The recent outcome of the 2024 U.S. elections, with Republicans taking control of the White House, Senate, and Congress, could have a significant impact on the regulatory landscape for cryptocurrency in the country, according to analysts at S&P. This shift in power may lead to a more predictable rule-making framework for crypto regulation instead of enforcement-led measures. The U.S. has lagged behind other major markets in terms of regulatory clarity for digital assets. The lack of clarity has affected areas such as stablecoins and staking, with companies risking enforcement actions and legal disputes. The analysts predict that regulatory changes regarding stablecoins and crypto asset custody may occur in early 2025. The current regulations, like the SEC's SAB 121, have made crypto custody expensive for U.S. banks, but the new administration may reconsider these regulations, potentially enabling greater market participation. There are also discussions around Senator Cynthia Lummis suggesting that the Federal Reserve should acquire a significant amount of Bitcoin to protect against currency debasement and manage national debt. The analysts believe that even if this proposal doesn't pass, the narrative around Bitcoin is shifting, with increased attention on its role in traditional financial markets. The lack of involvement by the U.S. in global regulatory coordination has hindered blockchain innovation, and greater participation could help scale existing use cases. Overall, the regulatory transformation in the U.S. could bring clarity and open new opportunities for innovation and growth in the crypto space.



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