Bitcoin's role is no longer confined to finance alone, as the New York Digital Investment Group cautions it has become a "political imperative" following key GOP victories. As crypto-supportive Republicans take office, NYDIG warns that ignoring Bitcoin may soon carry financial risks for investors.
Bitcoin’s Role as a ‘Political Imperative’ Gains Traction
The recent election victories of Donald Trump and the Republicans have thrust Bitcoin into the center of political attention, forcing non-owners of the cryptocurrency to pay attention, according to the New York Digital Investment Group (NYDIG).
“While some investors have allocated to Bitcoin, the most common allocation for investors is still zero. There are no excuses now,” said Greg Cipolaro, chief of research for NYDIG worldwide, in a note dated November 11th. He went on to say:
“It is now becoming a political imperative.”
Non-Ownership Becomes a Financial ‘Liability’
"Not owning the asset is going to become a liability in the future," he continued. “Investors who may have found it easy to dismiss or ignore the asset for various reasons will continue to do so at their financial peril.”
The election of Donald Trump as president of the United States has contributed to Bitcoin's 84% annual increase and its continuous ascent to new highs of about $82,000, Cointelegraph shares.
GOP Majority and Pro-Crypto Policies
It appears that the Republicans will maintain their majority in the House after stealing a few seats from the Democrats, and they will also create a majority in the Senate. The crypto sector has supported these Republicans' initiatives.
The crypto community now considers itself to have a "place at the table at the highest levels of government," according to Cipolaro, which may cause blockchain and cryptocurrency to be "more accepted into the mainstream financial system."
2025: Potential for Pro-Crypto Regulation
"2025 will likely see new heads of nearly every major agency and department with, finally, real potential for pro-crypto legislation and regulation," he stated.
Among the candidates being considered for the position of SEC chair, which Trump has pledged to remove "on day one," is the legal director of Robinhood Markets, according to reports.
SEC Lawsuits and Regulatory Shifts
According to Cipolaro, the SEC's Gensler will significantly roll back the several lawsuits it has filed against cryptocurrency companies.
"A post-election leadership change may usher in a more accommodating regulatory philosophy," he said. “This could lead to the SEC seeking settlements with these companies, allowing them to operate within a clarified regulatory framework or, in some cases, dropping certain lawsuits entirely, especially if they’re viewed as not serving the best public interest.”
New Regulators with Pro-Crypto Stance
Additionally, he mentioned that the SEC has the option to drop any possible enforcement actions that were indicated in Wells letters sent to Immutable, Consensys, Robinhood, Crypto.com, and Crypto.
The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Treasury, and the Attorney General are all set to have new leaders who are "expected to shift toward a more pro-crypto stance," according to Cipolaro.
"Potentially supporting banks in providing custody services for digital assets including stablecoins," Cipolaro predicted that the new regulators will do toward crypto-working banks.