When Donald Trump reclaimed the presidency in 2024, few anticipated the immediate seismic shift his victory would trigger in the global crypto markets. Bitcoin, which had lingered around $68,000 before the election, skyrocketed past $100,000 within weeks, ultimately peaking at an unprecedented $106,000. Dubbed the “Trump Bump,” this dramatic surge wasn’t just the product of market speculation—it was fueled by the president’s vocal support for digital currencies, his crypto-friendly cabinet appointments, and a wave of deregulation promises that electrified investors. Trump’s sudden pivot from crypto skeptic to blockchain evangelist marks a defining moment for the industry, raising a pivotal question: Can his administration’s policies sustain this momentum, or will the pursuit of unchecked growth sow the seeds of financial chaos?
Experts predicted crypto-friendly cabinet appointments, first-day deregulation policies, and more investors getting on board to shape the dawn of the American crypto boom. All those predictions have come true.
The new commerce Secretary is a crypto fan. “The CEO of Cantor Fitzgerald, Howard Lutnick, head of Trump’s transition team and appointee as Commerce Secretary, is a major Bitcoin holder and investor in Tether, the largest stablecoin network,” says Bill Barhydt, CEO of Abra, a crypto trading and investments app.
The new chairman of the SEC is also a crypt enthusiast. “He has appointed crypto-friendly regulators like Paul Atkins to lead the SEC and Silicon Valley investor David Sacks as the AI/crypto czar,’ says Todd Ruoff, asset management expert and CEO of Autonomys. Also anticipated is the appointment of Travis Hill, one of America’s influential innovators, to lead the FDIC (Federal Deposit Insurance Corporation), which could be a green light for banking policy.
Perhaps most revealing days before his inauguration, President Trump became the first sitting U.S. president to launch his own cryptocurrency by introducing the $TRUMP meme coin on January 17, 2025.
Hosted on the Solana blockchain, the coin’s value surged from an initial $10 to over $70 within days, achieving a peak market capitalization exceeding $14 billion. Trump’s company, CIC Digital LLC, retains an 80% stake in the total coin supply, positioning him to benefit significantly from its appreciation. Additionally, entities associated with the coin have reportedly generated nearly $100 million in trading fees within the first two weeks of its launch, further augmenting the financial gains attributed to this venture.
Trump wasn’t always so bullish on crypto. In 2021, he called for more regulatory policies and called it a scam. But this kind of reversal isn’t unusual in the crypto industry according to crypto analysts like Alexandr Sharilov, Co-Founder at Coindataflow.com. “This skepticism was inherent in most people at the very beginning of Bitcoin’s creation,” Sharilov says. “More importantly, he has the team and policies needed for proactive change, and they seem to already be in his pouch.
The Next Four Years Under Trump
Crypto under Trump is far from bleak. Experts mostly see upsides, with a few downsides that can be managed. Johnny Gabriele, head of Decentralized Finance at CryptoOracle says, “The fear that crypto will one day “just go away” or “just go to zero” will quickly diminish, leading to new investors joining the fray (which has been made easier by the BTC and ETH ETFs).”
Gabriele says that the Strategic National Bitcoin Stockpile, which Trump mentioned at a BTC conference in Nashville last year, will be critical to how crypto runs moving forward. The BTC stockpile is projected to be a national reserve of seized BTC tokens, some of which were auctioned off under the Biden Administration.
Barhydt thinks these years will be broadly entrepreneur—and business-friendly, starting with crypto. He says Trump will work towards restoring billions of dollars lost in investment opportunities after regulatory attacks on trading during the Biden Administration.
“We believe that banks will begin to custody digital assets for their clients, investment advisors will start offering digital asset investment opportunities to their clients, and crypto startups that were previously attacked will now find a regulatory sandbox that they can work in that makes sense for all involved.
Ruoff agrees. “The potential repeal of SAB121 [Staff Accounting Bulletin 121, a banking policy requiring banks to list their customers’ digital assets as liabilities on balance sheets] under Trump’s administration would allow traditional financial institutions to hold crypto on their balance sheets, accelerating institutional adoption and market maturity. This approach will likely spur innovation and investment in the industry as entrepreneurial talent forced offshore will return to the U.S.”
