Will US Government Support Crypto Growth?

Today in this article, we will dive deeper into how the United States, its government, and its regulations can shape the crypto market in the near future. 

The role of the United States in shaping and transforming early innovation has remained resilient and is among the leading Western nations with the highest number of earlier adopters. 

Americans and residents of Western countries have been termed early adopters of digital currencies and blockchain-based currencies. And as of August 2024, over 90 million U.S natives were using crypto. 

Does the United States have a big Crypto Market? 

In a report by Statista, it is noted that the crypto market in the United States is projected to generate $9,788.0m in revenue in 2024. It is worth noting that despite regulatory challenges and an unclear set of rules, the market capitalization and revenue are surging constantly. 

The number of cryptocurrency users in the U.S. is expected to surpass the mark of 185 million By the end of 2025; their surge in adoption is claimed to be fueled by people’s literacy about digital assets and evolving technologies and their potential. 

Some primary reasons that are regarded for the huge mainstream adoption of crypto are the efforts of giant companies to embrace the digital asset market, the green signal over Bitcoin spot ETFs trading, and the recognition of crypto as an investment by some leading courts in the United States. 

Roles of U.S Regulators & Regulations in the Success of Cryptocurrencies!

As per data, the U.S. has one of the toughest sets of rules that aim to safeguard its citizens; it is argued that it is hard to comply with the rules in the territory. 

The US government hasn’t legalized cryptocurrencies, but citizens are free to buy whatever digital currency they want. Several companies have their headquarters in the region that are leading the digital world. 

Agencies like the Securities and Exchange Commission the Department of Treasury, the Internal Revenue Service, and the Financial Crimes Enforcement Network have a keen eye on the crypto market and have been actively cracking down on illicit firms. 

However, in the broader finance market, there are allegations that the SEC and its chairman Gary Gensler have a rough attitude towards crypto and blockchain-based currencies which might hinder the growth of the market. 

Once, Gary Gensler quoted some of the major crypto exchanges as “likely trading securities,” so they are required to register with the SEC. “When a new technology comes along,” he added, “our existing laws don’t just go away.” Gensler has also urged more enforcement of stablecoins and other crypto tokens.

The nourishment of crypto requires recognition from the U.S. regulators and government.

The Assumed Future of Cryptocurrencies Worldwide

There are several rough claims by analysts and market experts that the cryptocurrency market in the United States is expected to mirror a staggering growth in coming years, probably if the government changes and Donald Trump, the former president, comes into power. 

Trump has gathered huge traction in the cryptocurrency market due to his pro stance over digital assets. 

After his announcement to contest the election, blockchain analysis firms tracked a crypto wallet that allegedly held more than $5 million in crypto coins and tokens and is owned by Trump. 

At the time of completing this piece, Trump was leading with 54.6% in the presidential winners’ list. Kamala Harris has a 44.8% chance of achieving victory, as per prediction available on Polymarket, a leading prediction platform. 

There are over two dozen crypto-based companies whose stocks are available for trading, and some leading them include Coinbase, Marathon Digital Holdings, Core Scientific, and many others on the list. The number of publicly traded crypto service offerings companies is claimed to grow at an appreciable pace in the coming years.