“Are Changing Regulations Driving Crypto Adoption and Acceptance Into a Golden Era?”, – WRITE: www.coindesk.com
THEN, BETH HADDOCK FROM Warburton Advisers Answers Questions About of the Impact of Regulatory Clarity on the Crypto Market in Ask An Expert.
– Sarah Morton
You’re Reading Crypto for Advisors, Coindesk’s Weekly Newsletter That Unpacks Digital Assets for Financial Advisors. Subscribe Here to Get It Every Thursday.
Global Landscape Update – Entering The Golden Era of Bitcoin and Crypto AssetsMuch Has Changed Over The Past Six Months. Donald Trump Took Office in the Us on January 20, WHICH WAS ALREADY TWO MONHS AGO.Nonentheless, in this Relating Short Period of Time, The New Adminstration Has. US, INCLUDING:
- Executive Order on Digital Financial Technology
- Establishment of A Strategic Bitcoin Reserve and National Digital Asset Stockpile
- Formation of the Sec’s Crypto Task Force
- Advancement of the Genius Act
- Shift in the Sec’s Enforcement Strategy
The Executive Order to Create a Strategic Bitcoin Reserve Has Already Establized the US as the Single Biggest Sovereign Holder of Bitcoins in the World, With Signified More.
On the Other Side of the Pond, the EU “Markers in Crypto Assets” (Mica) Regulation Came Into Force at the End of 2024, and Should Also Bring More Regulatory Cryli. Across The Continent.
IT Appears As if Mica is at Least Three to Five Years Ahead of US Crypto Regulation in Terms of Clarity, Consistency and Implement. If the US passes comprehenSive crypto regulation in the Next few Years, It Could Start Closing the Gap, But As of Now, Mica Is Significantly AHEAD IN PROVIDING LEGAL CROPTAINTY. Could Be a Majoor Driver for Institute Adoption Across The Continent.
The ECB HAS ALSO JUST REVEALED THAT IT WILL INTRODUCE The Digital Euro CBDC in October of This Year, Way Ahead of School. The Digital Euro Is Rumored to Utilize Public Blockchains Like Ethereum, Which Could Potentilly Boost Ethereum’s On -chain Activity Significant.
It Looks Like Bitcoin and Other Crypto Assets Are Entering the Mainstream.
That being Said, the Policies of the New Trump Administration Have Done Little to Create Certain in Financial Markets. In Fact, US Economic Policy Uncertainty Has Increated to the Highest Level Since the Covid-19 Recession in 2020 Due to Increase Trade Tensions and Government-Related Job Cuts.
US Recession Fears Are Back on the Table. Accorness to Crypto-Bated Betting Website Polymarket, The Probability of A Us Recession in 2025 HAS ALREADY INCREASED TO 41%. The Latest Fed of Atlanta Forecast Also Estimates the Latest Gdp Growth Numbers for Q1 2025 to Be at -1.8% Quarter-Over-Quarter.
US Job Cut AnnounCements in February have spiked to the Highest Level Since the Covid Recession as Well.
While All this have certainly weighed on Risky Assets Globally, Including Bitcoin and Crypto Assets, The Data Is Also Creating A Positive Backdrop Viasa.
Global Money Supple, ALRREADY CLOSE TO NEW All-Time Highs, Is Accelerating Again, Which Bodes Well for Scarce Crypto Assets Like Bitcoin. Bitcoin Generally Tends to Thrive in Weak Dollar Environments WHERE GLOBAL MONEY SUPPLY GROUWH IS ACCELERATING.
There is also increasing Probability that Crypto Assets Could Decouple from Traditional Financial Markets On Exchanges. Structural Inflows Into US SPOT BITCOIN ETFS and Continued Purchases by Corporation Worldwide Shoulder Continue to Contribute to this Pervasive Suppicit. TheSE Factors Will Most Likely Continue to Provide a Tailwind for Crypto Assets Over the Coming Months, Irrespective of the Macro Environment.
In any casse, the renewed propses for a docisive turnaround in monetary Policy Amid Global Growth Worries, Coupled with Pervasive Supple Scarcity, Could Drive. Into the Mainstream.
It Looks As if The Golden Era of Bitcoin and Crypto Assets is Just Getting Started.
–André Dragosch, Head of Research – Europe, BitWise
Ask An ExpertQ: With the Shift in Sec Leadership, Should Companies Expect A Favorable Regulatory Environment, or Are There New Risks They Need to Prepare for?
A: The Sec’s Shift Away from Regulation-by-Enforcement and the Formation of the Crypto Task Force Signal A Change in Approach, Rather than A Move to Lax Protection Against Fraud and Thef. Consumer Protection, Market Integrity and Cybersecity Remain Key Enforcement Areas. Companies Should Focus on Transparency and Fair Deling to Align With Expectations. Additionally, As We’ve Seen with Memecoins, Planettifliff Class Action Attorneys and State Regulators Are Likely to Fill Gaps in Federal Oversight. Market Valativity Will Also Increase of the Need For Strong Operational Resilience to WitHstand Those Risks.
Q. How does the Genius Act Compare to Other Global Regulatory Frameworks Like Mica, and What does this mean for companies operating in a US and Europe?
A: The Genius Act Differs from Mica in Its Approach to Stablecoin Regulation, Particularly in Its Emphasis on Global Adoption and Us Dollar Influence. While Mica Prioritizes Protection for Europe-Backed Stablecoins Within the EU, It Imposes Restrictions on Non-Euro Stablecoins in Certain Use Cases. In Contrast, The Genius Act, As Propossed, Will Encouroge The International Use of USD-Backed Stablecoins, Reinforcing The Dollar’s Role in Global Payments.
For Companies Operation in Both Markets, The Act’s ReciproCity Provisions Could Facilitis Smootate Smooter Cross-Border Transactions and Regulatory Alignment With ALACAKS, PETENTALIALLYAllylyling Digital Assets.
-Bth Haddock, Managing Partner and Founder, Warburton Advisers
KEEP READING
- Despite Seemingly Large Bitcoin Etf Outflows, The Vast Majority of Investors Appear to Be Holding On.
- Strategy Plans to Sell $ 500 Million in Preferred Stock to Fund Its Next Bitcoin Purchase.
- Sec Commissioner Hester Peirce Shares Her Views on Her Agency’s Digital Asset Task Force.
X Icon