The deregulation process that Trump will undertake might take some time, but Ruoff hopes to obtain regulatory clarity and reduce (and even eliminate) pending enforcement actions.
What will be most beneficial to the industry will depend on the execution and balance of innovations with consumer protection laws. “That is to say, I don’t think this will be the wild-west some are expecting.”
According to Ruoff, traders and investors should expect the advancements of key bills like the FIT21 Act, which aims to establish a clear framework for token classification and trading, and the Bitcoin Strategic Reserve Act, which could elevate Bitcoin to a national reserve asset. These bills could also shift oversight from the SEC (Securities and Exchange Commission) to the CFTC (Commodity Futures Trading Commission).
David Materazzi, an executive in currency markets and the CEO of Galileo FX, an automated trading platform, says Trump’s less regulation approach to management is just what crypto needs. “He’s not going to overcomplicate things or slow down the market. The timing’s right, too. Institutions like BlackRock and Fidelity [U.S. leading asset management companies] are already set up to capitalize. Trump knows how to attract capital, create jobs, and generate revenue.”
In addition to a less aggressive enforcement approach, creating a dedicated Crypto Council and Bitcoin Advisory Board could lead to better coordination between the government and crypto sectors. “Both retail and institutional investors would benefit from the eventual approval of more spot crypto ETFs (Exchange-Traded Funds), assuming these tokens first establish regulated futures markets,” Ruoff tells Worth. He also thinks financial institutions might be able to offer more crypto-related services and products due to relaxed regulations.
This would also supercharge competition from crypto-native companies as the playing field levels for SMEs (Small and Medium Enterprises). “Crypto payments are blockchain’s killer app. There’s no arguing the current latency in the ACH and FedWire systems would benefit from an upgrade to stablecoin rails.”
A downside to this–a more unrestrained trading market supported by the government–and a significantly large area of concern is the potential disruption to traditional financial systems. Ruoff affirms they’ll be hit hard.
“The inarguable efficiency of stablecoins for cross-border payments will challenge the position of existing financial intermediaries, potentially disrupting large revenue streams,” he says. “These intermediaries are floating trillions of dollars in short-term fixed-income markets, courtesy of the friction in the current financial markets. Large banks’ inability to interposition themselves in the flow of funds would lead to significant decreases in overnight interest income.”
Security Vs. Innovation
Perhaps Trump’s promise to make America the crypto capital of the planet is more easily attainable than imagined. Continents like Europe and Asia prioritize security and have tightened their crypto adoption and transaction controls.
In contrast, Trump is keen on deregulation; it could be relatively easy for his administration to achieve this goal.
However, concerns about the long-term security of crypto ownership under his tenure remain. Some experts are warning that the president’s new policies may make crypto easy to exploit by both local and foreign terrorist groups. In 2023, for example, a reported $5.6 billion was lost to crypto scams under Biden’s stringent regulations. An exponential expansion of the market could be a catalyst for more fraud.
“Growing the industry also increases the potential for market volatility, which could pose risks to less-informed investors. It’s important to note that these policies’ actual implementation and long-term effects remain uncertain,” says Ruoff.
“While the appointments and campaign promises have thus far been promising for the industry, the conversations about consumer protection are far from over. I would expect some sort of a regulatory framework for launching new projects, although it will be less of the round peg in a square hole that is the current Form S-1 for new equity listings.” He continues, “The administration should proceed cautiously so as not to allow a return to the scam-rife industry we saw 2 years ago.”
In another facet of security concerns, Materazzi predicts a possible, more dangerous finish for crypto. “The biggest risk isn’t regulation, it’s quantum computing,” Materazzi says. Quantum computers are already running inside large corporations and big government labs. “If that tech cracks Bitcoin’s encryption, it’s game over. Bitcoin goes to zero. That’s a bigger threat than anything else.”
The stakes couldn’t be higher as the U.S. embarks on this bold, deregulated crypto experiment under Trump’s leadership. The promise of an innovation-driven economy, boosted by institutional adoption and entrepreneurial resurgence, stands alongside the looming threats of financial instability, security vulnerabilities, and potential market exploitation.
“In the ideal outcome for traders/investors, there would be less regulation and more freedom to trade.” Materazzi says. “Institutions could thrive.“ Even so, he adds, “Nobody truly knows what crypto will do the next minute… let alone in 4 years.”
