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Cardano and the Trump Administration? Why is ADA Skyrocketing?

Published 11/25/2024, 10:18 AM
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A recent news story hints at a possible cooperation between Cardano founder Hoskinson and the Trump Administration. ADA surged in price, but what’s the truth of the story?
 
In the crypto world – particularly within the Cardano community – a recent announcement has caused a stir: Founder Charles Hoskinson has reportedly expressed interest in collaborating with the Trump administration. The 37-year-old, known for supporting clear and transparent crypto regulations, publicly declared his interest in tighter cooperation with US authorities. However, there is no official confirmation of any potential partnership with the Trump administration.

Despite this, the price of Cardano’s native cryptocurrency, ADA, has surged dramatically, recording gains of over 100% in the past week. During his campaign, Trump frequently presented himself as a “crypto president.” In July, he advised attendees at an event to “never sell their Bitcoin.” Recently, Trump announced his intention to “end the regulatory chaos in the crypto market” and position the U.S. as a leading hub for cryptocurrencies.

Hoskinson’s Vision for Clear Crypto Regulations

Over the years, Ethereum co-founder Charles Hoskinson has repeatedly criticized the unclear and inconsistent regulatory environment for the crypto industry. He has particularly pointed out how regulators, such as the Securities and Exchange Commission (SEC), have treated different cryptocurrencies inconsistently, leading to uncertainty and frustration within and beyond the industry – with the Ripple XRP case being the most prominent example. In a recent live stream, Hoskinson hinted at his willingness to spend considerable time with lawmakers to actively shape crypto policies.
  
Through his company, Input Output Global (IOG), Hoskinson aims to establish a department dedicated to advising U.S. authorities and legislators on developing clear and reliable crypto regulations. According to Hoskinson, this new division will focus on bipartisan initiatives and constructive collaboration with the government to define the regulatory framework for the crypto industry.

This department is expected to be based in Washington, D.C., home to the US President. The proposed regulatory guidelines will reportedly draw upon key elements of the Responsible Financial Innovation Act (RFIA) and the Financial Innovation and Technology for the 21st Century Act (FIT21).
 
Hoskinson emphasized his goal of creating a stable environment for the industry, not seeking special treatment for his own project. Instead, his focus lies on legal stability and a reliable framework that fosters long-term innovation and investment in the crypto space. However, no official confirmation or formal offer has been made by the Trump administration.

Hoskinson clarified that he does not currently seek a formal role in government but intends to promote dialogue and share his expertise through his office.

Dubious Speculation?

The recent price movements of Cardano’s ADA token underscore the notion that crypto investors are often more willing to embrace speculative developments than those in traditional financial markets. A similar example occurred in April this year when rumors circulated that asset manager BlackRock (NYSE:BLK) was planning to tokenize its $22.3 billion ICS US Treasury Fund on the Hedera blockchain.

In an environment still fraught with legal uncertainty, investors frequently seek hints of regulatory stability. In the absence of reliable information, many market participants opt for speculative investments to get ahead of potential market trends.

At Market Intel (NASDAQ:INTC), we strive to identify upcoming price movements early and provide our readers with trading opportunities highlighted by specific Target (NYSE:TGT) Zones. Unlike dubious speculation, we rely on the Elliott Wave principle, combined with numerous other indicators we monitor in the background.

As shown in the chart below, we had already assumed Cardano’s ADA coin to be in an impulsive Wave [iii] prior to its recent surge. Accordingly, strong increases were to be expected, with the peak of this movement projected well above the resistance at $0.81.
We had already assumed Cardano’s ADA coin to be in an impulsive Wave [iii] prior to its recent surge. Accordingly, strong increases were to be expected, with the peak of this movement projected well above the resistance at $0.81.
For insights into long-term trends and upcoming entry points, our readers receive daily updates.

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