Bitcoin of over $100,000 for the first time on December 5, soaring from approximately $69,000 just a day before the U.S. presidential election a month prior.
This dramatic price surge has led investors, particularly cryptocurrency enthusiasts, to closely monitor developments in U.S. politics.
During his campaign, Donald Trump promised to establish the U.S. as the “crypto capital of the planet” and has recently suggested that the national debt could eventually be settled in cryptocurrency.
“Trump pledged various policies that would favor Bitcoin and cryptocurrency as a whole during his campaign. We are already witnessing the results, with Bitcoin reaching all-time high prices,” noted Nirun Fuwattananukul, CEO of Gulf Binance, a Thai joint venture with the world’s largest crypto exchange and Gulf Energy Development.
According to Mr. Nirun, these policies are likely to be enacted, especially since Trump’s second term is expected to see a Republican majority in both the Senate and House.
“This majority will allow him to effectively push his campaign policies. His campaign advisors, notably Elon Musk and Robert F. Kennedy Jr., are both strong proponents of Bitcoin, so I believe these promised policies will come to fruition,” he told the Bangkok Post.
CRYPTO BOOST
Mr. Nirun indicated that prior to the U.S. election, Bitcoin had already gained considerable recognition and adoption worldwide. In the U.S., various institutions and state pension funds are beginning to invest in the leading cryptocurrency.
“Upcoming regulations, if enacted, would further integrate Bitcoin into the mainstream. I believe Bitcoin will eventually become a widely accepted investment asset, akin to gold or silver,” he stated.
He also expects that the broader cryptocurrency market will follow Bitcoin’s lead, with more digital assets achieving mainstream status, similar to Ethereum.
“The key drivers will be increased innovation, supportive U.S. policies, and more capital returning to America, which will result in new applications and use cases that promote crypto assets towards mainstream adoption,” Mr. Nirun explained.
The market is anticipating that Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), will leave his position at the end of Joe Biden’s administration, with investors hopeful for a more cryptocurrency-friendly successor in early 2025.
“He has been very active in enforcing regulation on Bitcoin and crypto assets. The new SEC chair is likely to share views more aligned with Trump’s perspectives,” he noted.
Last Wednesday, Trump announced plans to nominate cryptocurrency advocate Paul Atkins to lead the SEC. Mr. Atkins, CEO of Patomak Partners and a former SEC commissioner, has argued against excessive market regulation since leaving the U.S. stock market regulator.
However, Mr. Nirun cautioned that the benefits of favorable crypto policies from the new U.S. administration may take time to materialize.
“We need to wait for the right timing. Americans have pressing expectations for Trump to address issues like the economy and immigration first. It could be a while before he turns his attention to Bitcoin and crypto assets,” he said. “The complexities of crypto legislation mean drafting new laws will take time.”
The FIT21 bill, a comprehensive framework for digital asset regulation, has passed the House and is currently awaiting action in the Senate.
“If Trump aims to completely redraft the bill, that will further delay the process,” he added. “We hope the next SEC chairman will have a strategic long-term vision for cryptocurrency.”
Binance co-founder Yi He echoed this sentiment, noting that the introduction of products such as spot Bitcoin and Ethereum exchange-traded funds has expanded the industry’s reach and suggests a promising year ahead.
STABLECOIN OPTIMISM
Jeremy Allaire, CEO of Circle, issuer of the second-largest stablecoin, expressed optimism about global regulation within the sector. He believes the next 10-12 months will be pivotal for the stablecoin market, currently valued at around $170 billion, dominated by Tether’s USDT and Circle’s USDC.
He pointed out that this is just a fraction of the global financial landscape and the $130 trillion global electronic money market, indicating significant growth potential in the stablecoin sector.
Stablecoins, designed to maintain a fixed value relative to another asset or currency, are commonly pegged to traditional currencies like the U.S. dollar or euro, or other assets such as gold.
“The next 12 months is a crucial inflection point for stablecoins,” he remarked, as the regulatory frameworks in key jurisdictions are expected to materialize within the year.
Speaking at Binance Blockchain Week in Dubai, Mr. Allaire compared these early digital currency developments to the initial stages of digital media, where reduced communication costs spurred rapid growth and transformed industries.
He proposed that reducing transaction costs through programmable money could fundamentally change how value is transferred and managed in finance.
USDC has seen increased adoption across financial and payment networks, suggesting that stablecoins are set to become a foundational element of the digital economy, with real-world applications expanding, he added.
Regarding regulation, he remained cautiously optimistic, noticing a positive shift in sentiments toward stablecoins among policymakers in various countries, particularly
