In the past couple of years, the cryptocurrency scene in the U.S. has been greatly affected by changing governmental policies and the new regulatory environment.
Since the start of this policy-driven shift, several coins have emerged as clear winners. $XRP and $ADA have both solidified their places as key components of the crypto landscape, while $SOL is starting to get some love as a potential part of the U.S. strategic reserve. As the Biden administration formulates its policies and positions, the effects of these developments are becoming more clear.
One of the most notable stories of the post-Trump period is the rise of $XRP and $ADA. Both cryptocurrencies are reaping the rewards of a changing regulatory landscape, and both are making real strides in the U.S. market.
$XRP (the token that powers the Ripple network) has become a symbol of resilience during and after its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Despite a plight that would have sunk most assets, $XRP has remained steadfast and is, by many observers’ accounts, growing into a major player in the market for cross-border payments. One reason is that the Ripple network (which uses $XRP as its payment token) is proving to be a better alternative to existing payment systems, such as SWIFT, and to the Visa and Mastercard kinds of payment systems that we are using more and more.
$XRP has so far dodged the bullet of becoming a security—a kind of ‘asset law’ that the Trump administration’s more relaxed regulatory approach allowed to become a law of the land.
In the same way, $ADA, the native token of the Cardano blockchain, has also sprung forth as a key winner. Cardano’s adherence to sustainability, scalability, and a research-driven methodology for their blockchain technology directly aligns with the regulatory expectations evolving in the U.S. market.
Under the stewardship of founder Charles Hoskinson, Cardano has distinguished itself as a blockchain ecosystem that not only is friendly to its end-users but also meets, and even anticipates, the global regulatory standards that seem to be emerging almost daily.
As the U.S. government seeks to recognize and even encourage the kinds of innovative blockchain developments that seem to be popping up all over the place, $ADA has, in essence, taken off like a rocket in this environment.
Where $XRP and $ADA have established themselves as influential forces in the U.S. crypto market, another cryptocurrency, $SOL (Solana), is emerging as a possible beneficiary of the latest regulatory developments. After government officials dropped hints about its possible inclusion in the U.S. strategic reserve, $SOL has gained significant attention from both institutional investors and policymakers. Solana’s fast transaction speeds, low costs, and growing ecosystem make it an attractive option for both public and private sector blockchain solutions. As more governments and organizations explore the potential of blockchain technology, $SOL appears well-positioned to take advantage of these opportunities.
Recent events in U.S. policy have also started to favor some other cryptocurrencies. Take $AVAX (Avalanche), for instance: It fully meets all the necessary criteria for inclusion in the U.S. strategic reserve, but is still awaiting official recognition. Avalanche is a candidate for such adoption—not just because it seems like a good fit, based on its characteristics (which include throughput and latency issues that make it much more government-friendly than, say, $ETH), but also because there’s a good precedent at this point for government initiatives to use blockchain solutions.
In the same way, newer competitors such as $SUI, $FIL (Filecoin), $APT (Aptos), $NEAR, and $MOVE are forging ahead more than ever, thanks to the attention— and in some cases, the invitation— of White House officials and other government actors. With U.S. government officials giving these tokens notable attention and recognition, the interest among investors and developers is spiking. With the backing and recognition of such influential governmental bodies, these projects certainly appear to be on a fast track to earning a seat at the table of the ever-broadening digital economy.
Policymakers are paying heed to these nascent tokens, with their strong tech underpinnings, because they see them as potentially very important for the future of blockchain and decentralized technologies. And I suspect they are paying more attention to them now because the regulatory picture is clearing up, and the U.S. government in particular seems to be exploring with renewed vigor the ways in which public and private sector applications can use blockchain technology.
Although the U.S. is doing several favorable things for major cryptocurrencies, they are quite different from the conversations happening around memecoins. When it comes to tokens like $TRUMP, $MELANIA, $BONK, and $DOGE, the U.S. has given no indication that they are even on its radar, let alone being considered for inclusion in the strategic reserve. In fact, the only serious talk I have seen about these tokens is in the context of how to regate or deal with a situation that could be problematic for the U.S. dollar. Unfortunately, I have to conclude that a lot of these tokens are just tools for speculative investment. And, in the case of $TRUMP, $MELANIA, and $DOGE, they are pretty silly tools.
For example, the cryptocurrency Dogecoin, $DOGE, which initially drew attention as a joke coming from an internet meme, has captured quite a following. Still, it seems an unlikely candidate for any serious recognition by institutional entities that operate in the real world, given that it has no apparent use case beyond being a kind of meme-driven currency. While other so-called “memecoins,” like $BONK and $TRUMP (yes, there’s a cryptocurrency named after the former president), may be enjoying a moment of social media buzz, they don’t have the kind of infrastructure or technology that would allow them to, say, meet the demands of the U.S. strategic reserve.
Conversely, tokens such as $LINK (Chainlink), $LTC (Litecoin), $DOT (Polkadot), and $HBAR (Hedera Hashgraph) are appearing to be more realistic candidates for the strategic reserve. These tokens have solid blockchain platforms with real-world applications, strong developer communities, and considerable institutional interest. As the U.S. government keeps looking into the possibilities of blockchain technologies, these projects are likelier to be part of any consideration for strategic reserves or other government-backed initiatives.
The U.S. government’s approach to cryptocurrency and blockchain technology is creating new opportunities for a range of digital assets. As these policies continue to develop and gain clarity, several cryptocurrencies are likely to remain foundational to the ongoing evolution of the U.S. crypto landscape. These include:
– $XRP
– $ADA
– $SOL
– $AVAX
The future may be less certain for memecoins, but serious blockchain projects are growing and innovating. That means there’s more and more potential for cryptocurrencies to be a big part of the global economy. As the regulatory environment evolves, the next wave of crypto winners will be the projects that can innovate, comply, and offer solutions that make a difference in the real world. And it’s the next couple of years that will shape a lot of U.S. crypto policy.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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