Crypto in the Age of Trump: A Look Ahead to 2025

In perhaps what was a surprising turn of events, Trump will be returning to office as President of the United States of America after a 4-year hiatus riddled with legal battles and controversies. The impact on global economies hangs in the balance, with much at stake, considering the worldwide financial crisis leaving politicians struggling to meet the demands of consumers as they face inflation on every level.

During his 2024 campaign, Trump branded himself as the pro-crypto candidate, promising to launch a strategic national crypto stockpile if elected to a second term. With renowned pro-crypto supporters Elon Musk, Robert F. Kennedy, Jr., and Cantor Fitzgerald CEO Howard Lutnick behind him, the markets already saw a surge as his propensity to win became more imminent.

Bitcoin surged 10% to a record above $76,000 as his victory heralds wider crypto adoption and weaker regulation, and Crypto-linked stocks Coinbase and MicroStrategy moved higher as well in after-hours trading.

But what could a new Trump office really offer the world of crypto?

United States as the Crypto Capital of the Planet

In one of the first steps towards a more crypto-friendly nation, Gary Gensler was dismissed as SEC Chairman, whom he blames for the “regulation by enforcement” approach. It seems likely that, in an attempt to put in place more straightforward, growth-oriented policies, he will appoint a more crypto-friendly SEC leader.

Trump also remains opposed to CBDCs, which have the potential to influence global trends significantly. As central banks like the European Central Bank move forward with their digital currencies, the new president’s opposition may lead to increased scrutiny of the European Central Bank’s project which sparks concerns over its potential to crowd out the private sector.

Interestingly, despite the strict regulation in the USA until now, the country has remained a base for some of the biggest and richest cryptocurrency and digital asset companies in the world.

Trump’s election could unlock even greater potential by establishing supportive crypto regulation. With a pro-crypto Congress and supportive regulators, the U.S. could strengthen its lead and emerge as the world’s primary hub for decentralized finance.

Blockchain and Digital Payments: Could Trump Support Innovation?

One of the most prominent use cases for cryptocurrencies is their utility as a form of payment, and this will surely be one of the key touchpoints for eager investors, traders, and businesses alike. Already signaling an embracement of crypto payments, Trump Media & Technology Group filed a trademark application for TruthFi, which it described as a cryptocurrency payment processing platform.

This news, alongside the announcement that he'd be appointing billionaire Wall Street CEO Howard Lutnick - a major supporter of a crypto firm called Tether - to serve as secretary of commerce, is all seemingly very promising.

Yang Lan, co-founder of Swiss Web3 Bank Fiat24, says “In a rapidly evolving financial landscape, Trump’s leadership could very well pave the way for a more open and competitive payments ecosystem, benefiting both consumers and entrepreneurs alike. Whether you like him or not, those of us who have been in the sector since the early days are optimistic for the changes that will come in 2025.”

Ultimately, Trump’s approach is likely to be pragmatic, driven by a desire to boost the U.S. economy while maintaining a favorable environment for businesses, including banks. Let’s keep our fingers crossed for clearer, more defined regulation across the globe in 2025.