Recent developments have emerged from Brazil, where federal deputy Eros Biondini is advocating for the creation of a national Bitcoin reserve. This initiative represents an effort to diversify the nation’s treasury assets through cryptocurrency. Meanwhile, across the Atlantic, significant shifts are on the horizon in the United States as Donald Trump prepares to take office.
Regulatory Changes in the U.S.
As Trump’s administration is set to begin, mounting reports suggest a potential expansion of the Commodity Futures Trading Commission’s (CFTC) regulatory powers specifically over certain cryptocurrencies. With around two months remaining until his inauguration, Trump’s incoming Republican administration appears eager to fulfill campaign promises, which emphasize cultivating a favorable environment for digital currencies.
A key aspect of this proposed change would involve enhancing the CFTC’s oversight of the burgeoning $3 trillion digital asset market. Such a move could limit the Securities and Exchange Commission’s (SEC) regulatory scope regarding cryptocurrencies. Criticism has followed outgoing SEC Chair Gary Gensler, who has been accused of stifling the digital asset market’s growth by largely classifying all cryptocurrencies, save for Bitcoin (BTC), as securities. This enforcement-heavy regulatory stance has frustrated many within the US cryptocurrency community.
Future of Cryptocurrency Oversight
With Trump’s pro-crypto administration taking shape, a notable shift in the federal government’s attitude towards digital assets seems likely. The SEC recently faced a setback when a Texas court overturned its problematic broker-dealer classification, further complicating its regulatory efforts.
Speculation suggests that the CFTC could soon be tasked with overseeing cryptocurrency exchanges and commodity market activities related to assets like Bitcoin and Ethereum (ETH). Chris Giancarlo, a former chair of the CFTC, has expressed confidence that, with the right funding and leadership, the agency could swiftly initiate regulation of digital commodities once Trump is in office.
Additionally, there are discussions about creating a new role of “crypto czar,” potentially filled by Giancarlo. This position would aim to streamline cryptocurrency policy in the Trump administration and possibly oversee an advisory council consisting of industry experts.
Brazil’s Legislative Ambitions
Alongside various pressing issues, including immigration and trade, Trump’s campaign has expressed a strong desire for the United States to emerge as the premier global hub for cryptocurrency activity. To turn this vision into reality, Trump is expected to appoint regulators who view digital assets favorably.
In the wake of these changes, institutional investors such as Bitwise and WisdomTree are optimistic that a renewed focus on the digital asset space could lead to approvals for exchange-traded funds (ETFs) linked to assets like XRP and Solana (SOL).
In another noteworthy development, Trump’s transition team is reportedly contemplating the establishment of a National Strategic Bitcoin Reserve (SBR) as a means to tackle inflation and other economic challenges. This proposal has attracted backing from influential asset management firms, including BlackRock.
As these discussions unfold, Brazil stands out with its own legislative ambitions. Eros Biondini’s proposal for a national Bitcoin reserve aims to broaden the country’s treasury portfolio, a move that reflects growing interest in cryptocurrency at a government level. Currently, Bitcoin is trading at $94,784, showing a 1.4% rise in the last 24 hours, marking a promising moment for digital currencies globally.
Source: Bitcoinist
