lawsuit valuation, reminiscent of its dominance before the SEC's 2018 classification of Bitcoin and Ethereum.

The Ripple case has unveiled internal SEC debates through the "Hinman emails," revealing disagreements over the speech's implications for other cryptocurrencies. While these revelations have fueled market optimism, XRP's regulatory status remains uncertain. Legal analysts predict the case could stretch into July 2025.

Sneaky Moves From Whales on XRP

Historically, significant spikes in whale-to-exchange transactions (marked by red circles) have closely aligned with XRP price peaks. This indicates that whales tend to move large amounts of XRP to exchanges to sell near local or cycle tops. The latest spike in whale-to-exchange activity coincides with XRP reaching a local price of around $2.3. This could suggest that whales are preparing for potential profit-taking or increased market activity. Such movements by whales can have a significant impact on XRP's price and market dynamics.

Understanding these whale behaviors is crucial for investors and traders in the crypto market. It provides insights into the market sentiment and potential price movements. As XRP continues to make waves, these factors will play a vital role in shaping its future.

Bitcoin's remarkable journey to record highs has captivated investors as the nation gears up for President-Elect Donald Trump's tenure. This phenomenon has raised numerous questions about the regulation of cryptocurrency on a global scale. Experts anticipate that clear regulations will soon be put in place, with Securities Exchange Commission nominees playing a crucial role.

Unraveling the Future of Bitcoin in a New Administration

Bitcoin's Global Impact

Bitcoin's ascent to record highs has not gone unnoticed worldwide. It has become a topic of intense discussion among investors and financial experts alike. The potential of cryptocurrency to reshape the global financial landscape is a subject of great interest. As President-Elect Trump prepares to take office, the attention on Bitcoin has only intensified. This has led to a flurry of questions regarding its regulation and future.There have been ongoing debates about how to effectively regulate cryptocurrency. Different countries have adopted varying approaches, and the uncertainty surrounding this has created a complex regulatory environment. However, experts believe that a more defined regulatory framework is on the horizon.

The Role of SEC Nominees

The appointment of new members to the Securities Exchange Commission is expected to have a significant impact on the cryptocurrency space. Jared Pincin, an associate professor of economics at Cedarville University, highlights the anticipation that these nominees will be more favorable towards crypto. This could lead to a loosening of regulations and a clearer understanding of how cryptocurrency should be regulated.Over the years, the question of what to regulate and how to regulate it has been a persistent concern. For instance, there is the debate over whether the IRS should regulate increases in Bitcoin's price as an investment or simply as an increase in currency. These questions have remained unresolved, but with the incoming Trump administration and the potential changes in the SEC, there is hope that answers will soon be found.

The Value Dilemma

When it comes to the value of Bitcoin, opinions vary. Jared Pincin believes that in the long term, it will either be widely accepted as a means of exchange like the US dollar or it will fade away. Currently, Bitcoin has experienced significant low points and more recently, reached a series of high points. Its value is subjective and depends on various factors such as market sentiment and investor confidence.Despite the volatility, there is a growing hope that cryptocurrency will become a part of consumers' everyday lives. Its potential to offer faster and more secure transactions has attracted the attention of many. However, for this to happen, a stable regulatory environment and wider acceptance are crucial.In conclusion, Bitcoin's journey to record highs and the upcoming changes in the regulatory landscape present both opportunities and challenges. As the world watches closely, it will be interesting to see how cryptocurrency evolves under the new administration.