Crypto investors and industry insiders are hopeful as Donald Trump prepares to take office as the 45th President of the United States on January 20. They anticipate his administration will champion innovation-friendly regulations, potentially setting a new tone for the cryptocurrency sector in the world’s largest economy.

Expectations are high regarding Trump’s pick for the new Securities and Exchange Commission (SEC) chair, Paul Atkins. Known for his market-friendly stance, Atkins’ potential appointment has sparked optimism among industry experts.

Anticipating Innovation-Friendly Policies

President Trump has previously expressed support for fostering crypto innovation within the United States. However, establishing meaningful and comprehensive regulatory frameworks takes time, according to Anastasija Plotnikova, co-founder and CEO of Fideum, a regulatory and blockchain infrastructure firm.

“Setting the right regulatory tone is crucial,” said Plotnikova. “The first week might not bring drastic changes, as meaningful legislation takes time to craft and implement.”

Plotnikova remains optimistic about Atkins’ potential leadership. “I’m hopeful that Atkins and the new administration will take a balanced approach to foster innovation in the crypto space while ensuring proper oversight. It would be a great signal for the industry as a whole,” she added.

Executive Order on Crypto: Day One Priority?

Speculation is rife that Trump could issue an executive order related to cryptocurrency on his first day in office. Industry watchers expect such an order to prioritise collaboration between regulators and industry participants, potentially by establishing a crypto council to address policy needs.

Reports suggest that the executive order may also address challenges such as crypto de-banking. Dmitrij Radin, founder of Zekret and chief technology officer at Fideum, believes Trump is likely to make a statement on crypto early in his presidency.

“With Trump and Atkins in the mix, I’m confident we’ll see some form of statement on day one, if not a full executive order,” Radin said. “Trump likes to make a splash, and what better way than to position himself as the ‘crypto president’ he promised to be?”

Radin added that while an immediate executive order is unlikely, an early directive establishing a task force or ordering a review of the regulatory landscape could signal the administration’s commitment to crypto policy.

BITCOIN Act and Its Implications
Among the key legislative priorities under the Trump administration could be the much-anticipated BITCOIN Act. Championed by Wyoming Senator Cynthia Lummis, the proposed bill aims to create a strategic Bitcoin reserve for the United States.

If passed, the BITCOIN Act could have a transformative effect on Bitcoin’s valuation. Adam Back, co-founder and CEO of Blockstream, predicts Bitcoin could eventually surpass a $1 million price tag if the legislation gains approval.

However, Back cautioned that significant capital inflows would be required to achieve such a milestone. “Bitcoin would need an additional $2 trillion in market capitalisation just to hit $200,000,” he explained. This would see Bitcoin surpass Apple’s $3.7 trillion market cap to become the world’s second-largest asset.

A Balancing Act for the Crypto Sector
While the crypto community remains optimistic, the road to regulatory clarity is likely to be a gradual process. Early signals from the Trump administration, including Atkins’ potential confirmation and initial directives, will be closely watched by investors and policymakers alike.

Trump’s first week in office could mark the beginning of a new era for cryptocurrency regulation, with the potential to shape the industry’s future on both national and global stages.