Circle CEO Jeremy Allaire still trusts President Donald Trump to support the crypto business because of no preamble towards cryptos during the inauguration speech on January 20. At the Reuters Global Markets Forum in Davos, Allaire highlighted the need to roll back what he considers are anti-innovation rules, such as the Staff Accounting Bulletin 121 from the SEC.
Trump’s Crypto Potential Fuels New Hopes
Jeremy Allaire Circle CEO sees a favorable angle towards Trump’s policies in regards to crypto, stating that it could prevent restrictive measures such as the SEC’s SAB 121. “SAB 121 served to punish banks and other financial institutions for including cryptocurrencies on their balance sheets,” Allaire said at the forum. In an interview with Reuters, Allaire explains his proposition, stating that the removal of such barriers would improve the integration of digital assets into the traditional financial landscape.
Circle, who has been behind the USD Coin (USDC), has been front and center in pushing for policy changes in an effort to bring about growth in the crypto space. To affirm its support for Trump’s possible pro-crypto policies, the company contributed $1 million USDC to Trump’s inauguration committee.
Market Reaction and Uncertainty
It remains unclear whether Trump’s aides have taken Allaire’s cryptic prediction to heart, at least in the case of Trump’s inauguration speech, neither he nor his speech mentioned Bitcoin or cryptocurrency; instead, he was more preoccupied with other topics such as tariffs, immigration, and energy. This absence has raised investors’ concerns about the direction the administration will put forward regarding cryptocurrencies.
On the day of the inauguration, Bitcoin demonstrated a high degree of fluctuation. In the same week as per the information from CryptoSlate, the value of Bitcoin rose to a record high of $109,000 and thereafter slightly dropped to $100,000 and then got reasonably stable at around $103,500 at the end of the day. This fluctuation may be attributed to the fact that the market watches for policy-making, and crypto investments are generally speculative.
Increasing Organizational Use of Crypto
This has given an optimistic sentiment in investment as we have seen bitcoin going up by more than 50% since the election of Trump in November. There has been an increase in demand for digital currencies by institutions specifically through Bitcoin ETPs. BitCI ETPs alone saw $1.9 billion inflow of funds from last week, $2.2 billion of which, was invested in crypto ETPs.
Joining the market’s rally, Trump’s new meme coin called TRUMP has recently hit the market and was listed on the Solana network. Indeed in the space of a single day, the value of the token soared by 490 percent, taking is market capitalization to a close $11 billion before a slump was recorded.
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Conclusion on Circle CEO Surprising Take
Even though this means that Trump’s inaugural speech did not offer the crypto community the degree of certainty it was looking for, people like Jeremy Allaire Circle, CEO, still have faith. The potential of turning around laws such as SAB 121 will open up the field of cryptocurrencies and their implementation in the fiscal world. With regards on the uncertainty of the market, the main focus of the stakeholders when it comes to policies concerning digital assets is observing accurate workings in the Trump presidency. Keep following The Bit Journal and keep an eye on Circle CEO next prediction.
FAQs
- What makes Circle CEO believe in Trump on crypto bills?
Jeremy Allaire Circle CEO agrees with Trump, who has the possibility to introduce a favorable policy for the crypts, for example, by canceling the negative measures such as The SEC SAB 121 that currently fines financial organizations for storing cryptocurrencies.
- What is SAB 121, and what is important about it?
SAB 121 is also a regulation that made it prohibited for banking institutions to include cryptocurrency in their balance sheet. Eliminating this regulation can improve the existing connection between cryptocurrency and conventional finance substantially.
- What about cryptocurrencies did Trump say in his inaugural address?
In fact, it is necessary to notice that Trump’s speech does not mention any cryptocurrencies at all. But it was confined to matters such as tariffs, immigration, and energy policy, for instance.
- What CryptoMarket trends followed the inauguration of Trump?
There were huge fluctuations in Bitcoin prices during the election and presidential Inauguration day, where it reached $108,792, $103,500, and then fell to $100,199, only to recover to $101,567.
- What was Trump’s meme coin, and how did it do?
Donald Trump meme coin TRUMP, which occurred on the Solana blockchain, soared by almost 500% in a day and hit nearly $10.7 billion in its market capitalization before coming down a bit.
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