"Trump Keeps Promise to Make America the Crypto Capital... Speed Expected in ETF and Custody Services"

Trump's 'Crypto Working Group'

Advises the White House on Crypto Policy

SEC and CFTC Turn Pro-Crypto

"Expect Active Participation of Financial Institutions in the Crypto Market"

On the 21st (local time), Bitcoin (BTC), which surpassed $109,000 due to the anticipation of Donald Trump's inauguration as President of the United States, is currently trading at $103,500 as of 10 AM on the 24th, according to CoinMarketCap. At one point in the morning, Bitcoin surged to $105,000, but the increase has slightly decreased since then.

Bitcoin had been on a downward trend for the past three days. The lack of any mention of cryptocurrencies by President Trump on inauguration day weakened investor sentiment. However, the market is showing renewed optimism as President Trump signed the promised executive order on cryptocurrencies.

On this day, President Trump, accompanied by David Sacks, appointed as the head of cryptocurrency and artificial intelligence (AI), signed an executive order establishing the Crypto Working Group in the Oval Office. The Crypto Working Group will advise the White House on digital asset-related policies, involving government agencies such as the Treasury Department, the Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).

The outline of the crypto reserve plan that the market is paying attention to has also been drawn. The Crypto Working Group will draft a framework for crypto regulation and submit a report to President Trump within approximately six months, including legislative proposals for evaluating the national reserve of digital assets.

Additionally, the executive order includes regulations on stablecoins and a ban on central bank digital currencies (CBDCs).

Given President Trump's previous pro-crypto statements during his campaign, such as "I am the first Bitcoin President" and "I will make America the crypto capital," there is advice to pay attention to the Trump administration's future moves regarding cryptocurrencies.

Regulatory Agencies Are Speeding Up Reorganization

On September 24th (local time), SEC Commissioner Hester Peirce speaks at a hearing. / Photo: GOPFinancialServices YouTube capture

Major U.S. regulatory agencies are quickly reorganizing to align with the new administration's pro-crypto stance.

On the 22nd, the U.S. Securities and Exchange Commission (SEC) announced on its official website that Acting Chairman Mark Uyeda had launched a new crypto task force (TF). The TF aims to establish a comprehensive and clear regulatory framework for cryptocurrencies. The news that SEC Commissioner Hester Peirce, known as 'Crypto Mom' for her pro-crypto stance, will lead the TF has provided reassurance to the crypto community.

Just two days after the TF was launched, the SEC officially announced the repeal of the crypto custody accounting guideline (SAB-121).

The Commodity Futures Trading Commission (CFTC) is also speeding up its reorganization. Acting Chair Caroline Pham has removed most of the CFTC commissioners appointed during the Democratic administration. Additionally, Harry Jung, a former Citigroup executive, has been appointed to lead work on cryptocurrencies and decentralized finance (DeFi).

Kim Min-seung, head of the Korbit Research Center, said, "Figures like Mark Uyeda and Hester Peirce are well-known pro-crypto commissioners," adding, "Considering that the SEC has suppressed the growth of the crypto market with excessive lawsuits and legal ambiguity over the past few years, the fact that Commissioner Peirce is leading the crypto TF to create regulatory clarity is very encouraging."

The fact that the pro-crypto Republican Party has become the majority party is also expected to positively impact the speed of U.S. crypto policy. Kim Hyun-jung, a researcher at Kiwoom Securities, analyzed in a report the previous day, "Although there are no final bill passage cases among the bills proposed in the 118th Congress, bills that received high support are likely to be reintroduced in the 119th Congress." She added, "With a majority of pro-crypto lawmakers in both the House and Senate, there is growing anticipation for the reintroduction and swift promotion of bills," and "the U.S. crypto market environment is expected to improve in a favorable direction."

What Effects Can Be Expected?... "Speed in Crypto Businesses Like ETFs and Custody Services"

As the U.S. government has clearly turned pro-crypto, the development of crypto businesses in the U.S. is expected to accelerate. Kim, the head of the center, noted, "It's worth noting the content of the complete cancellation of existing crypto-related executive orders. Particularly, the repeal of the SEC's SAB-121 can greatly aid financial institutions in handling cryptocurrencies," adding, "Just hours before the executive order was issued, Morgan Stanley announced its intention to participate in the crypto market in cooperation with regulatory authorities, highlighting the significant meaning of the regulatory shift."

Indeed, there has been a recent surge in applications for crypto spot exchange-traded funds (ETFs). Currently, there are 33 crypto ETFs submitted to the SEC, including not only Bitcoin and Ethereum (ETH) but also Solana (SOL), Ripple, Litecoin (LTC), Official Trump (TRUMP), Bonk (BONK), and Dogecoin (DOGE). Eric Balchunas, a Bloomberg ETF analyst, stated, "The number of applications doubled after former SEC Commissioner Gary Gensler vacated his position," and "it could increase to 50 within 1-2 weeks."

Crypto custody services in the U.S. are also expected to become more active. Jung Koo-tae, CEO of InfiniteBlock, which operates a crypto custody business domestically, said, "The repeal of SAB-121 is expected to have a positive effect on crypto custody services," and "the previously separated fields of crypto and finance are expected to become more closely integrated."