Matt Hougan, chief investment officer of Bitwise, said on Wednesday that after Donald Trump won the U.S. presidential election, the development dilemma of the cryptocurrency industry has finally seen a light. He speculated that the new government will promote clarity in the regulatory environment and lead the way in crypto. The currency market has entered a "golden age".

Reversing SEC Hostility

Matt Hougan pointed out that he predicts that the first major change after the new Trump administration takes office is that regulatory agencies such as the U.S. Securities and Exchange Commission (SEC) will no longer adopt a hostile attitude towards the cryptocurrency industry.

In the past four years, the cryptocurrency industry has been trapped in a dilemma where its hands and feet are tied and unable to exert its influence at all.

Since U.S. SEC Chairman Gary Gensler took office, the agency has frequently used the method of "enforcement instead of regulation" to attack cryptocurrency companies, often filing lawsuits on suspicion of "selling unregistered securities", but has never clearly established regulatory provisions, allowing Many businesses feel at a loss.

Many people, including SEC Commissioner Hester Peirce, have criticized this approach as not only confusing the market but also stagnating the development of the entire industry.

Coinbase General Counsel Paul Grewal also recently broke the news that the U.S. Federal Deposit Insurance Corporation (FDIC) has repeatedly warned banks not to provide cryptocurrency services, causing many financial institutions to be afraid to get involved rashly.

The regulatory environment is expected to be relaxed and support industry development

Matt Hougan believes that based on Trump’s previous statements that he would support cryptocurrency and the friendly remarks he made during the campaign, the new government is expected to provide a more relaxed regulatory environment and may remove the SEC chairman to end the “stifling” Restrictive measures against cryptocurrencies such as Action 2.0.

If these regulatory changes are finally implemented, Matt Hougan believes that the cryptocurrency industry will attract more institutional investors to pour in, and may even accelerate cryptocurrency to become a mainstream asset, truly achieving an unhindered space for innovation.

Market fundamentals are solid and policy changes are just the icing on the cake

The cryptocurrency market has risen strongly in the past two days. Matt Hougan said that the fundamentals of these assets themselves are already very solid. Bitcoin ETFs have attracted more than $23 billion in capital inflows, and many institutional investments, including large hedge funds, have are also paying close attention.

In addition, the Bitcoin halving event in April 2024, practical application scenarios such as stablecoins and the prediction market Polymarket have provided a strong foundation for market growth, and the rising debt and potential interest rate cuts in the United States have also made Bitcoin It has become a "must-have asset" in the minds of many investors.

Choose potential projects carefully to avoid pitfalls

Even so, Matt Hougan emphasized that if support from the new government can be obtained, the market will obviously usher in another major bullish catalyst that will further push up cryptocurrency prices.

Although market optimism is high, Matt Hougan also reminds investors that it is not advisable to cast a net all over the sky and blindly chase the craze. He pointed out that although the policy environment will be improved, most cryptocurrency projects will still find it difficult to survive in the long term. As the industry matures, some projects may be eliminated. Therefore, it is recommended that investors carefully select potential projects.

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"Regulatory dilemma welcomes the dawn! Bitwise Chief Investment Officer: Trump will usher in a "golden era of cryptocurrency"" This article was first published on (Block Guest).