US President-elect Trump has nominated three key cabinet ministers, who will head the US Treasury, Commerce and Securities and Exchange Commission (SEC) respectively. These candidates are generally considered to be friendly to cryptocurrencies and are aware of the inevitability of digital assets in the modern financial system. Their nominations are expected to promote the further integration of cryptocurrencies into the US economy.
Ironically, the United States could be a beneficiary of MiCA. During Trump’s second term, his pro-crypto ministerial team is expected to focus on integrating cryptocurrencies into the U.S. economy to drive technological innovation and economic growth. The domestic debate in the United States has moved beyond establishing a regulatory framework to fully accepting cryptocurrencies as a driver of economic opportunity and technological advancement.
Trump's nominee for Secretary of Commerce, Howard Lutnick, CEO of investment bank Cantor Fitzgerald, has been an active advocate of Bitcoin. He compares BTC to gold and supports its unrestricted global trading. Scott Bessant, Trump's nominee for U.S. Treasury Secretary, is also a staunch supporter of BTC. He said: "The crypto economy will be widely accepted. These assets attract young people who have not participated in the market before."
While Treasury yields have risen from their low of 3.60% following the September FOMC meeting, they have fallen back after Scott Bessant was nominated as Treasury Secretary. This reflects market expectations of slower initial growth, in part due to a possible government restructuring and Bessant's proposals to reduce the U.S. budget deficit. If post-election campaign promises are implemented, the stimulative fiscal impulse seen in recent years amid a surge in government spending may be unsustainable - a key argument for buying Bitcoin in the current macro environment.
Building a strategic BTC reserve is increasingly likely. However, the U.S. may not actively purchase Bitcoin, but instead keep its existing holdings indefinitely.
The third key candidate Trump may nominate is Paul Atkins, an experienced cryptocurrency lawyer and potential candidate for chairman of the Securities and Exchange Commission (SEC). As a former SEC commissioner, Atkins has played a key role in shaping the cryptocurrency industry through his regulatory expertise and advocacy for balanced regulation. He has consistently stressed the need for clear guidelines for digital assets, warning that overly strict regulation could hinder technological innovation.
If the above nomination becomes a reality, the 2024 narrative - BTC as digital gold - may evolve into a renaissance of decentralized finance (DeFi), where traditional finance will increasingly integrate DeFi applications and blockchain technology to improve payment systems and transaction efficiency. Although clear regulations are expected, the digitization of the US financial economy may make cryptocurrency applications the biggest winner of this election. This shift may also force other national and regional governments to accept cryptocurrency, accelerating its global adoption.
While all eyes are on BTC, Ethereum could be catching up amid the decentralized finance (DeFi) resurgence.
Some of the above opinions are from Matrix on Target. Contact us to obtain the full report of Matrix on Target.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
