Former President Donald Trump’s win in the 2024 presidential election is sending ripples across several sectors of the market…
One area seeing a particularly strong reaction is cryptocurrency.
Bitcoin’s price has climbed over 20% since the election, while other prominent cryptocurrencies like Ethereum have also experienced a significant boost. And many crypto stocks saw a 20–25% rise following Trump’s win.
Remember: During his campaign, Trump positioned himself as the “pro-crypto president.”
Now, many crypto enthusiasts and investors are eagerly anticipating what Trump’s new administration will mean for digital assets in the coming years.
In this article, we’ll explore why Trump’s second term will likely be a boon for the crypto industry—and how investors can position their portfolios to capitalize.
A pro-crypto shift in regulation
Trump’s administration could foster a friendlier regulatory landscape for crypto.
Most notably, Trump plans to appoint a new SEC chair, and given his previous comments, it’s highly likely he’ll choose someone who’s shown strong support for crypto.
Rumor has it that “Crypto Mom” Hester Peirce—a current SEC commissioner and longtime advocate for digital assets—could be tapped for the position. Whether that’s true remains to be seen—but whoever is appointed will likely share these same pro-crypto views.
New crypto-friendly SEC leadership will mark a significant shift from the current one, which has taken a more aggressive stance toward digital assets.
It could pave the way for clearer guidelines that would remove the bad actors, pave the way for legitimate growth, and attract more institutional investors.
Speaking of which…
A shakeup for traditional finance
In recent years, major financial institutions, including the world’s largest asset manager, BlackRock, have moved into the crypto space. And a pro-crypto administration could drive even more interest from large investors.
With the potential for a regulated environment, institutions will likely feel more confident in entering the market, bringing with them substantial capital inflows. This development could stabilize the market, reduce volatility, and add much-needed liquidity.
What’s more, with a more supportive administration, banks might eventually embrace crypto as part of their portfolio of services, further legitimizing digital assets and enabling mainstream adoption.
But even if banks don’t get on the crypto bandwagon, decentralized finance (DeFi) could benefit significantly from regulatory clarity—leading to solutions that provide easier access to financial services without traditional banking middlemen.
Another area that could see exponential growth is security tokens—which allow for fractional ownership of assets like real estate or fine art. Many crypto enthusiasts believe that Trump’s victory could accelerate this technology’s path to the mainstream. As these digital securities gain traction, they could enable more people to invest in high-value assets, creating more liquidity and wealth-building opportunities.
A new era for crypto
The crypto industry has weathered a rocky relationship with U.S. regulators over the years. Trump’s victory and the potential for pro-crypto appointments like Peirce at the SEC bring hope that the market will mature under pro-crypto regulations.
For now, the crypto market is likely to remain volatile—and selecting the winners while avoiding the losers takes research. Make sure to do your due diligence when investing in crypto assets. Focus on those with experienced, disciplined management teams with a track record of success and proven technology that solves a real-world problem.
Or let Frank do the research for you by joining Crypto Intelligence.
