On January 20, 2025, with the inauguration of President Donald Trump, significant developments are expected in the cryptocurrency sector, especially regarding FTX. The exchange, previously declared bankrupt, has announced the start of repayments to creditors, with an initial distribution of 1.2 billion dollars.
Trump’s executive orders on cryptocurrencies and the novelty of FTX
According to sources close to the administration, Trump plans to sign a series of executive orders as early as his first day in office, some of which will directly affect the cryptocurrency sector. Among the measures under discussion are:
- Revocation of previous policies: the repeal of regulations requiring banks to classify cryptocurrencies as liabilities is expected, thus facilitating crypto businesses’ access to banking services.
- Creation of a strategic reserve of Bitcoin: the administration is considering the establishment of a national Bitcoin reserve, with the aim of consolidating the position of the United States in the global cryptocurrency market.
- Establishment of an advisory council on cryptocurrencies: the formation of a body dedicated to providing advice on policies related to cryptocurrencies is planned, promoting innovation and American leadership in the sector.
These initiatives reflect the intention of the Trump administration to support and promote the adoption of criptovalute in the United States, marking a significant change compared to previous policies.
In conjunction with Trump’s inauguration, FTX announced the beginning of reimbursements to its creditors. Users with credits up to 50,000 dollars are the first to receive payments, with an overall distribution of 1.2 billion dollars. This process represents an important step in compensating investors affected by the failure of the exchange.
To receive the funds, creditors must complete the KYC (Know Your Customer) verification and submit the required tax documentation through the FTX customer portal. Distributions will begin 60 days after the Chapter 11 plan becomes effective, expected in January 2025.
Implications for the bull and bear cryptocurrency market
The intersection between the new policies of the Trump administration and the beginning of FTX refunds could have a significant impact on the cryptocurrency market. On one hand, the government’s pro-crypto initiatives could stimulate adoption and innovation in the sector, increasing investor confidence. On the other hand, the injection of 1.2 billion dollars into the market, resulting from FTX refunds, could influence the liquidity and volatility of cryptocurrencies.
Analysts suggest that a significant portion of these funds could be reinvested in cryptocurrencies, contributing to a possible price growth. However, the overall effect will depend on the individual decisions of the creditors and the prevailing market dynamics.
Final Considerations
The moves of Donald Trump and the reimbursements of FTX represent two crucial events for the cryptocurrency market. On one hand, the favorable approach of the Trump administration could inaugurate a new era of innovation, encouraging the adoption of cryptocurrencies through clearer policies and strategic incentives.
On the other hand, the return of capital to FTX creditors offers an opportunity to restore trust in the sector, after the scandal that undermined the credibility of the exchanges.
However, these dynamics also present challenges. The distribution of funds from FTX could influence market liquidity and volatility, while Trump’s political decisions will be closely monitored to assess their long-term impact.
In a context where regulation and innovation intertwine, 2025 could mark a turning point for the entire crypto ecosystem, redefining balances and opportunities.
Source: https://en.cryptonomist.ch/2025/01/14/ftx-ready-to-distribute-1-2-billion-to-creditors-possible-impact-from-trumps-moves-on-crypto/