Crypto Friendly SEC and Senate Banking Committee Expected Under Trump: Bernstein

As a seasoned analyst with over two decades of experience navigating financial markets and regulatory landscapes, I find the recent election results and subsequent shift in US regulatory stance towards digital assets incredibly promising. My career has been marked by numerous market cycles and transformative shifts, but this transformation in crypto regulation could very well be one of the most impactful.

Following Donald Trump’s win in the U.S. Presidential election and the Republicans taking control of the Senate, it is anticipated that regulatory clarity for digital assets will become more favorable. This is due to the Securities and Exchange Commission (SEC) and Senate Banking Committee likely becoming more open towards cryptocurrencies as a result, according to a research report issued by broker Bernstein on Thursday.

The broker mentioned that we’re likely to see a fresh set of regulations for cryptocurrencies. He also pointed out that this significant change might not yet be reflected in current market prices.

According to Bernstein, there’s a growing anticipation for quicker advancements on both the stablecoin and market structure bills. This development is beneficial for major players like Circle, Paxos, and prominent U.S. cryptocurrency trading platforms and broker-dealers.

As a research analyst, I’ve observed that entities like Coinbase, Robinhood, Binance, and various DeFi and stablecoin companies are currently engaged in legal disputes with the Securities and Exchange Commission (SEC).

Looking ahead, we anticipate that the distinction between digital assets and securities will become clearer, and a phased approach for SEC registration of digital asset securities is likely to be developed, according to analysts headed by Gautam Chhugani.

The broker stated that they anticipate a reclassification or higher valuation for a wider range of cryptocurrencies, as there has been uncertainty about whether these assets are considered securities. They also expect investment firms to launch more Exchange-Traded Fund (ETF) offerings tied to various types of cryptocurrency tokens.

Actions are suggested for establishing a national Bitcoin reserve, as per Trump’s pledge during his campaign, and an increased emphasis on expanding Bitcoin mining within the United States is also proposed, according to the report.