As government regulation has tightened its grip over the past four years, the potential for groundbreaking innovation in the U.S. has been stifled. However, with the dawn of a new administration, there’s reason to be optimistic about the future of cryptocurrency and blockchain technology. A pro-innovation approach can help unleash free markets, empower individual entrepreneurs, and drive mass adoption of blockchain-based solutions. Market Institute President Charles Sauer analyzes the potential ramifications of a Republican sweep on the crypto landscape in a new article at Real Clear Markets.
He writes:
“The 2024 election offers a lot to be hopeful about – especially if the possible innovation wave becomes reality. In stark contrast to the last four years’ regulatory regime, Congress has the opportunity to unleash innovation in the U.S., beginning with cryptocurrency and blockchain. In anticipation of this growth, prices have already started rising with Bitcoin breaking above $100,000. However, the true growth isn’t going to be in prices, but it is the possibility of broader adoption of blockchain technology that is the most exciting.
Trump has tipped his hand toward wanting to be more active in the crypto space. The gloomy part is that this action will likely mean more regulations. But, for a market that currently exists primarily in a regulatory grey zone, this will likely give investors the assurance they need to enter the market. This could be the rocket fuel the industry needs to take off.
In fact, President-elect Trump has already nominated Paul Atkins as his new Chairman of the Securities and Exchange Commission, one of the largest indications that this administration is serious about fostering innovation. A former SEC commissioner, Atkins is much more friendly to the crypto and blockchain industries than his predecessor. A recent opinion piece from Bloomberg talks about the Atkins nomination succinctly, “I have no crystal ball, but I’m pretty confident that the SEC will shift from trying to make new law by suing crypto and other financial innovators to laying out sensible best practices in multilateral negotiations — with the regulator acting more like an umpire and less like one of the competing teams”
A pro-innovation approach means the doors for positive change and mass adoption will be opening wide. This is when America is at its best and we take big leaps forward in improving the lives of everyday people.
There are still headwinds though, as I wrote recently the biggest barrier to mass adoption is public knowledge. With strong headwinds for crypto tokens, it remains to be seen what the trickle-down effects for blockchain based products will be. And, even beyond education, the strong headwinds make sense. The current market is branded by guys that I wouldn’t buy a used car from. Lambos, memes, jokes, bros, and sales tactics that rely more on FOMO than on analytics seem to drive the crypto market.
Fortunately, this isn’t where the real innovation is going to take place, but the distrust makes sense.
There needs to be a more concerted effort to reach out to crypto-skeptics and bridge the knowledge gap. Given there are people who believe their “knowledge” of meme coins in some way makes them correct – I mean the “Hawk Tuah Coin” is crazy – but there is a path towards garnering interest in products, applicability, and utility of the blockchain.
Many big crypto firms are currently missing the mark and skipping the educational step. And the crypto ‘influencers’ don’t seem to care one way or the other. Maybe those individuals are just too busy driving their Lamborghinis to think about the future of the industry. But, educating the skeptics and uninformed will grow not just their customer base, but the consumer base of the whole market. Additionally, it can also inspire new developers, engineers, and innovators to solve problems to the issues we do not see yet.”
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