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The new Trump presidency could bring lots of new money into the cryptocurrency market, according to the CEO of crypto exchange platform Coinbase (COIN+1.02%).
Speaking on a panel at the World Economic Forum in Davos, Switzerland, Brian Armstrong said that legislation in Congress in the coming months and years will bring fresh investment to cryptocurrencies.
“The Trump effect cannot be denied,” Armstrong said, according to Reuters. “To have the leader of the largest GDP country in the world come out undeniably and say that he wants to be the first crypto president.”
Armstrong also attributed Bitcoin’s all-time high Monday, when the largest cryptocurrency by volume surpassed $109,000, to Trump’s inauguration as the 47th president of the United States.
But that surge was short-lived. Bitcoin retreated nearly 3% Tuesday morning for a price of around $104,000 amid disappointment over the president’s lack of day-one action on crypto and digital assets.
The global crypto market cap is down more than 2% over the past day to $3.58 trillion, led by the decline in the price of Bitcoin.
Among the disappointments was Trump’s failure to establish a national Bitcoin reserve immediately after taking office. Alexander Blume, CEO of Two Prime, an SEC-regulated Registered Investment Advisor specializing in digital asset derivatives, told Quartz that failing to fulfill that promise early in his new term would spark a backlash.
But a pro-crypto regulatory environment could lend itself to more rapid progress and adoption of Bitcoin and other digital assets. Securities and Exchange Commission Chair Gary Gensler, a vocal opponent of cryptocurrencies, officially resigned from his post on Monday. His resignation cleared the way for Trump’s SEC pick, Paul Atkins, to take over the agency. Atkins’ appointment still needs to be confirmed by the Senate.
Gensler’s departure is a win for the crypto lobby, which has crusaded against the SEC official for the agency’s strict oversight of the industry. His SEC took on high-profile cases against a number of major industry players, such as Coinbase and Binance. According to the agency, 18% of its complaints were related to crypto.
— William Gavin contributed to this article.