The cryptocurrency industry is gearing up for a policy revolution, anticipating that President-elect Donald Trump's victory will usher in a new era of crypto-friendly regulations. As Bitcoin and other digital assets continue to soar, crypto executives are pushing for policies that would significantly boost the sector’s adoption and integration into the mainstream financial system.
With the prospect of a Republican-led government, including a Trump administration and a Republican-controlled Congress, the crypto industry is now eyeing substantial changes in regulatory oversight. Trump’s promises to be a "crypto president" and his potential support for a range of pro-crypto measures have sparked optimism in the digital asset space.
A Shift Toward Crypto-Friendly Policies
Crypto companies are looking forward to a friendlier regulatory environment, anticipating key policy changes that could unlock access to banking services, ease regulatory burdens, and pave the way for digital assets to thrive. Trump’s victory signals a potential departure from the more restrictive stance of the previous administration, which took a tougher approach toward crypto regulation.
Mike Belshe, CEO of institutional crypto platform BitGo, expressed his enthusiasm, saying, "We’ve had an administration that’s been very negative, and so we’re looking forward to unlocking that gridlock." Belshe, who hosted a fundraiser for Trump during the campaign, believes the president-elect has a strong mandate to deliver on his promises of supporting digital innovation.
Bitcoin’s Surge and Policy Optimism
Bitcoin's price has surged in recent days, climbing above $90,000, fueled by rising optimism surrounding Trump’s policies. Some analysts now believe that Bitcoin could reach $100,000, further boosting the value of the world's largest cryptocurrency. The industry’s hopes are riding high on Trump’s pro-crypto rhetoric and promises to reform the financial regulatory landscape.
Among the most anticipated measures is the creation of a crypto advisory council, a potential move that could shape the future of digital asset regulation in the U.S. Crypto leaders are already brainstorming who might serve on the council, hoping to elevate key industry figures who can help craft a crypto-friendly agenda within the new administration.
A Shift in Regulatory Tone
Under the Biden administration, crypto companies faced increasing scrutiny from the Securities and Exchange Commission (SEC) and other financial regulators. The SEC and Treasury Department cracked down on crypto firms for alleged violations of securities and anti-money laundering laws. Bank regulators also discouraged lenders from working with crypto businesses, creating a challenging environment for many companies in the industry.
With Republicans now in power, the crypto industry anticipates a more supportive stance from regulators. One of Trump’s key promises during the campaign was to establish a U.S. Bitcoin reserve, a policy initiative that many in the industry see as a game-changer. Marshall Beard, COO of the Gemini crypto exchange, highlighted that such a move would serve to legitimize the asset class in the eyes of the public and investors.
Easing Bank-Crypto Tensions
Another major concern for crypto firms has been access to banking services. Many digital asset companies have struggled to find banking partners due to regulatory concerns. With Trump’s expected policy shifts, crypto executives hope to see a loosening of the restrictions that have made it difficult for crypto companies to operate within the traditional financial system.
Kristin Smith, CEO of the Blockchain Association, a major trade group, suggested that an executive order from the White House could go a long way toward addressing these banking issues. "Something like that from the White House could go a long way towards fixing the problem," she said.
Fast-Tracking Crypto Legislation
In addition to regulatory changes, the crypto industry is gearing up for a push for new legislation that could expedite the mainstream adoption of digital assets. With Republicans expected to control the House of Representatives, crypto advocates believe they may be able to push forward smaller legislative items via the reconciliation process, which could bypass the usual lengthy procedures required for passing major bills.
In this environment, companies like Coinbase and Kraken are expected to play a key role in lobbying for crypto-friendly laws. Coinbase alone spent over $119 million backing pro-crypto congressional candidates, many of whom secured victories, including Ohio Republican Bernie Moreno, who defeated Democratic Senator Sherrod Brown, a known crypto skeptic.
With the new Congress set to convene in 2025, Kara Calvert of Coinbase believes the next session will be "the most pro-crypto Congress in history," opening the door for substantial reform that could reshape the future of digital assets in the U.S.
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