Well now, gather ’round, folks! It seems that under the grand ol’ Trump administration, the world of crypto is galloping along faster than a jackrabbit on a date. The good ol’ United States has taken the reins, shaping the crypto market like a potter with a lump of clay, all while keeping an eye on regulations and the economy. Why, the crypto market is now dancing in step with the stock markets, as if they were partners at a barn dance, reflecting the growing interest from the big money folks and their sensitivity to the economic winds. HTX Ventures has put together a report that dives into the nitty-gritty of President Trump’s crypto policies and how the good ol’ US dollar liquidity is stirring the crypto pot.
Curious about the Trump-era policies and what’s fueling the crypto growth? Download the full report here!
How regulation is reshaping crypto market cycles
Now, let me tell you, legalization and dollarization are the wind in the sails of this crypto ship. Bitcoin, bless its heart, is the star of the show, acting as a golden key for institutional capital through ETFs, which is like giving the US crypto industry a shiny badge of legitimacy. The adoption of crypto in the US is expected to keep the good news rolling in like a freight train.
As we look ahead, the evolution of US crypto policy is likely to stretch across the entirety of Trump’s second term. There are whispers of financing large-scale Bitcoin purchases, reminiscent of the gold rush during the Great Depression. Now that’s a fiscal maneuvering act that would make a circus performer proud! These measures might even involve some creative accounting to justify monetary stimulus, just like in the good ol’ days of 2008 and 2020. But hold your horses, folks! The US hasn’t set aside a budget for sovereign Bitcoin purchases just yet.
Curious about the Trump-era policies and what’s fueling the crypto growth? Download the full report here!
How the Strategic Bitcoin Reserve could change everything
Unlike the past cycles that were driven by the ICO boom of 2017 or the DeFi Summer of 2020, this current cycle is being propelled by a regulatory shift. The SEC is showing a friendly face towards crypto, and the proposed Strategic Bitcoin Reserve is like a cherry on top of this crypto sundae.
The crypto market is now more in tune with global macro trends, much like tech stocks in their long, stable cycles. Bitcoin is showing a stronger bond with traditional financial markets, and the volatility is as low as a snake in a rabbit hole.
Institutional investors have taken the wheel, driving Bitcoin’s price movements like a bunch of kids in a candy store. Just look at the open interest in CME Bitcoin futures, which has skyrocketed from under $4 billion to a steady $10 billion, with peaks soaring above $20 billion. Talk about a rollercoaster ride!
But beware! CME’s open interest might be puffed up by institutional investors using leverage to cash in on the spread between spot ETFs and futures. If these positions unwind, we could see some sharp price drops that would make your head spin!
Trump’s crypto policy execution
Recent policies under the Trump administration have kicked the institutionalization of cryptocurrencies into high gear. The repeal of SAB 121 has allowed traditional financial institutions to offer custodial services for crypto assets. Citibank is sniffing around the opportunity to add crypto custody, while JPMorgan Chase is planning to offer crypto investments to its clients through a third-party custodian. Ain’t that a hoot?
The FIT21 bill and executive actions around stablecoins are laying the groundwork for long-term regulatory clarity. FIT21, though still in the oven, is setting the stage for how we classify digital assets. It’s like splitting hairs between the SEC and the CFTC, depending on how decentralized a token is. Highly decentralized tokens go to the CFTC, while the more centralized ones stay under the SEC’s watchful eye.
The future looks bright for the crypto industry, folks! While the US Strategic Bitcoin Reserve has been established, the active purchases of Bitcoin haven’t kicked off yet, suggesting that a key growth catalyst might still be lurking just around the corner.
Meanwhile, stablecoin legislation is expected to move faster than a cat on a hot tin roof. The proposed GENIUS Act aims to create a comprehensive regulatory framework for dollar-backed stablecoins, giving banks, payment processors, and corporations a legitimate entry point. The Trump administration has already thrown its support behind the initiative to allow commercial banks to custody or issue stablecoins during its first term.
Curious about the Trump-era policies and what’s fueling the crypto growth? Download the full report here!
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.
CryptoMoon does not endorse the content of this article nor any product mentioned herein. Readers should do their own research before taking any action related to any product or company mentioned and carry full responsibility for their decisions.
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2025-06-11 17:12