Trump’s Crypto Plans May Face Delays, NYDIG Warns

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As Donald Trump prepares to take office on January 20, speculation grows about his administration’s approach to crypto regulation. Despite promises to revamp the framework governing digital assets, the New York Digital Investment Group (NYDIG) has warned that significant changes to crypto regulation might not happen immediately.

Delays Expected in Trump’s Crypto Regulation Reforms

Greg Cipolaro, NYDIG’s global head of research, explained in a January 10 note, “Key officials still need to be named, those that have been named need to go through the confirmation process, and then once confirmed, they need to assemble their staff.”

This process, combined with the complexities of passing new laws, could delay regulatory reforms.

The new administration is also expected to prioritize pressing issues such as the national budget, immigration, and geopolitical challenges over cryptocurrency legislation.

Cipolaro emphasized, “The execution of these initiatives may be a matter of priority, with items like geopolitical conflict, the budget and debt ceiling, global trade and tariffs, and immigration perhaps more pressing matters.”

While delays in crypto regulation reforms are likely, one potential development under Trump’s administration could be the establishment of a strategic Bitcoin reserve. Cipolaro noted that this initiative could be fast-tracked through an executive order.

The proposed reserve could use the $18.3 billion worth of Bitcoin confiscated by the government in criminal cases.

Cipolaro remarked, “That alleviates an overhang that the U.S. would be a seller of Bitcoins,” but cautioned that it would not create additional demand for the cryptocurrency.

Challenges in Passing Comprehensive Crypto Regulation

Cipolaro also pointed out that an executive order establishing a Bitcoin reserve would be temporary and could be reversed by a future administration.

Nevertheless, the idea reflects the growing interest in integrating Bitcoin into U.S. financial policy.

The legislative landscape could present further challenges for Trump’s crypto regulation reforms.

With a conservative Senate in place, bipartisan cooperation on crypto-related bills- such as those governing stablecoins or clarifying the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) might be difficult to achieve.

NYDIG highlighted the need for patience, noting that while the new administration’s approach to digital assets appears promising, meaningful progress will depend on overcoming procedural and political obstacles.

​​The Federal Reserve has also expressed concerns about the potential inflationary effects of Trump’s trade and immigration policies.

According to the minutes of its December meeting, the Fed noted, “Almost all participants judged that upside risks to the inflation outlook had increased,” citing stronger-than-expected inflation data and the likely impact of policy changes.

This adds another layer of complexity to the administration’s priorities, which could further delay immediate action on crypto regulation.

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Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.