According to the CEO of cryptocurrency exchange platform Coinbase (COIN), the inauguration of new President Donald Trump could lead to a large influx of new capital into the cryptocurrency market.
During a panel discussion at the World Economic Forum in Davos, Switzerland, Brian Armstrong said Congressional legislation in the coming months and years would bring new investment into cryptocurrencies. said.
“The Trump effect is undeniable,” Armstrong said, according to Reuters. “How can the leader of a country with the largest GDP in the world come forward and say he wants to be the first crypto president?”
Armstrong also said that Monday’s all-time high for Bitcoin, when the largest cryptocurrency exceeded $109,000 by volume, was due to Trump’s inauguration as the 47th US president.
But that surge didn’t last long. Bitcoin fell nearly 3% on Tuesday morning to around $104,000 on disappointment over the president’s lack of first-day action on crypto and digital assets.
Due to the fall in Bitcoin prices, the global cryptocurrency market capitalization has fallen by more than 2% in the past day to $3.58 trillion.
One disappointment was President Trump’s failure to establish a national Bitcoin reserve shortly after taking office. Alexander Bloom, CEO of Two Prime, an SEC-regulated registered investment advisory firm specializing in digital asset derivatives, told Quartz that failure to deliver on its commitments early in his new term would result in a backlash. He said he was deaf.
However, a cryptocurrency-friendly regulatory environment could help facilitate more rapid advancement and adoption of Bitcoin and other digital assets. Securities and Exchange Commission Chairman Gary Gensler, a vocal opponent of cryptocurrencies, officially resigned on Monday. His resignation clears the way for Paul Atkins, Trump’s nominee for the SEC, to take over. Atkins’ appointment requires Senate confirmation.
Gensler’s resignation is a victory for the crypto lobby, which has been campaigning against SEC officials seeking stricter SEC oversight of the industry. His SEC was responsible for high-profile cases against numerous major industry players, including Coinbase and Binance. According to the agency, 18% of complaints were related to cryptocurrencies.
— William Gavin contributed to this article.
For the latest news, follow us on Facebook, Twitter and Instagram.