The crypto community is rallying behind Donald Trump’s inauguration set for January 20, viewing it as a turning point that could reverse years of regulatory challenges faced under the President Joe Biden administration.
This sentiment is echoed by numerous stakeholders in the industry who believe that the new administration will foster a more supportive environment for cryptocurrency and blockchain technology.
Anticipated End Of Debanking Signals Crypto Sector Revival
The New York Post reports that with Donald Trump’s ascension, industry leaders are reportedly “optimistic” about a series of potential policy reversals aimed at legitimizing cryptocurrency.
The promise of immediate executive orders could pave the way for the establishment of a Bitcoin reserve and an end to the controversial practice of debanking—where banks refuse to work with clients involved in cryptocurrency.
The anticipated end of debanking is seen as crucial for the industry’s revival, as it would enable banks to engage with digital assets, something they were discouraged from doing in recent years.
Under the Biden administration, the cryptocurrency sector faced what many described as regulatory “harassment.” Initiatives like “Operation Chokepoint 2.0” aimed to restrict banks from interacting with cryptocurrency firms, resulting in a chilling effect on startups and innovation.
Investors like Nic Carter and Marc Andreessen characterized these actions as a form of “privatized sanctions,” pushing many crypto companies to relocate offshore or abandon their plans entirely.
Carter noted, “Banks never tell you why they’re debanking you,” highlighting the opaque nature of these decisions, which often cite vague reputational risks. The impact was profound, leaving the industry stifled and startups struggling to find a foothold.
America-First Reserve Featuring Solana And XRP?
While many celebrate the expected pro-crypto initiatives proposed by the President-elect, one proposal has sparked debate: the idea of an America-first strategic reserve prioritizing US-based digital currencies, including Solana and XRP.
The report further reveals that President-elect Donald Trump has engaged with the founders of these digital assets, indicating a possible receptiveness to the concept.
However, concerns loom over whether this focus on select coins such as XRP and Solana could undermine broader support for Bitcoin, a digital asset that many in the community view as the cornerstone of the digital asset movement.
At the time of writing, XRP has reached its highest valuation in seven years, hitting $3.20, with significant gains of 16% in the 24-hour time frame alone.
Featured image from CNBC, chart from TradingView.com
