Key Points Selected
1. SEC Chair Gary Gensler announced he would resign in January 2025, potentially triggering a reshuffle of SEC regulatory policies, which could have a profound impact on the cryptocurrency industry.
2. Trump steadily advances the Bitcoin strategic reserve plan, including establishing a cryptocurrency advisory committee, creating a White House cryptocurrency affairs position, and building a cryptocurrency payment platform.
3. Trump's policy plans have started to impact the cryptocurrency market, referred to as the 'Trump Trade,' signaling optimistic expectations for favorable policies that may change Bitcoin's status in the global financial market.
4. The cryptocurrency market faces significant challenges, needing to balance regulation and innovation, with investors needing to be vigilant and monitor the potential impact of policy changes on the market.
Today (November 22) early morning, SEC Chair Gary Gensler tweeted that he would resign from his position in January 2025. His agenda during his term includes climate risk disclosure, stock trading reform, and combating violations in the cryptocurrency industry.
Since taking office as SEC Chair in 2021, Gensler has been known for his strict regulatory stance towards the cryptocurrency industry. He has repeatedly emphasized a cautious attitude towards cryptocurrencies, especially regarding investor protection and market manipulation issues. Gensler's departure may signal a reshuffle of regulatory policies within the SEC, which could have profound implications for the cryptocurrency industry.
This news is undoubtedly seen as a positive signal for the cryptocurrency market. Qinbafrank tweeted, 'The SEC has largely dominated the ultra-high-pressure regulatory environment for cryptocurrencies over the past two years, and everyone should be able to breathe a sigh of relief,' believing that 'a friendly and innovative cryptocurrency industry environment, along with relaxed regulatory conditions, is on the way for the next few years.'
Trump stated as early as July this year at the Bitcoin 2024 conference in Nashville that if elected president, he would fire current SEC Chair Gray Gensler on his first day and ensure that every Bitcoin-related job remains in the United States.
According to informed sources, key figures including former SEC Commissioner and Robinhood Chief Legal Officer Dan Gallagher, former SEC Commissioner Paul Atkins, and Wilkie Farr & Gallagher partner Robert Stebbins may be appointed as SEC Chair. Daniel Gallagher currently works at the fintech company Robinhood and has previously been a Republican donor, criticizing the SEC's 'scorched earth policy' in the cryptocurrency sector.
Peirce and Uyeda criticized their agency's policies and enforcement actions under President Joe Biden. Peirce is considered a potential candidate for interim SEC Chair after Trump takes over the White House, and rumors suggest she may lead a federal cryptocurrency policy task force.
Trump steadily advances the Bitcoin strategic reserve
Trump first mentioned the Bitcoin strategic reserve on July 27, 2024, stating at the Bitcoin 2024 conference held in Nashville, Tennessee, that if he returns to the White House, he will classify Bitcoin as a strategic reserve asset for the United States, and the latest news confirms his commitment.
Plans to establish a cryptocurrency advisory committee
Reports indicate that Trump plans to establish a cryptocurrency advisory committee, specifically responsible for promoting cryptocurrency legislation, coordinating multi-agency regulation, and implementing a Bitcoin reserve plan. Notable cryptocurrency companies such as Ripple, Kraken, and Circle are vying for seats to exert greater influence in this emerging field. According to reports, the committee may be affiliated with the White House National Economic Council or exist as an independent agency, further elevating the status of cryptocurrency within the U.S. government. Trump has promised to adjust existing regulatory policies to support the cryptocurrency industry.
Dedicated White House position for cryptocurrency affairs
Yesterday (November 21), reports emerged that Trump’s team is considering creating a position in the White House specifically responsible for cryptocurrency affairs. According to U.S. political circles, the person in this position is referred to as the 'Cryptocurrency Czar.' The Trump-led U.S. federal government may elevate the cryptocurrency industry to unprecedented heights. The Trump team is reviewing potential candidates, and if implemented, this would be the first position responsible for cryptocurrency in the White House's history.
Plans to establish a cryptocurrency payment platform
Trump Media Technology Group applied for a service called TruthFi on Monday (November 18), describing it as a platform for cryptocurrency payments. The company’s trademark application for Truth Fi describes it as a platform for financial custody services and digital asset trading—NYT.
What will be the market performance following the Trump Trade?
The impact of Trump's policy plans on the cryptocurrency market has already begun to manifest. Since Trump's election announcement, the overall market value of cryptocurrencies has increased by over $800 billion, with Bitcoin prices surpassing historical highs, reaching $98,000 at one point. This surge is referred to by industry insiders as the 'Trump Trade,' reflecting market optimism about favorable policies that may emerge from the Trump administration.
Jeffrey Ding of HashKey Group pointed out that after Trump's election, Bitcoin received significant policy support, including inclusion in government reserves and the establishment of a presidential advisory committee. These initiatives will create a more favorable market environment for Bitcoin and widen its upward space. Additionally, the current loose monetary policy also supports the rising demand for high-risk assets like Bitcoin.
The current performance of the 'Trump Trade' is multi-dollar, multi-Bitcoin, short U.S. bonds, while gold rapidly declines. Yang Tianxia, CEO of Variant Perception, stated, 'The market should be very optimistic about Trump overall, leading to rising yields, a rising stock market, and a stronger dollar,' and indicated that once Trump officially takes office in January, and policies are implemented, there may be another 'time window.'