It’s the ultimate “changing of the guard” for cryptocurrency enthusiasts in America and worldwide.
Whether you’re invested in crypto or just interested in it, mark your calendars as a new era for digital assets is set to commence on January 20, 2025.
That’s when Donald Trump will be inaugurated and officially start his second term as the US president.
Irrespective of one’s political beliefs, cryptocurrency market participants and onlookers can’t afford to ignore the vast implications of the regime change in the world of crypto.
New faces, new opportunities
For what it’s worth, Securities and Exchange Commission (SEC) Chairman Gary Gensler did approve trading of some cryptocurrency exchange traded funds (ETFs) and options on those funds.
However, many commentators would claim that Gensler dragged his feet and only made those approvals reluctantly.
Rest assured, there will be little to no reluctance with the incoming administration.
President-elect Trump’s cabinet will be replete with new faces, not the least of whom will be Gensler’s replacement, Patomak Global Partners founder Paul Atkins.
Under Atkins, the SEC is expected to push for simpler oversight rules, a better understanding of new technologies, and a regulatory framework that supports innovation.
The installation of crypto-friendly faces in top governmental posts is one of the main reasons blockchain industry leaders like Binance CEO Richard Teng is optimistic about the market outlook explaining, “Crypto regulation developments are expected from the new US government in 2025, which will encourage more crypto participation across the market—especially from US based TradFi—and will help inform crypto legislation for other countries across the world.”
Teng continued:
There is also the potential of a Strategic Bitcoin Reserve in the US, which could be a significant development and lead to many other countries doing the same. In this scenario, Bitcoin could one day grow to new heights in terms of adoption.
That runway will certainly be clearer and smoother with Atkins at the SEC’s helm.
Trump emphasized in a social media posting that Atkins “recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
Joining Atkins in Trump’s new cabinet will be A.I. and Crypto Czar David Sacks, Presidential Council of Advisers for Digital Assets Executive Director Bo Hines, Office of Personnel Management Director Scott Kupor, and Council of Economic Advisers Chairman Stephen Miran.
Hines will lead the “crypto council,” a government entity to be installed upon Trump’s inauguration.
Additionally, Trump has tapped hedge fund executive Scott Bessent to serve as his secretary of the Treasury Department. There’s no doubt about Bessent’s pro-blockchain views as he’s called cryptocurrency “integral to economic freedom and innovation” and declared, “Crypto is about freedom, and the crypto economy is here to stay,”
At the very least, the next four years should enable new pathways to the widespread adoption, both institutional and retail, of decentralized assets.
As Ripple Chief Legal Officer Stuart Alderoty summed it up, “The war on crypto in the US led by the SEC under Gary Gensler is over which, hopefully, leads to a healthy regulatory relationship between the industry and financial regulators.”
Will the US be the “crypto capital”?
Starting on January 20, America will have a vocally pro-cryptocurrency president as well as a Republican majority in Congress.
With that, Trump could fast-track a multitude of laws promoting financial technology innovation and adoption.
At the same time, the crypto industry isn’t only anticipating rule changes.
After all, it will take more than regulatory shifts to fulfill Trump’s vision of the US as the world’s “crypto capital.”
Under Trump, America could become not only crypto-friendly, but crypto-forward.
The president-elect evidently has the heart of a HODL-er (“HODL” meaning Hold On for Dear Life to your Bitcoin) as he once declared, “For too long our government has violated the cardinal rule that every Bitcoiner knows by heart: Never sell your Bitcoin.”
In that vein, Trump may have an opportunity to apply the HODL-ing principle on a federal scale.
He promised, if elected, that “it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the US government currently holds or acquires into the future.”
Granted, Trump didn’t specifically vow to establish a strategic Bitcoin reserve for the US Nonetheless, the prospect of an official, national Bitcoin “never sell” policy should tantalize any blockchain denizen.
The waiting is almost over
Even prior to Trump’s second term, it’s fair to say that cryptocurrency’s adoption trajectory has been lightning-fast.
Still, that trajectory could steepen further after January 20.
It’s not just about the so-called “Trump trade” or various get-rich-quick tactics as the new, crypto-supportive administration takes office.
Rather, it’s a new chapter in the constantly unfolding story of decentralized digital assets, which many industry participants hope to be the most thrilling chapter so far.
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