Expectations are high that cryptocurrencies will enter a golden era under President Donald Trump, who is set to return to the White House by the end of this month. Many cryptocurrencies, including Bitcoin, have recently reached record highs following Trump’s victory in the U.S. presidential election.
A detailed report published by the Financial Times and reviewed by Al Arabiya Business highlighted that Trump’s second son, Eric, stated at a significant conference in Abu Dhabi last month that his father would fulfill his promise to be "the most crypto-friendly president."
The newspaper added, “The dawn of Trump’s second term promises to mark a turning point for cryptocurrencies, bringing them out of the shadows into the mainstream, free from the levels of regulatory scrutiny faced in recent years.”
A Golden Era for Crypto?
Industry insiders believe that the newly elected president and a Republican-controlled Congress will pave the way for a golden era in cryptocurrency.
During his campaign, Trump promised to establish a strategic Bitcoin reserve, effectively turning it into a reserve asset. He also pledged to create a cryptocurrency advisory council.
Crypto holders are ecstatic. When Bitcoin crossed the $100,000 mark for the first time, a month after the election, Eric Trump reportedly called his father at 6 a.m. to share the news.
The Financial Times noted that the resurgence of cryptocurrencies marks a dramatic shift in fortune compared to just two years ago when the collapse of Sam Bankman-Fried’s exchange in late 2022 caused a global crisis. Bitcoin’s price plummeted to $16,000, leaving many wary of the industry.
“This is a transformation of almost mythical proportions,” said Yesha Yadav, associate dean at Vanderbilt Law School. “It’s miraculous—a shift that was unimaginable even at the start of this year.”
Regulatory Easing and Institutional Adoption
A more crypto-friendly administration could encourage record inflows, more deals, and institutional funds. Traditional financial players may feel less apprehensive about regulatory crackdowns.
However, Iswar Prasad, a senior fellow at the Brookings Institution, warned, “The combination of greater legitimacy and lighter regulation genuinely concerns me. Wider adoption of cryptocurrencies at both retail and institutional levels could definitely pose certain risks.”
As more investors are lured back to the volatile market, the consequences of a price crash could be more damaging than previous crypto downturns if the asset becomes increasingly intertwined with the traditional financial system.
A Shift in Policy
Bill Hughes, senior counsel at ConsenSys, commented, “This is a fresh start in many ways,” referring to Trump’s return to power. He added, “The previous administration adopted a scorched-earth approach to cryptocurrencies. Trump’s election represents a shift from the highly adversarial environment we’ve seen to a coherent, market-friendly stance.”
Crypto executives are already rallying to align with Trump. Chris Marszalek, head of Crypto.com, recently met the president-elect in Florida.
In addition to Trump’s own rhetoric, cryptocurrency enthusiasts are optimistic about the views of those around him. Many of Trump’s close associates have been strong proponents of digital currencies, according to the Financial Times.
Meanwhile, investor David Sacks is set to lead efforts in cryptocurrency and artificial intelligence in an advisory role within the Trump administration.
“David Sacks knows how to build and understands policy,” said Tyler Winklevoss, co-founder of the Gemini cryptocurrency exchange. “He was also an early advocate of cryptocurrency and supports Trump’s vision of making America pro-business, pro-innovation, and pro-crypto.”
Mike Novogratz, founder of Galaxy Digital, echoed this optimism, stating, “When everyone around the table loves our industry, you have to think that good things are coming.”
