Regulation
Crypto Political Bull Run: A turning point for crypto regulation
With the general approval of the ETH ETF, politics is playing a larger role in crypto. Conversely, most US senators voted in favor of a cryptocurrency regulation bill co-prepared by Senator Cynthia Lummis.
In a series of recent X-rated posts, crypto analyst Miles Deutscher highlighted several significant market events over the past week, suggesting they could mark a major shift in market dynamics. He believes 2024 could be a big year for crypto, driven by major policy and regulatory changes.
Here’s why: the year 2024 of crypto
Trump’s Bullish View on Crypto
Trump has strongly supported the cryptocurrency sector on social media, affirming his commitment to creating a pro-cryptocurrency environment if re-elected. He emphasized the need for the United States to become a leader in the crypto sector. He criticized President Biden’s administration for its mishandling of the crypto space, suggesting Biden is aiming to kill the industry.
Surprise approval of Ethereum ETF
Shortly after Donald Trump embraced crypto, an unexpected ETF approval arrived. ETFs allow investors to purchase shares representing ownership of Ethereum, making it easier for small traders to invest in the crypto market.
The adoption of the FIT21 bill
Next is the FIT21 bill, recently passed by the U.S. House of Representatives. This bill aims to create a more structured and clearer regulatory framework for cryptocurrencies. This is seen as a positive step towards resolving the regulatory uncertainty that has long plagued the crypto sector.
Biden Administration Crypto Policy Changes
Meanwhile, the Biden administration’s recent actions suggest a change in its stance on cryptocurrency. The SEC approved Ethereum ETFs and the House passed the FIT21 Act, indicating a warmer regulatory climate. These measures appear aimed at gaining support from pro-crypto voters ahead of the election.
Anti-CBDC bill approved
A new anti-central bank digital currency (CBDC) bill has been passed, signaling concerns about government-controlled digital currencies. This suggests that people like Bitcoin and Ethereum more because they are decentralized and not controlled by governments.
Political bull run, or is there a twist?
Deutscher’s analysis suggests these events could lead to a “political bull run” in 2024. By publicly supporting cryptocurrencies, Trump and Biden can mobilize a broad base of voters, showing that crypto is being adopted on a wider platform.
However, Bitcoin supporter Samson Mow is not. optimistic about politicians getting involved in crypto. He believes this could harm Bitcoin. Mow warned that without adhering to Bitcoin’s fundamentals, problems such as the collapses of FTX, Luna and Genesis could recur, leading to significant financial losses.
Do you think involving politicians will benefit or doom crypto?