In a recent Fox Business segment, Perianne Boring, the founder and CEO of The Digital Chamber, discussed the potential impact of Donald Trump’s economic policies on the cryptocurrency market, particularly Bitcoin (BTC-USD). Since Trump’s election, Bitcoin has soared past $100,000, fueled by promises from Trump and his team to make the U.S. the “crypto capital of the world.”
Boring highlighted Trump’s vision to create a strategic Bitcoin stockpile for the United States, aligning tax policies to boost economic activity in the crypto space, and clearing regulatory hurdles that have previously pushed crypto development outside U.S. borders. She emphasized that under the Biden administration, the U.S. had seen an exodus of crypto activity, and Trump’s leadership could reverse this trend by fostering a more welcoming environment for digital assets.
The discussion also touched on Trump’s appointments, which could significantly influence crypto regulation. Paul Atkins, tapped to lead the SEC, has been vocal about the adverse effects of stringent SEC enforcement on the domestic crypto industry, pushing developers towards Asia and Europe. Similarly, Brian Quintenz, with his background as a CFTC commissioner and now at the helm of a venture capital fund, is seen as a contender to lead the CFTC, bringing technical and industry expertise to the role. Boring noted the ongoing “turf war” between the SEC and CFTC, which has led to regulatory confusion and pushed businesses abroad due to compliance uncertainties.
Trump’s administration also includes David Sacks as the White House AI and crypto czar, and Congressman French Hill is set to investigate Operation Choke Point 2.0, aiming to curb the alleged debanking of crypto firms. These moves suggest a more crypto-friendly regulatory environment.
Regarding the structure of regulation, Boring addressed the possibility of merging the SEC and CFTC, as suggested by some analysts for efficiency and clarity. She acknowledged the unique U.S. system of having separate agencies for securities and derivatives might not be the most efficient, especially given the overlapping jurisdictions and conflicts. While she sees potential benefits, she also noted that such a merger would require congressional support, something not currently on the legislative agenda but could be part of broader efficiency proposals from figures like Elon Musk and Vivek Ramaswamy.
Finally, when asked about Bitcoin’s price trajectory, Boring suggested that even a forecast of $250,000 by the end of next year might be conservative. She referenced the stock-to-flow model, indicating Bitcoin could reach over $800,000 if Trump’s proposals succeed, emphasizing Bitcoin’s fixed supply as a key factor in its potential for significant price increases.
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