Src: NBC News
According to JPMorgan, the recent win by Donald Trump has unlocked in a "new era" for crypto in the U.S., reflecting a significant shift in the regulatory landscape.
Following Trump's victory, the total market cap of crypto surged approximately 655, showing strong investor optimism about the future of digital assets under his administration.
The report highlights that the Trump administration is expected to foster amore friendly regulatory environment for crypto. This includes discussions on how to regulate the market effectively and support its development, contrasting sharply with the previous administration's approach.
Trump has already started to nominate officials who will be key in determining the direction of cryptocurrency policy. Analysts believe that these appointments will encourage exchanges and brokers to list additional coins and develop new products by demonstrating a commitment to establishing a pro-crypto regulatory framework.
While there is enthusiasm about potential regulatory clarity, JPMorgan warns that tangible policy impacts may take 9 to 2 months to materialize as the new administration settles in and starts implementing changes.
Trump has supported the creation of a strategic Bitcoin reserve, which is one of the suggested measures. Similar to oil reserves, this would include the US government retaining Bitcoin as a reserve asset; however, opinions within the cryptocurrency community have been divided on this point.
Overall, the assessment by JPMorgan pictures a transformative period for US crypto policy under Trump with expectations for improved regulation and greater market legitimacy.
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