Electing encoders and high risks to political gambling

With President Donald Trump stabilized in his second term, the encryption industry finds itself in the Washington’s political and economic agenda center, and seeks to demand the return on its major financial investments in converting the balance of power firmly into the hands of Republicans in both Congress and executive branches. Trump’s campaign promised to make the United States “the world of encryption in the world” have set the way to a policy of great energy, unlike anything before in regulating digital assets.

With Republicans in both the two rooms of Congress, it is scheduled to be the first 100 days of the Trump administration a pivotal period of encrypted currency policy. It is expected that legislation, such as the Stablecoin Bill, is expected to have the support of the two parties, which provides a rare opportunity to cooperate in Washington, divided otherwise. However, beyond rhetorical and executive requests, real change Confirms hinges– The executive branch is not permanent regulations.

Democratic leaders have expressed their concerns about the potential role of Stablecoins in facilitating illegal activity. Nevertheless, House Financial French Hill (R-Ark) is still optimistic about finding a common ground. “I am still committed to an attempt to make these bills success from the two parties at home,” he told Hill Hill Intuition.

After a short pump on Trump’s election news, the bitcoin price often ignored, as it fell from its highest level at all $ 109,114.88 to 89,260.10 dollars at the time of writing this report, according to Coinmarketcap. The fluctuations reflect uncertainty in the market about the administration’s ability to provide organizational clarity.

To keep up with the barrage of changes in law and politics, every week, I will follow the promises he made and keep them (or not) by the president and the Congress in this series of news, entitled Election of encryption.

Opening movements: Stablecoins take the lead center

One of the first major policy references to the administration came with the announcement of this Stablecoin organization It will be among the first legislative priorities. Senator Tim Scott (RS. Innovation for the United States Stablecoins (genius).

The draft law aims to:

• Select Stablecoin’s batch as a digital origin linked to a fixed cash value.
• Create clear procedures for institutions that seek to obtain licenses to issue Stablecoins.
• Implementing the requirements of the reserves and the organizational framework designed for exporters.
• Topic exporters with more than 10 billion dollars circulating to oversee the Federal Reserve, while allowing the state list for smaller exporters.

This legislation is placed as a time link for the administration’s efforts to enhance the sovereignty of the US dollar and expand the financial listing, although the actual implementation of the inclusion is not yet clear in an environment that is considered Trump’s efforts to Trump Dismantling diversity, integration, and stock access initiatives In the federal government. In addition, fears of democratic lawmakers remain, especially with regard to The potential role of Stablecoins In illegal financing.

Some economists argue The unorganized Stablecoin market can provide systematic financial risks, especially if exporters lack sufficient reserves or engaging in speculative investments. Defenders contradict that the well -organized organizational framework can reduce these risks while promoting broader innovation and financial participation. As the two -party negotiations continue, the final fate of Stablecoin Federal Legislation remains uncertain.

Trump Check Eo: Determine a new direction

On January 23, 2025, Trump A very expected executive matter (EO) on digital assets, determining a pro -leasing framework. Arrangement:

• Administration is directed to evaluate friendly policies for encryption.
• Federal agencies are prevented from working on the US Central Bank of Bank (CBDC).
• The executive order of Biden’s digital assets is canceled 2022.
• It calls for a review of all current encryption regulations within 180 days.

While executive orders can put the policy priorities for federal agencies, they do not have the power of legislation. Like Trump’s Eo, it is very similar Removed From Whitehouse.gov) to a large extent as a road map, and delegate responsibility to consulting committees and organizational reviews instead of implementing immediate organizational changes.

The executive matter is ambitious and sincere to the promises of the campaign that was presented, but it lacks the enforcement of immediate organization and may serve as a political gesture more than changing objective policy. Supporters believeHowever, it paves the way for a more convenient legislative environment, especially in encouraging agencies to create clearer and less punitive instructions for digital asset companies.

Trump Bitcoin’s bet: The American Bitcoin Strategy Reserve?

One of the most ambitious proposals in management is a potential creation of the American Bitcoin Strategic Reserve. Although EO of Trump does not formally create this reserve, it directs federal agencies to assess the feasibility of Bitcoin’s contract as a strategic origin.

With the support of Senator Cennis Lomes (R-WYO), the initiative argues that Bitcoin can:

• Hedging against inflation.
• Enhancing global dominance of the US dollar.
• It is a digital alternative to gold as a backup asset.

After this announcement, Bitcoin rose above 106,000 dollars, indicating the enthusiasm of the strong market for the position of management supporting the bullets.

but, Fears About bitcoin volatility and its effects on monetary policy. Traditional economists warn that bitcoin as a backup asset can lead to new risks to financial stability, especially given the history of exciting price fluctuations. The proposal also raises questions about how to organize such a reserve and whether the federal reserve or the treasury will supervise its administration.

Organizational reform: a new era in the Supreme Education Council

Trump’s appointment to Paul Atkins as Chairman of the Securities and Stock Exchange Committee is a dramatic shift from the approach that enforcement of former SEC President Gary Ginsler. Atkins has already started:

• to support SAB 121 cancellation In favor of the coding nursery rules, explained.
• Fix the SEC position on the encryption classification, with the aim of distinguishing securities from commodities.
• Establishing a SEC Cracks, led by Commissioner Hyster Peres, to create the clearest industry guidelines.

These movements can bring organizational clarity to an industry that faced significant enforcement procedures within the framework of the previous administration.

The sovereign wealth fund and conflicts of interests are fears

In an unprecedented step, EO announced from Trump that the creation of a US sovereign wealth box (SWF). While it aims to enhance economic development, the fund raises constitutional concerns because Congress controls federal spending. If SWF is invested in Bitcoin, it can add legitimacy to digital assets as a reserve, but it also introduces unprecedented volatile risks into the management of federal assets.

To add fuel to fears, Trump’s personal participation in encryption sparked controversy. A few days before his inauguration, Trump launched his famous metal currencies, $ Trump and $ Melania, which raises big concerns (by Supporters and opponents Either) about:

• Profit from his political influence.
• Market manipulation, as Trump’s entities control 80 % of metal currency supplies.
• Ethical concerns related to transparency in presidential financial transactions.

The first 100 days: Putting the theater for a new encryption era?

The first 100 days of Trump’s second term set the most profitable tone in the history of the United States. However, the real test is waiting. Will Congress remain meaningful legislation, or will Crypto remain a political battlefield?

One thing is clear: encryption is no longer strange in American politics. I took the lead center.