Bitcoin Should Be ‘Political Obligation’, With No Accountability – NYDIG
Following Donald Trump and the Republican's victory in the US election, Bitcoin will take on political significance – and investors who don't own the cryptocurrency cannot afford to ignore it, according to the New York Digital Investment Group (NYDIG).
“While some investors are allocated to Bitcoin, the most common allocation for investors is still zero. There is no excuse now,” said Greg Cipolaro, head of global research at NYDIG, in a Nov. 11 note.
“Now it is becoming a political imperative.”
“Not getting the property will be a liability in the future,” he said. “Investors who find it easy to dismiss or ignore assets for a variety of reasons remain at financial risk.”
Bitcoin (BTC) has increased by 84% this year and continues to reach a new high near $82,000, which was boosted by Trump's presidential victory.
On November 11, Bitcoin hit an all-time high of $81,943 on Coinbase. Source: TradingView
Republicans, who have backed bills backed by the crypto industry, form a majority in the Senate and appear on track to hold a majority in the House after flipping some seats from Democrats.
Cipolaro said that the crypto space now sees itself as “having a place at the table at the highest levels of government,” which could lead to crypto and blockchain being “more accepted by the mainstream financial system.”
He added: “2025 will see new heads in almost all major agencies and departments, and finally, pro-crypto law and regulation has real potential.”
Trump has vowed to fire Securities and Exchange Commission Chairman Gary Gensler “on day one,” and his team is reportedly eyeing Robinhood Markets' legal chief as a front-runner for the job.
The SEC has launched several lawsuits against crypto companies under Gensler, which Cipolaro speculates could backfire.
“A post-election change in leadership may lead to a more appropriate regulatory philosophy,” he said. “This could lead to the SEC seeking settlements with these companies, requiring them to operate within a clearer regulatory framework or, in some cases, dropping certain lawsuits altogether, especially if they are deemed not to serve the public's best interest.”
Related: Bitcoin May End Year at $58K as Futures Market ‘Overheats' – CryptoQuant
He added that the SEC may waive any enforcement action filed against Robinhood, Crypto.com, Consensus, Uniswap, and Voluntary Notice through Wells Notices.
Cipolaro told the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and Treasury, that along with the new attorney general, “new department heads are likely to be appointed that are expected to move to a more pro-crypto stance.”
The new regulators may take a more favorable stance toward banks that work with crypto, Cipolaro said, “supporting banks to provide custodial services for digital assets, including stablecoins.”
Magazine: Rise of Mert Mumtaz: ‘Perhaps more FUD Solana than anyone else'
