Crypto awaits Trump’s CFTC Chair pick after Behnam’s exit – What’s at stake?

01/10/2025 13:00
Crypto awaits Trump’s CFTC Chair pick after Behnam’s exit – What’s at stake?

Trump is advocating for clearer Bitcoin regulations, but that’s just the start of his crypto agenda. Will he deliver?

Trump Bitcoin

  • Trump built a significant part of his election campaign around the frenzy associated with crypto
  • Now, the spotlight is on him to turn those promises into action

A week into 2025, and volatility is already in full swing. Investors are clearly aligning their strategies with Trump’s next moves. While his promises to make the U.S the ‘crypto capital’ have been on the table, it’s clear that it’s time for these crypto pledges to move from paper to reality.

Just like a business deal

Less than 10 days until President-elect Trump returns to the White House. No doubt, the Democratic Party’s shortcomings over the past four years have paved the way for his second chance. 

However, it was his focus on the booming crypto market that truly gave him a decisive edge. The outcome? A massive bull run that shattered psychological barriers as billions of dollars surged into the market.

It’s clear the crypto community firmly backed Trump’s campaign. Now, with victory in hand, they may want a piece of the action.

First up – An executive order to establish a strategic Bitcoin reserve, one that’s quickly shifting from a bold idea to an economic necessity.

But that’s not all. Trump is also pushing for clearer Bitcoin regulations focused on buyer protection. To make it happen, he’s already narrowed down half a dozen potential candidates to lead the Commodity Futures Trading Commission (CFTC), following the departure of former Chair Rostin Behnam.

Clearly, Trump is making bold moves. But with the stakes higher than ever, this isn’t just a plan to reignite the crypto market – It’s a race against time.

The clock is ticking

Why the urgency? In just the last 24 hours, $89.30 million in BTC long positions were liquidated, while the crypto market saw a staggering $380.40 million vanish. BTC’s latest plunge – from $102k to $91k in under three days – shows how wild the volatility has become.

crypto

Source: Coinglass

What makes it worse? The dip came out of nowhere, with no technical indicators warning investors. Many were caught off guard, facing massive losses. Reclaiming that lost capital? It’s going to be an uphill climb.

All eyes now turn to Trump and his promised crypto regulations. His escalating feud with the Fed has sparked investor hope. Perhaps, an interest rate cut could be on the way. 

However, the challenges don’t end there. Trump’s tax and spending cuts risk leaving the government short on cash, making it even tougher to manage the $36 trillion national debt – with $7.6 trillion set to roll out in the coming days. 

This could force Trump to rethink increasing borrowing costs, which might send fresh shockwaves through the crypto market. Clearly, his decisions now extend far beyond crypto. Brace yourself!

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