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Crypto Markets Benefit from Favorable Environment Since U.S. Election
New Era for Crypto in the U.S.
JPMorgan has stated that the total cryptocurrency market cap has jumped about 65% since the recent presidential election, indicating a new era for crypto in the U.S.
Crypto-Friendly Administration
“Not only does this new administration bring a sense of crypto friendliness, but it also has shown an eagerness to promote the asset class,” analysts led by Kenneth Worthington wrote.
Positive Developments
The incoming administration has shown a willingness to talk about crypto market regulation and about how to keep future development in the U.S., the report said. Additionally, the president-elect has already nominated a number of people who will take part in the formulation of crypto policy and enforcement.
A Safer, More Transparent, and More Productive Industry
This means a floor has been established, in that the “worst regulatory environment for crypto” is in the past. The ecosystem is now expected to become a “safer, more transparent, and more productive industry (from a regulatory perspective) from this point.”
Timeframe for Policy Impacts
However, these positive tailwinds could take some time to have an effect. JPMorgan cautioned that the market might not see policy impacts for at least nine to 12 months into Trump’s term.
CFTC Chair Nomination
Trump’s nomination for the Commodity Futures Trading Commission (CFTC) chair is one piece missing from the administration’s pro-crypto agenda, the Wall Street bank said. The position is important because of its likely role in regulating bitcoin (BTC) and ether (ETH).
Innovative Products and Listings
A more productive regulatory environment would lead to the listing of more tokens by exchanges and brokers, and would also encourage more product innovation, the report added.
Read more: Crypto Markets Have Benefited From a Positive Environment Since U.S. Election: Citi
Conclusion
In conclusion, the crypto market has benefited significantly from the positive environment since the U.S. election. The incoming administration’s crypto-friendly stance and willingness to regulate the market have boosted investor confidence, leading to a surge in market capitalization. As the regulatory landscape continues to evolve, the crypto industry is expected to become a safer, more transparent, and more productive sector.
FAQs
Q: What are the implications of a crypto-friendly administration for the crypto market?
A: A crypto-friendly administration could lead to a surge in market capitalization, increased regulatory clarity, and a more favorable environment for innovation and adoption.
Q: How long will it take for policy impacts to be felt in the market?
A: JPMorgan estimates that the market might not see policy impacts for at least nine to 12 months into Trump’s term.
Q: What is the significance of the CFTC chair nomination for the crypto market?
A: The CFTC chair nomination is important because of the commission’s role in regulating bitcoin (BTC) and ether (ETH). The nomination will help shape the future of crypto regulation in the U.S.
