Trump shows he's open to regulation and is warming up to Bitcoin

This month, Bitcoin (BTC-USD) has been stable for almost ten sessions in a row at $51,000. Following a roughly 93% price surge for Bitcoin over the previous six months, there has been consolidation. Conversely, Ethereum (ETH-USD) has barely increased by 5% this week.

Numerous equities with a focus on cryptocurrencies have continued to show consistent growth since spot BTC ETFs were approved. Over the course of the previous month, the shares of Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA), and Coinbase (NASDAQ:COIN) have increased by around 51%, 52%, and 38%, respectively. However, given that Cathie Wood's ARK Investment recently sold COIN shares for $150 million, it appears that profit booking may be taking place.

Donald Trump, the former president, has recently demonstrated a significant change in his attitude towards Bitcoin, departing from his previously critical perspective on cryptocurrencies.

The shift was most noticeable when he appeared on Fox News' "The Ingraham Angle," where he recognised that, despite his continued affinity for the dollar, Bitcoin is becoming more and more popular, especially among young people and African American groups.

Trump's circumspect comments suggest that he is amenable to Bitcoin's decentralised structure, even though he does hint at the possible need for government regulation. As you know, it's taken on a life of its own. You probably need to implement some regulations, as you can see," Trump said, referring to the cryptocurrency's growing popularity and growing integration with payment systems.

"A lot of people are accepting it. And more and more, I'm seeing people asking to pay [with] Bitcoin," he continued, underscoring the increasing popularity of the virtual money.

This is a major change from Trump's earlier views from 2021, when he was vocal in his criticism of Bitcoin and cryptocurrencies in general, calling them “based on thin air” and even a “scam” that competed with the currency. Over the years, his worries have mostly focused on the dangers of cryptocurrencies, such as their volatility and ability to support illegal activity.

However, Trump’s recent actions and statements paint a complex picture of his engagement with the digital currency space. Despite his criticisms, he has actively participated in the cryptocurrency market, launching three NFT (Non-Fungible Token) collections, with the ‘Mugshot Edition’ being the latest in December 2023. These ventures, alongside his decision to liquidate Ethereum (ETH) worth millions from NFT sales, illustrate a more pragmatic approach to the evolving digital asset landscape.

Trump's changing views on Bitcoin and other cryptocurrencies might have a big impact on the market, especially given US regulatory laws. A Politico piece from January 8th made the assumption that if Trump were to win in 2024, regulations would shift to benefit the cryptocurrency sector. Reputable individuals such as former Comptroller of the Currency Brian Brooks and House Majority Whip Tom Emmer have suggested that Trump's "anti-establishment" stance may result in a more lax regulatory framework for cryptocurrencies.

Furthermore, Trump has voiced strong opposition to the creation of a digital currency issued by the US central bank (CBDC), citing worries about possible government overreach and the consequences for individual liberties. Trump has made it apparent that he opposes the establishment of a CBDC, emphasising the need to preserve Americans' financial independence and the perils of government tyranny. This position is similar to that of previous presidential contender Vivek Ramaswamy.

The difference between Trump's previous and current statements highlights a larger story about adjustment and reexamination in the ever-changing landscape of digital finance. His early rejection of Bitcoin as a workable currency and his worries about its effects on the financial system stand in stark contrast to his present acknowledgement of the cryptocurrency's expanding popularity and possible regulatory requirements.



According to CoinMarketCap data, at the time of writing, BTC was trading at $51,050, up 0.35% over the previous day. edited by sunita