Donald Trump recently won the US presidential election, and this has had a big impact on Bitcoin. The price of Bitcoin has gone up a lot, reaching almost $80,000. This is a big increase, with Bitcoin’s price climbing 16% in just one week. Many people are now paying attention to who Trump will choose to lead the US Securities and Exchange Commission (SEC), which is the government agency that regulates the financial industry, including digital assets like cryptocurrencies.
Experts think that Trump wants to pick someone who is positive about digital currencies, meaning they may want to help these assets grow and develop. Although Trump has not officially named anyone yet, it looks like he is determined to find someone who will encourage innovation and growth in the digital asset market.
Will Gary Gensler Leave His Position?
During his campaign, Trump said he would fire the current SEC Chair, Gary Gensler, as soon as he took office again. Gensler has been a controversial leader when it comes to cryptocurrency. He has put in place strict rules and taken legal action against some companies in the crypto space. Trump’s plan to replace Gensler with someone who supports cryptocurrencies could mean big changes for the industry.
Gensler was chosen for his role by President Joe Biden in 2021. He has been known for being tough on crypto companies, often taking them to court. His term is supposed to last until 2026, but there is a chance he could leave early when Trump returns to the White House. So far, Gensler hasn’t said if he plans to step down or continue in his job.
Who Could Be the Next SEC Leader?
There are a few people being considered to replace Gensler if he steps down. The two people seen as front-runners are Dan Gallagher and Richard Farley.
Dan Gallagher
Dan Gallagher used to work as a commissioner for the SEC between 2011 and 2015. During his time there, he talked about how the rules for new technologies, like cryptocurrencies, needed to be clearer and more specific. Unlike Gensler, who has been strict with the crypto industry, Gallagher believes in setting up easier rules to help these businesses comply with regulations. He has suggested a “baseline registration system” for crypto exchanges. This system would give crypto companies a clear path to follow, which might make it easier for them to operate and grow in the United States. This kind of system could also help bring more innovation and investment to the country.
Richard Farley
Richard Farley is another possible choice. He has a strong background in finance and has worked with many big financial companies. He also has close connections to the Republican Party, which could make him an attractive choice for Trump’s team. His wife, Chivacci “Chele” Farley, has worked with the Republican Party in New York City, and Farley himself is friends with Robert F. Kennedy Jr., a supporter of Trump. Because of these connections, Farley is seen as someone who could fit well with the new administration.
Other potential candidates for the SEC chair job include Chris Giancarlo, who is nicknamed “CryptoDad” because of his positive attitude towards digital currencies, and current SEC Commissioner Hester Peirce, who has also supported crypto-friendly policies.
Trump’s View on Cryptocurrencies
During his last term, Trump introduced new rules for cryptocurrencies, including rules for exchanges and stablecoins, which are digital currencies tied to a traditional asset like the US dollar. His views on digital currencies and how they are regulated in the US could change things for companies like Coinbase and Binance, which are popular crypto exchanges.
Trump’s approach to crypto regulations will likely change the market. He does not support digital currencies created by central banks, known as central bank digital currencies (CBDCs). If Trump slows down efforts to create CBDCs, it could make the US different from other countries that are pushing ahead with these types of digital currencies.
One thing that has excited crypto fans is Trump’s idea to create a “Bitcoin Strategic Reserve.” This plan was part of his campaign and has already helped boost market confidence.
Bitcoin’s Price Reaches New Highs
When it became clear that Trump would win the election, Bitcoin’s price shot up. It reached a new record high of more than $75,000 and later rose even higher to $77,000 when the US Federal Reserve lowered interest rates. By the end of the week, Bitcoin’s price had gone up by 25% over the past month.
Right now, Bitcoin is trading at nearly $80,000, which is an all-time high. Its total value, or market capitalization, is more than $1.5 trillion, making it one of the world’s largest financial assets. However, its dominance over other cryptocurrencies, or “altcoins,” has dropped a bit.
The Impact on the Overall Market
The rise in Bitcoin’s price has also lifted the prices of other cryptocurrencies. Ether, the main currency for the Ethereum network, went up by more than 5% in one day and by 21% over the week. Solana’s token also did well, climbing above $200. Binance Coin, Avalanche, Chainlink, Cardano, and other altcoins also saw big gains. In total, the value of the entire cryptocurrency market is now $2.84 trillion.
More Interest in Bitcoin ETFs
Since Trump’s reelection, there has been a lot of interest in Bitcoin exchange-traded funds (ETFs), which allow people to invest in Bitcoin without having to own the digital asset directly. BlackRock, the world’s biggest asset management company, led the way, with a large amount of money going into its Bitcoin ETF.
What the Future Holds
Experts believe that Trump’s second term will bring more support for the cryptocurrency community. Many fund managers are already looking to create ETFs that include other digital tokens, such as Solana, XRP, and Litecoin.
There is hope that Bitcoin’s price could continue to rise, with some people predicting it might even reach $100,000 in 2024. While it’s unclear if this goal will be met, it’s certain that interest in cryptocurrencies is strong. With Trump’s favorable attitude towards digital assets, the future looks promising for Bitcoin and other cryptocurrencies.