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| By Ben Lily, Senior Crypto Analyst, Brownstone Research |
| Editor's Note: Today, you'll hear from Jeff's senior crypto analyst, Ben Lilly… |
| A critical shift in sentiment regarding crypto is coming. After years of regulatory overreach, we're now less than two weeks away from a very pro-crypto, pro-innovation administration entering the White House. |
| Ben and Jeff have been following these developments closely. There's a team of crypto enthusiasts about to come into power and that spells opportunity in the crypto industry. |
| Next Wednesday, January 15, at 8 p.m. ET, Jeff will dive into the details of the historic crypto boom that's on the horizon… and how to get ahead of it. |
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Something remarkable is happening in the crypto markets right now, and it's not what you might expect. |
| We're witnessing what I call a "sentiment capitulation" – but instead of playing out on price charts, it's unfolding in the halls of Washington, D.C. That's where Jeff is right now, and why I'm writing to you today. |
| Typically, market capitulation shows up as a "V" pattern on charts – that moment when traders throw in the towel, volume spikes, and prices hit bottom before sharply rebounding. |
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| Knowing when this is taking place in markets can be incredibly lucrative. |
| But it doesn't always show itself in price charts… |
| The Steamrolling Continues |
| The November election of Donald Trump marked a historic shift in the cryptocurrency market. |
| Trump platformed on being pro-crypto and pro-innovation. He's looking to embrace the sector and help make America a powerhouse in this industry. |
| It's a stark contrast to, well, everything we've seen out of the government so far…. |
| In fact, over the last year, the SEC and the current administration have gone after some of the most successful and compliant cryptocurrency businesses to date. |
| These include the publicly traded U.S.-based exchange Coinbase… the wallet providing access to 30 million active users in crypto named MetaMask… the biggest hub of developer talent at a private firm, ConsenSys… and the most successful decentralized exchange, Uniswap. |
| Those were just the big names. There were many others… And the combined actions of the SEC and the Biden administration have impacted countless smaller organizations, exchanges, and even startups. To say it's been a hostile environment the last few years is an understatement. |
| It's been an all-out assault. |
| Anti-crypto senators were rallying to create anti-crypto armies. Lawmakers and regulators have broken banking laws as they pressured banks to cut ties with cryptocurrency companies via Operation Chokepoint 2.0. |
| Their actions have even led to incredible developers getting jailed in what will soon be seen for what it was – a violation of the First Amendment's right to free speech. |
| The last few years could arm a writer looking to pen a non-fiction Orwellian nightmare book. |
| This is why if sentiment was a line on a chart, it was accelerating downward until November 4. The election marked the capitulation point. And ever since, sentiment has sprung back the other way at incredible speed. |
| In the last month, we've seen waves of crypto supporters filling up the highest ranks of the incoming U.S. administration. |
| This includes people like Donald Trump, Vice President J.D. Vance, Department of Health and Human Services Secretary Robert F. Kennedy Jr., SEC Chairman Paul Atkins, National Security Advisor Michael Waltz, Director of National Intelligence Tulsi Gabbard, Department of Government Efficiency heads Elon Musk and Vivek Ramaswamy, and so many more. |
| Negative sentiment is being steamrolled out of Washington, D.C. And that's exactly why Jeff is there this week. |
| In fact, even the wrongs of the prior years are being brought to light. |
| In what has been labeled Operation Chokepoint 2.0, federal regulators are being blamed for businesses related to banking to be unbanked. |
| When this viewpoint was first mentioned, it was dismissed as a conspiracy theory. But with the recent release of the Freedom of Information Act (FOIA), we are seeing our own government pressuring banks to withhold access to cryptocurrency entities or possible services. |
| These findings are catching up with some of the most influential in Washington, D.C., with Michael Barr being the most recent appointee to resign. His resignation comes shortly after the most recent correspondence between regulators and banks came to light. |
| And as the venture capitalist spearheading the uncovering of Operation Chokepoint 2.0, Nic Carter, shows below, the swamp is getting cleaned up. |
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| Source: @Nic_Carter on X.com |
| The cleanup is in full swing, and the replacements are ready to pave the road for crypto to run free… |
| The House's New Conductor |
| Representative French Hill (R-AR) was elected a few weeks ago to take over what is arguably the most important committee in the House of Representatives when it comes to the financial industry. He's now the chairman of the Financial Services Committee. |
| This is big news. |
| For those not following various bills that ebb and flow through Congress, committees are where bills start their journey. It's where they get drafted, earn support, get approved, and make their way to the House or Senate for voting. |
| Representative Hill has mentioned he plans to promote bills related to stablecoins and market structure during his tenure, meaning we can expect the committee's agenda will have cryptocurrency guidance high up on the priority list. |
| Hill went on to criticize Gary Gensler's law enforcement on cryptocurrencies, signaling his alignment with the incoming administration's view on the industry. |
| This bodes well for pieces of legislation that have previously stalled out in Congress that could have provided guidance for the cryptocurrency industry such as the Financial Innovation and Technology for the 21st Century Act or FIT 21 for short. |
| We can expect to see bills such as FIT 21 come back up in committee very early on in 2025 and likely have more support than ever. |
| The second piece of news was regarding the confirmation of SEC's Caroline Crenshaw… |
| Crenshaw has served as an SEC commissioner since 2020 and was picked for a second term by President Biden not too long ago. |
| She has been labeled as being more anti-crypto than Chairman Gary Gensler himself during her time at the SEC, mostly due to her voting against the approval of the spot Bitcoin ETF. |
| Democrats recently tried to get her nominated for another term before the Republicans take over in 2025. However, Senate Republicans were successful in getting the vote delayed, which ultimately prevented Crenshaw's approval before the end of the year. |
| This means Republicans essentially have the final say for who the Democrats can recommend to fill the Democrat position at the SEC. |
| It also means Crenshaw would join the other two SEC Democrats on the way out – Gary Gensler and Jaime Lizárraga. Jaime had to leave for personal reasons while Gensler has announced he plans to step down in January on the day of Trump's inauguration. |
| This type of change at the SEC is a full cleanse of SEC commissioners who have consistently pushed a harmful approach toward the blockchain industry. |
| The cryptocurrency industry could not have imagined a better situation for 2025. |
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