What are the possible effects that regulation of crypto have on the crypto market?

[Fidelia]

Let's say the United States releases a regulatory framework for crypto activities in the country. What would be the impact of such a development on the larger crypto market especially bitcoin. Would it rise in price immediately or possibly reduce in price?

 

[Augusta]

Some policymakers and scholars warn that regulation will cause trading activity to cross borders into less-regulated jurisdictions

 

[Suba]

When Donald Trump was elected president of the United States, his crypto-friendly stance made it more welcoming to investors, miners, and traders, leading to a sharp increase in crypto adoption, especially Bitcoin. However, if regulations in the United States are very strict, this will cause crypto to be squeezed, reducing liquidity and lowering prices.