Opinion
After the return of US President Donald Trump, Coinbase witnessed that the Securities and Stock Exchange Committee is declining a lawsuit for 2023, as well as the closure of the RobinHood Crypto investigation. On February 25, the Supreme Education Council ended the Federal Investigation of UISWAP laboratories, which led to market declines with Coinbase and Bitcoin (BTC), which the latter fell from its peak 109,114 dollars to $ 87,000, which represents a remarkable decline of 20 %. There is no clear reason on the horizon, but the general logic of the reaction of investors is understandable: it is not keen on the inability to predict and is usually concerned with the market more than specific companies.
The reason for SEC has dropped all these cases less important than answering what this tells us about Trump's presidency. The fact that the Trump administration has received encryption donations does not help. Let's remember how Coinbase and Robinhood have had She donated TrumpWith uniswap also sharing in Crypto Super Pac, Fairshake, at a value of $ 116 million.
Is the above signal to investors that donations have been accepted, or is it just a coincidence? Is this a warm welcome from Washington for encryption in general? Fortunately, there is a Litmus test to determine where the Trump presidency is on the encryption that the industry may appreciate very. If his administration takes three steps, this may be evidence that they can encrypt and take care of the market.
CFTC is set by organizer or turning in SEC mode on symbolic securities
SEC on symbolic securities is essential, as the committee indicates its intention to appoint most symbols as securities under the previous leadership. This appointment means that you may be in danger: even if you are not directly released directly symbols, but instead developing a technical solution that interacts with distinctive symbols or trading, there may be complications – the ongoing legal risks associated with potential participation with unregistered securities. This is still a busy barrier to encryption.
It can also be changed by the CFTC. The company's success was an important factor in the distinctive symbol price, and the classification of the symbol was not a security in the hands of the company. However, if CFTC weakens the regulations, there may be significant effects on companies in the United States, which may be more likely to participate in encrypted currencies. Disadvantages will be kept close to any steps taken by CFTC.
recently: SEC rejects the lawsuit against Crypto Exchang Coinbase
Cut, CFTC does not organize encryption or has such strength. The transfer of judicial authorities by encryption to CFTC will be a strong signal for a major supporter of profit for the new administration. As a small and less aggressive organizer, CFTC is less likely to follow up on the organization through implementation, and therefore it is likely to adopt a more cooperative attitude towards industry. As a result of any of these two development, the massive US encryption companies will be eliminated in US risk, thus opening a set of innovative encrypted projects that enter the profitable US market.
Stablecoins adoption
Stablecoins adoption is also expected to increase the growth of encryption payments, which will benefit from small and medium -sized companies (SMBS). Small and medium -sized companies that start using encryption payments tend to shift to Stablecoins first, so these companies must clearly understand the legal background regarding Stablecoins. It is not enough to use foggy legislation that was not intended for Stablecoins. Instead, they need a well -specific working framework to bring clarity to the organization.
What is the result of a better organizational approach? More confidence. Companies will enjoy more certainty in moving from Stablecoin to Crypto. And most importantly, with more encryption companies merged, more opportunities for American encryption companies will appear. To facilitate this positive course, a dedicated legislative framework that recognizes stablecoins is needed as a legitimate payment means. Direct organizational supervision, confidence in reserves, and risk management for Stablecoin Exporters will enhance confidence.
The role of Fincen in bank encryption assets
Another point of adhesion is the problems facing encryption companies when opening bank accounts. Even when they run it, they face high costs and fees for service as banks see great risk of money laundering in the encryption sector. This frequency of the encryption service is ridiculous: industry aims to create an alternative payment system but still depends on traditional banking services.
In order to expand the ecosystem for encryption, financial institutions must start providing services to entities related to encryption. It is also clear that progress will remain limited without the participation of traditional banks. The key to change can be the Fincen Inclusion Network. If this office takes steps to review the risk evaluation of the encryption companies, the banks will set their evaluations accordingly. Financial institutions will be more willing to work with encryption companies.
The encryption path forward
How will the encryption in the United States be revealed away from being: the Trump administration has accepted some encrypted donations, but the continuous uncertainty in the market. By monitoring the activities of CFTC and Fincen, as well as positive transformations in Crypto, a better vision of this government's position towards the sector may appear. It is always difficult to distinguish it, these three areas can give us an insight into Trump's true intentions towards encryption organization in the United States.
Opinion: Ross Shimeliak, co -founder and head of operations at Stopox.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.