Circle CEO Jeremy Allaire is expressing optimism about the possibility of President Donald Trump implementing policies that could benefit the crypto industry, even though Trump’s inauguration speech on January 20 did not touch on Bitcoin or crypto. Allaire, speaking at the Reuters Global Markets Forum during the World Economic Forum in Davos, emphasized the need for changes to current regulations that hinder the growth of digital assets.
Allaire specifically pointed to the importance of reversing restrictive policies like the SEC’s Staff Accounting Bulletin (SAB) 121, which he argued “effectively penalized banks and financial institutions for holding cryptocurrencies on their balance sheets.” He stressed that repealing such measures could significantly aid the adoption of digital assets within the traditional financial system.
Circle, the issuer of USD Coin (USDC), has been active in advocating for regulatory reform in support of crypto innovation. The company demonstrated its commitment to this cause with a $1 million USDC donation to Trump’s inauguration committee, signaling its confidence in potential positive crypto policies from the Trump administration.
Despite Allaire’s remarks, Trump’s inauguration speech focused on issues like tariffs, immigration, and energy independence, with no mention of cryptocurrencies. This led to speculation about when crypto-related policies might be introduced. Throughout the day, the market experienced volatility, with Bitcoin (BTC) reaching a record high of $109,000 before falling to a low of $100,000. As of the latest data from CryptoSlate, Bitcoin stabilized at around $103,500.
The price surge follows a nearly 50% rally in Bitcoin since Trump’s election in November, driven by expectations of favorable crypto policies. Recent trends also highlight growing institutional interest, with Bitcoin exchange-traded products (ETPs) seeing $1.9 billion in inflows last week, contributing to a larger $2.2 billion total influx into crypto-focused ETPs.
Additionally, Trump’s new memecoin, TRUMP, launched on the Solana blockchain, surged by 490% in just 24 hours, pushing its market cap to almost $11 billion before a correction set in. While a proposed strategic Bitcoin reserve remains speculative, betting platforms suggest a 60% chance of such an initiative materializing within the year.
Industry experts remain hopeful that Trump’s administration could bring about a period of regulatory clarity and growth for cryptocurrencies, potentially accelerating adoption and integration across traditional financial systems.
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