Cryptocurrency was not mentioned in Trump's inaugural speech

Trump officially returned to the White House last night and became the 47th President of the United States. However, Trump did not mention Bitcoin or cryptocurrency in his inaugural speech, and there was no relevant content about Bitcoin or cryptocurrency in his first day of executive order signing.

The cryptocurrency market has been expecting Trump to immediately improve the regulatory environment of the cryptocurrency industry after taking office, but the first day's performance disappointed the market. At the time of writing this article, Bitcoin has fallen from yesterday's high of $109500 to the level of $101000.

At present, the policies that the market expects Trump to achieve include Bitcoin strategic reserve and the abolition of the evil encryption law SAB 121.

Bitcoin Strategic Reserve

During the election campaign, Trump said many times that he would realize the strategic reserve of Bitcoin after taking office. Although he did not specify how much national funds he would use to buy Bitcoin, he would not sell nearly 200000 Bitcoin seized by the US government at least.

However, there are still many different voices in the market regarding whether this political stance can be implemented. Matt Hougan, the chief investment officer of Bitwise, believes that the CPPCC will realize this political opinion, and said:

The plan for the United States to establish a strategic reserve of Bitcoin has not yet been priced by the market, and it is even far from being finalized

However, Arthur Hayes, the co-founder of BitMex, believes that Trump will not find time to fulfill this commitment.

"In the end, I don't know what good it is for Trump to borrow money to buy Bitcoin."

Arthur Hayes Furthermore, it should be noted that the limited time until the midterm elections in the United States may limit the ability to implement significant policy changes. In addition, he believes that the government has many other priorities that require investment of time and funds.

Before destroying the bond market, your borrowing ability was limited. Would you borrow money to buy Bitcoin? Or would you borrow money to provide healthcare to elderly people who voted for you? Or would you use it to build more bombs to gain support from defense lobbying groups? There are many things that can be done with borrowed money, but I don't think Trump will spend money on Bitcoin. Although people in the Bitcoin circle consider themselves important, there are many other stakeholders who hope that these borrowed funds will flow into their pockets

Abolish the encryption law SAB 121

In contrast, abolishing the encryption law SAB 121 seems to have a better chance of being implemented. SAB 121 is a controversial accounting guidance from the US Securities and Exchange Commission (SEC) that requires financial institutions holding customer cryptocurrencies to record them as liabilities on their balance sheets. Critics of the guidance argue that it will make cooperation between financial institutions such as banks and cryptocurrency companies very difficult.

Although Congress had previously voted to overturn SAB 121, the resolution was later vetoed by Biden. Biden said at the time:

My government will not support measures that endanger the well-being of consumers and investors

But many local businesses in the United States believe that SAB 121 is not intended to protect investors, but to hinder the adoption of new technologies.

Regarding this bill, Circle Jeremy Allaire, CEO, said in an interview at the annual meeting of the World Economic Forum in Davos, Switzerland that President Trump of the United States might soon sign an executive order to make it easier for banks to own digital assets. But he did not specify the exact time.