The specter of trade wars with some of this country’s largest trading partners has been a drag on bitcoin in recent days. That’s plagued crypto-correlated stocks in the process. But optimism remains that President Trump will make good on his campaign promise to unleash crypto innovation in the U.S. and shed regulations that hinder the industry.
One of the big pledges Trump widely discussed is the possibility of creating a domestic bitcoin strategic. That’s sparking the digital currency itself as well as ETFs like the CoinShares Valkyrie Bitcoin Miners ETF (WGMI ).
The White House “Crypto Czar,” David Sacks — an occupant of a newly created, crypto-centric position —reiterated the view that establishing a bitcoin reserve remains an early priority for the Trump administration. Sacks also backs the idea of creating a U.S. sovereign wealth fund. But media reports suggest he stopped short of saying such a fund would be a bitcoin investor.
Government Catalysts for Bitcoin
The bitcoin reserve could be a catalyst for the asset, WGMI, and the broader cryptocurrency universe. But the issue could try investors’ patience. Same goes for the 16 states mulling legislation to allocate some public money to crypto.
The point is government moves slow and that’s often to the dismay of investors who want results right now. That’s particularly true of market participants that want to see WGMI and other equity-based, crypto-correlated assets rebound. There are other catalysts out there, including efforts to liberalize crypto regulatory oversight.
Sacks “said the previous four years were marked by regulatory uncertainty, leading to the offshoring of crypto innovation. Sacks added that the Trump administration aims to reverse this trend by creating a structured regulatory environment that differentiates compliant businesses from fraudulent actors,” reported Gino Matos for Crypto Slate.
One step in the right direction is the creation of a cryptocurrency task force at the Securities and Exchange Commission (SEC), which will be led by Hester Peirce. She is an ardent supporter of bringing more regulatory clarity to the crypto universe.
“Peirce emphasized that the SEC’s handling of crypto over the past decade has been inconsistent, leading to ongoing litigation and uncertainty among market participants. The task force will work across regulatory agencies and with Congress to define clear rules,” according to Crypto Slate.
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