Could it redefine the American market?

The return of Donald Trump to the presidency could transform the future of cryptos in the United States, as this re-election arouses both hope and apprehension. Some players in the sector see this as an opportunity for more favorable regulation, while others question the real intentions of the future administration. Indeed, while the United States occupies a predominant place in the development of crypto, Trump’s policy on this sector could redefine standards and influence the price of assets, particularly Bitcoin.

Towards more flexible regulation?

In this context, several observers believe that the new Trump administration could adopt a more flexible approach to crypto regulation. “Trump’s victory is a decisive change for the crypto industry in the United States, but also internationally,” says Boris Bohrer-Bilowitzki, CEO of Concordium. He adds that the future president could curb the bureaucratic policies that have so far hampered the development of crypto companies and these assets. The Republican presence in Congress, coupled with the prospect of a more favorable nomination at the head of the SEC, could accelerate this dynamic.

Speculation is rife regarding a reshuffle at the head of the SEC, currently led by Gary Gensler, a controversial figure in the crypto world. It is expected that Trump, upon taking office, will replace Gensler with a personality more open to digital innovation, such as Hester Pierce or Mark Uyeda, already members of the commission. This review could pave the way for long-stalled initiatives, including the establishment of specific frameworks for stablecoins and crypto ETFs, promising a new era for companies in the sector in the United States.

The challenges and uncertainties of the Trump approach

However, despite this optimism, many observers point to the uncertainties of a Trump presidency, particularly in terms of the protection of individual investors. As Timothy Massad, former chairman of the Commodity Futures Trading Commission, explains, “There is a risk that this approach primarily favors speculators and leaves retail investors in limbo.” Indeed, the elected president could encourage rapid market growth without putting in place sufficient safeguards to protect individuals from the risks of speculative bubbles.

The stakes also extend internationally, where Trump could view cryptos as a strategic tool against powers such as China. Thus, competition with China in the field of blockchain technologies and cryptos could become a central axis of American policy, as Trump seeks to position the United States as a world leader in this area. This geopolitical positioning could have regulatory implications, with measures aimed at attracting crypto companies and encouraging the adoption of digital solutions.

The arrival of Trump at the White House brings contrasting prospects for the cryptocurrency industry. Although a more permissive framework could encourage innovation and adoption, risk management and investor protection remain critical points for the sector. In a context of geopolitical rivalries, the American approach to crypto regulation will undoubtedly influence the evolution of the global market. It remains to be seen whether Trump’s ambitions will translate into concrete actions, meeting the expectations of an industry seeking stability and recognition.

Luc José A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.