With Donald Trump coming to power for a second time in the US, cryptocurrency companies can hold public offerings much more easily than they can today.
According to a report by Barron’s, the election of Donald Trump as the US president is raising expectations for a looser cryptocurrency regulation. This change could open the door to initial public offerings (IPOs), especially for crypto companies like Circle and Kraken.
SEC and cryptocurrency companies
Before the Trump administration, the SEC had been cautious about cryptocurrency companies filing for IPOs. Strict regulations, particularly on stablecoins and other crypto assets, limited companies’ access to the financial markets. However, the new administration is expected to provide more flexibility to the industry by loosening these regulations.
Expectation of change in cryptocurrencies
Stablecoins are an area that has been under close scrutiny by regulators in particular. Barron’s notes the potential for the Trump administration to loosen restrictions on stablecoins, which could pave the way for innovation and investment in the crypto ecosystem.
Stay tuned.