How SEC's Policies Affect Bitcoin and What Could Change Under Trump

Current Situation Under Biden: Under the administration of Joe Biden, the U.S. Securities and Exchange Commission (SEC) has significantly tightened its control over the cryptocurrency industry. The regulator, led by Gary Gensler, has initiated numerous lawsuits against major crypto companies such as Ripple Labs, Binance, Coinbase, and Kraken. Gensler believes that many crypto assets, except for Bitcoin, should be classified as securities, subjecting them to the relevant legislation.

Problems for Crypto Companies: The main disagreements between the SEC and crypto companies revolve around the classification of tokens. Companies argue that their tokens are not securities or cite regulatory uncertainty. However, the SEC insists otherwise, creating legal ambiguity and complicating business for crypto firms. Companies criticize the regulator for its punitive measures and lack of clear rules.

Possible Changes Under Trump: A change in administration in the upcoming elections could alter the situation. If Donald Trump returns to the White House, it is expected that Republicans will review the SEC’s cryptocurrency regulation policies. The Trump administration may attempt to remove Gary Gensler and appoint a new chairman who might adopt a more lenient approach.

Impact on Bitcoin: Bitcoin, which Gensler does not consider a security, is less directly affected by SEC regulation than other crypto assets. However, the overall regulatory environment, including Bitcoin, influences the entire cryptocurrency market. A more lenient regulatory approach could boost confidence in cryptocurrencies, increase their prices, and attract more investments in Bitcoin.

Experts' Predictions: Experts have mixed opinions. Some believe that a change in administration and SEC leadership will lead to a relaxation of current policies. Others, like Ji Kim from the Crypto Council for Innovation, argue that any changes will depend on SEC commissioners' new leadership and composition, and nothing is guaranteed.

Overall, future changes in cryptocurrency regulation depend on the political situation and SEC leadership. A change in administration could lead to a re-evaluation of current punitive measures and create a more favorable environment for the crypto business, potentially benefiting Bitcoin and the entire industry.