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Crypto Renaissance: How Trumps Policies Could Boost Bitcoin and Ethereum in the US
QUICK TAKESThe Trump administration may ease crypto regulations on digital assets. The crypto ecosystem will likely thrive in this new environment.Record inflows into spot Ethereum exchange-traded funds ($ETH ETFs), totaling $295M, highlight strong investor interest in Ethereum.Appointing pro-crypto figures to key regulatory positions could bring clearer regulations. These, in turn, would foster innovation, reduce scams, and support decentralized projects.The US may be moving towards a more crypto-friendly approach under the Trump administration. The result? Potentially easing crypto regulations that have held back digital asset adoption in the US.Big players like venture capital firm Andreessen Horowitz (a16z) predict a bright future for crypto in the US under this lighter regulatory climate.This shift could be a game-changer for cryptocurrencies, with $ETH and Bitcoin ($BTC) experiencing huge gains after the November elections.At the same time, Ether ETFs are seeing record inflows and rising interest from investors.Lets have a closer look at how this policy change could impact the US crypto marketTrump Administration Signals a Softer Stance on CryptoNow that the campaigning is done and dusted, Trump can start on his pledge to make the US the crypto capital of the planet.This bold plan would likely mean appointing pro-crypto figures to key regulatory positions, including the SEC (Securities and Exchange Commission), which has been heavily criticized by the crypto community.Trumps advisors are said to be considering a mix of current and former regulators and financial experts with positive crypto stances.Names being floated for critical roles include Hester Peirce, an SEC commissioner known for advocating a more crypto-supportive approach. He could become interim SEC chair if Trump follows through on his promise to fire the current chair, Gary Gensler, on day one.Additionally, Mark Uyeda, an SEC commissioner critical of current enforcement practices, is seen as another strong candidate for the top spot.Paul Atkins, a former SEC commissioner, and Chris Giancarlo, former CFTC chair, are also under consideration.A16z Sees Bright Horizon for Crypto BuildersAccording to major Silicon investor a16z, the new environment might finally allow crypto developers to build solutions that empower individuals. Use cases include decentralized digital identity, low-cost international transactions, and new revenue channels for creators.In a16zs recent memo, A Positive Path Forward, the companys policy team shares its opinions on cryptos future. The team suggests that as the industry moves toward clearer regulations, developers will have more confidence and freedom to use tokens and blockchain tools responsibly.This clearer framework could potentially help weed out fraudulent projects, as rules would make it easier to identify them while also fostering community-driven projectsEthereum ETFs: a Sign of Growing DemandIn related news, spot $ETH ETFs, which launched in July, recorded their biggest day of inflows in history. On November 11, they saw nearly $295M in inflows a massive leap from the previous record of $106.6M set on launch day.CK Zheng, founder at ZX Squared Capital, sees this as a sign of Ethereums potential under a government that supports blockchain innovation.$ETH and $SOL will perform well in the next few months if the new Trump administration actively promotes blockchain technology and speed up the digitalization in the financial industry. CK ZhengThis demand also reflects the growing interest in Ethereum-based applications. This is especially true in areas like decentralized finance and non-fungible tokens, which continue to bring in more users.A16z echoes Zhengs view, suggesting that decentralization is the way forward. The team goes so far as to encourage stakeholders to do away with centralized aspects and dependencies on trust.A New Era for US Crypto?A more relaxed government stance and the resultant crypto bull run could bring exciting times for the US crypto sector.With more regulatory clarity, innovation and user adoption may flourish in the years ahead, bringing mainstream crypto use closer than ever.Trumps promise to become the first crypto president could mean new users, more innovation, and a more stable environment for the industry to thrive.ReferencesA positive path forward by a16z (a16z website)The Washington Post on Trumps pro-crypto candidates for key federal financial agencies (The Washington Post website)Daily Ethereum Spot ETF Net Inflow by Coinglass (Coinglass website)Ethereum is starting to catch a bid by Cointelegraph (Cointelegraph news)Add Techreport to Your Google News Feed Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now! Subscribe now Anya Zhukova is a tech and crypto writer with 8+ years of experience creating practical, easy-to-understand content for top publications like MakeUseOf, Online Tech Tips, Help Desk Geek, Switching to Mac, and Make Tech Easier.An advocate for financial freedom, Anya covers the latest in cryptocurrency, tech trends, and product reviews to keep readers informed and empowered.Through her work with brands like Framework, Insta360, Redmagic, Inmotion, Secretlab, Kodak, and Anker, she brings a hands-on perspective to her reviews, helping people get the most out of new tech. View all articles by Anya Zhukova Our editorial processThe Tech Reporteditorial policyis centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written byreal authors.
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