[NEWS] NYDIG calls not owning Bitcoin a "future liability"

NYDIG (New York Digital Investment Group), a US cryptocurrency investment company, said in its latest report on the 11th that "not holding Bitcoin (BTC) could become a liability in the future."

The report was created in response to the results of the US presidential election, and stated that the victory of former President Donald Trump and the increasing likelihood that the Republican Party will secure a majority of seats in both the House and Senate will "provide a major boost to the cryptocurrency industry."

One of the factors that will have a positive impact on the cryptocurrency industry is improved regulation. Until now, with regulations unclear, cryptocurrency-related companies have struggled with legal battles by the SEC (US Securities and Exchange Commission).

However, Trump has indicated his intention to dismiss SEC Chairman Gary Gensler as soon as he takes office as president, and has expressed his intention to work on improving the regulatory environment. In addition, NYDIG pointed out that since the heads of various government agencies are expected to be replaced as soon as Trump takes office as president, "it is highly likely that laws favorable to cryptocurrencies will be enacted."

Regarding regulatory development, the report states that the 21st Century Innovation and Technology Act (FIT21) and the Stablecoin Act, which stipulates issuance and backing assets, could have a positive impact on the cryptocurrency industry. As the Republican Party is positive about deregulation, it is thought that innovation will be prioritized and cryptocurrencies will benefit. However, due to the change in administration, it is unclear whether progress will be made in 2024, and the report explains that full-scale efforts may begin in 2025.

In July of this year, Senator Cynthia Lummis introduced the "Bitcoin Act of 2024," which states that the United States would purchase 1 million BTC as a strategic reserve. This is currently worth about 13 trillion yen, so if it is realized, it could have a significant impact on the cryptocurrency market.

The report points out that the impact on the industry may be that there may be changes to the legal measures taken by the SEC so far. It states that rather than filing lawsuits, it may prioritize supervision and guidance and reconsider the Wells Notice, which warns of legal enforcement action.

It also points out that all these positive factors will lead to banks and banks entering the cryptocurrency field. With a more friendly attitude toward cryptocurrencies expected in the future, Bitcoin has now become a political necessity, and it has sounded a warning that there is "no excuse" for the general public, except for institutional investors, not to invest in it.

Source: Report
Image: Shutterstock

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