Cryptocurrency Industry Enters New Phase Under Trump Administration, According to Kevin O’Leary

In a passionate discussion on the future of the cryptocurrency industry, Kevin O’Leary, the chairman of O’Leary Ventures, emphasized that the industry is undergoing a significant transformation under the Trump administration. Speaking on "My View with Lara Trump," O’Leary suggested that the turbulent "cowboy era" of cryptocurrency is over, and the landscape is shifting toward a more regulated and integrated approach that will see digital currencies taking a central role in the American economy.

The Shift in Government Tone

“The reason they’re not comfortable with it right now is they’ve watched the cowboy era of crypto, but all the crypto cowboys are in jail or out of business,” O’Leary stated. He described the current moment as a “new phase,” noting a change in tone from the government regarding digital assets. O’Leary expressed confidence that the Trump administration will pave the way for regulations which will help bring cryptocurrencies into alignment with major financial institutions in the United States.

“We’re going to see cryptocurrency become a payment system, an investment vehicle, and an integral part of all sectors of our economy. Eventually, I believe crypto will be the 12th sector,” he predicted.

Trump’s Commitment to Crypto

Former President Donald Trump has made headlines for his forward-leaning stance on cryptocurrency, positioning it as a vital campaign issue for the 2024 election. In July, speaking at the world’s largest bitcoin conference in Nashville, Trump declared his ambition for the United States to become the "crypto capital of the planet" and a "bitcoin superpower." Since taking office in January, Trump’s administration has begun to operationalize these promises.

Just last week, Trump signed an executive order to establish a Strategic Bitcoin Reserve, which aims to bolster the industry following what he characterized as “years of corrupt attacks by the Biden Administration.” This reserve will not only include Bitcoin but also other digital assets such as XRP, SOL, and ADA.

Details of the Strategic Reserve

In outlining the strategic reserve, Trump noted that any Bitcoin involved will come from federal holdings obtained through asset forfeiture proceedings, meaning it will not incur costs for taxpayers. It is estimated that the U.S. government has approximately 200,000 Bitcoins, although a full audit of these assets has yet to be conducted. The executive order also calls for a comprehensive accounting of the government’s digital asset holdings.

David Sacks, appointed as the crypto czar, celebrated this move on social media, calling the reserve a “digital Fort Knox,” suggesting it will serve as a store of value rather than being sold off.

Industry Optimism and Call for Leadership

O’Leary emphasized the importance of this administration’s recognition of the cryptocurrency sector, declaring it a pivotal moment for the industry. He articulated a desire for the United States to lead in digital currency technology, stating, “The big news is that this will be the first administration that’s going to say this sector belongs in America.”

Thomas Pacchia, co-owner of Pubkey bitcoin bar, echoed these sentiments, stating the previous administration’s approach to cryptocurrency was “atrocious” and characterized by a lack of dialogue. He expressed optimism about the changes brought by Trump’s return, highlighting that it represents a “massive sea change for the industry.”

Conclusion

As the cryptocurrency landscape continues to evolve, O’Leary and others within the industry are hopeful that the Trump administration’s initiatives will lay a solid foundation for a robust and integrated cryptocurrency market in the United States. With ongoing regulatory developments and a commitment to establishing the country as a leader in this space, the future of cryptocurrency under this administration appears to be moving toward increased legitimacy and wider adoption.

For more updates, stay tuned to our ongoing coverage of cryptocurrency and financial industry developments.

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