Circle CEO Jeremy Allaire is optimistic about President Donald Trump’s potential to enact policies favorable to the crypto industry. Speaking at the Reuters Global Markets Forum during the World Economic Forum in Davos, Allaire highlighted the urgency of reversing restrictive measures like the SEC’s Staff Accounting Bulletin (SAB) 121. This regulation effectively penalized banks and financial institutions for holding cryptocurrencies on their balance sheets, hindering the integration of digital assets within traditional finance.
Circle, the issuer of USD Coin (USDC), has been a vocal advocate for regulatory reforms to support innovation in the crypto sector. The company demonstrated its commitment by donating $1 million in USDC to Trump’s inauguration committee, showing confidence in the administration’s potential crypto policies.
Despite Allaire’s optimism, Trump’s inauguration speech did not mention Bitcoin or crypto specifically. Instead, he focused on topics such as tariffs, immigration, and energy independence. This lack of mention left investors speculating about the timing of potential crypto-related announcements.
On the day of the inauguration, the market experienced significant volatility. Bitcoin surged to a record high of $109,000 before falling to a low of $100,000. Currently, Bitcoin is maintaining a price level of roughly $103,500.
Since Trump’s election in November, Bitcoin has rallied nearly 50%, with investors hopeful for favorable policies. Institutional interest in digital assets remains strong, with Bitcoin exchange-traded products (ETPs) recording $1.9 billion in inflows last week.
In a show of momentum, Trump’s newly launched memecoin, TRUMP, debuted on the Solana blockchain and saw a 490% increase in value within 24 hours. The token’s market capitalization reached nearly $11 billion before a sell-off corrected its value.
While a proposed strategic Bitcoin reserve is still speculative, betting platforms suggest a 60% chance of such an initiative materializing within the year. Industry leaders are optimistic that Trump’s presidency will lead to a period of growth and regulatory clarity for cryptocurrencies, promoting broader adoption and integration across financial systems.