Bitcoin prices have surged dramatically, fueling speculation about a potential $100 trillion market capitalization. The resurgence comes amidst a swirl of rumours surrounding former U.S. President Donald Trump’s anticipated return to the White House. His proposed crypto-related policies could be a game-changer for the industry.
Trump’s Day-One Crypto Plan
As Trump prepares for a possible second term, sources suggest he will issue several executive orders aimed at reviving the crypto market. Among these is the repeal of the controversial Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121 (SAB121). This policy currently requires banks holding crypto to classify it as a liability, a measure that has deterred institutional adoption.
According to insiders, Trump also plans to address “Operation ChokePoint 2.0,” a policy critics claim has pressured banks to sever ties with crypto firms. Repealing these restrictions could provide a significant boost to the industry, enabling smoother integration of crypto into mainstream financial systems.
The Role of Fair Value Accounting
The crypto market already celebrated a significant win last year when the Financial Accounting Standards Board (FASB) introduced fair value accounting for bitcoin. This update allows companies to reflect bitcoin’s current market value more accurately on financial statements, increasing transparency and encouraging institutional participation.
Combined with the approval of spot bitcoin exchange-traded funds (ETFs) by major players like BlackRock, the industry is primed for unprecedented growth.
Industry Leaders Rally Behind Change
Prominent figures like Michael Saylor, CEO of MicroStrategy, have been vocal advocates for these regulatory changes. Saylor believes the repeal of SAB121, alongside other recent developments, could propel bitcoin’s price to $5 million per coin.
Marc Andreessen, a venture capitalist and close associate of Trump’s crypto team, has also highlighted the potential of a pro-crypto administration. His recent appearance on Joe Rogan’s podcast helped bring these issues into the mainstream, further amplifying the calls for reform.
The Path to $100 Trillion Market Cap
If Trump’s policies materialise, the combined impact of regulatory clarity, fair value accounting, and widespread ETF adoption could unlock an unprecedented bitcoin price rally. Companies, banks, and institutional investors are expected to flood the market, driving prices to new heights.
While Trump’s vision for crypto still hinges on his return to power, the prospect of sweeping regulatory reforms has already ignited excitement in the market. Bitcoin’s current trajectory suggests the industry is ready to embrace these changes and reach new milestones.
As January 20 approaches, the crypto world watches eagerly, anticipating a potential seismic shift. Could this be the start of bitcoin’s path to $100 trillion? Time will tell.
