Stepping Down of US Regulators and End of an Era

Src: Reuters

The United States crypto regulatory landscape is undergoing significant changes as important figures step down ahead of the inauguration of President-elect Donald Trump.

The Federal Reserve Vice Chair for Supervision, Michael Barr will resign on February 28, potentially easing regulatory pressure on crypto.

The departure of Michael Barr could lead to a more crypto-friendly environment, as he was known for his strict stance on crypto, particularly stablecoins, and his opposition to banks holding crypto assets directly.

His exit is seen by the crypto community as an opportunity for more balanced policies.

The Securities and Exchange Commission of the United States, Gary Gensler will also resign on January 20, marking the end of an era characterized by stringent oversight.

The resignation of Gary Gensler could have several potential consequences for crypto regulations like a shift in the crypto regulatory approach as President-elect Trump has promised to appoint a successor who is more favorable to crypto.

If Gensler leaves, the SEC may find itself in a temporary deadlock, with commissioners possibly splitting 2-2. Hester Peirce or Mark Uyeda, Trump's choice for Acting Chair, might have an impact on daily operations and could reverse some policies.

Gensler's exit has already led to optimism in the crypto market, with Bitcoin experiencing a significant surge following the news.

These departures are seen as opportunities for more friendly crypto policies under the new administration.

Trump's proposal for a Strategic Bitcoin Reserve could prompt other countries to bolster their crypto reserves, impacting global demand and acceptance of cryptocurrencies as reserve assets.

But again, these are just the assumptions, the crypto industry will have to wait and see how the new administration goes about crypto.

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