Expert's Take: What The Next 100 Days Could Mean For Digital Assets

Donald Trump will be inaugurated today as the 47^th President of the United States, and the next 100 days are critical for the digital assets industry, especially with hopes still relatively high for a potential strategic Bitcoin reserve in the early days of Trump's second presidency.

Trump stole the hearts of cryptocurrency voters when he promised during campaign that he will support Bitcoin and the broader crypto industry and block regulations that stifle growth. However, things have been shaky over the weekend after the incoming President launched his official memecoin, Official Trump (TRUMP).

In an exclusive with International Business Times, Jason Allegrante, the chief legal officer at leading enterprise-grade blockchain and digital asset platform Fireblocks, discussed the importance of the first 100 days, considering how crypto has been "sidelined" in the past.

Bitcoin Hits New All-Time High

Ahead of the inauguration ceremony, Bitcoin passed its earlier all-time high when it reached $108,786 at one-point early Monday. The digital currency is up 3% in the day and remains unchallenged on the top spot of the world's largest cryptocurrencies by market cap.

However, under the surface of the all-time high are cracks are emerging in the relationship between Trump and the Bitcoin community following the TRUMP and MELANIA memecoin launches.

Even holders of altcoins beyond BTC have expressed dismay that Trump is pushing his own memecoin while the crypto industry anticipated his support across various aspects, including regulation and clearer policies.

Still, eyes are on the prize, especially after crypto executives went all in on to help get Trump back into office. Some prominent crypto leaders who supported Trump throughout his campaign also said they will hold him accountable to his promises.

"The industry is watching closely. The executive branch can accomplish a lot on its own initiative, including directing agency heads to freeze pending enforcement actions, a rollback of harmful rulemakings like SAB 121, and issuing new guidance to, among other things, liberalize access to the traditional banking system," Allegrante said.

Crypto's Past Heartbreak

Such moves would be "game-changers," he added, but it's not the first time crypto had its hopes high only to be crushed by the outgoing administration.

Notably, there was much optimism around Gary Gensler when outgoing President Joe Biden appointed him into the top position at the U.S. Securities and Exchange Commission (SEC), given his past talks on blockchain and Bitcoin. Four years on and Gensler has become a nemesis to the industry.

"Crypto has been sidelined before—there's no guarantee it will be prioritized over tax reform and other headline issues," Allegrante admitted.

A Crucial 100 Days for Crypto and Its Future

With Inauguration Day at hand, both the excitement and anxiety are mixing up as the crypto community awaits news on what Trump will and will not do based on his promises.

"The first 100 days will be a critical indicator of whether this administration intends to deliver on its campaign promise to provide clear rules of engagement and end the era of lawfare against the lawful digital asset industry," said Allegrante.

If Trump sticks true to his campaign promises, Fireblocks expects to see "new momentum around digital asset acceptance, starting with the actions of the executive branch," he said.

Among such executive moves are filling in key open positions such as the head of the Commodity Futures Trading Commission (CFTC), and more importantly, the swift confirmation of new agency heads that he previously nominated.

First in line is Paul Atkins, whose nomination was welcomed broadly in the crypto space. If confirmed, he will replace Gensler, who will resign today.

The first 100 days of Trump 2.0 will undeniably be observed closely by crypto users and leaders. However, Allegrante noted that proactive movement from the space is also necessary to push Trump to stick to his promises.

"If we want real progress, the crypto industry must double down on its advocacy efforts and refuse to leave the room where decisions are made until the job is finished," he said.

He went on to note that Trump's first 100 days are to be viewed with urgency, given how government-related moves on crypto have been painfully slow in the past. This time, the said period will determine the future of blockchain, digital assets, and crypto.

"The next 100 days will define whether this is just noise or a new era for digital assets in America," he said.