Key Insights:

• Donald Trump emerged as the new president of the United States after Joe Biden.
• Trump, who is seen mainly as pro-crypto, is predicted to be good for the sector.
• Analysts expect the crypto industry to thrive over the next four years, considering his many promises.
• All of the above, however, depends on how well Donald Trump keeps his promises.

In a surprising turn of events, Donald Trump has won a second term as President of the United States.

This makes him the 47th president of the United States and both Joe Biden’s predecessor and successor. Trump, known for his unorthodox policy approach, has been making waves in the crypto space.

Throughout his campaign, he has promised massive shifts for the industry as a whole:

From promising to make America the “crypto capital of the planet” to launching his own crypto venture, World Liberty Financial.

Interestingly, the incoming president’s stance on digital assets has changed completely in a matter of years.

Donald Trump, who used to be a major crypto critic, is now likely the most influential crypto supporter in the United States.

Here’s what his victory in the 5 November elections might mean for crypto in terms of regulation, innovation, and its future in general.

US Election 2024: A Shift from Skeptic to Crypto Advocate

Just three years ago, Trump dismissed Bitcoin as a “scam.”

He raised concerns about the cryptocurrency being a possible threat to the U.S. dollar.

Fast forward to 2024, and Trump has embraced the industry with open arms, campaigning on a pro-crypto platform and promising to make Bitcoin a national reserve asset—similar to gold reserves.

This dramatic change in stance has captured the attention of crypto enthusiasts, especially given the harsh environment the Biden administration created for the industry.

Crypto faced intense regulatory scrutiny under Biden. In the last four years, some of the harshest events have occurred, including the implosions of Terra and FTX.

Notable crypto figures like Changpeng Zhao (the then CEO of Binance) even went to prison—right after Binance paid billions in fines.

The SEC under Biden, led by Gary Gensler, pushed for tighter regulation on crypto to protect consumers and reduce the risks associated with this new, emerging technology.

However, Trump has promised to protect consumers and take a more hands-off approach.

He has pledged to focus more on supporting the industry’s growth within the U.S. borders.

Trump’s Promises to the Crypto Industry

Throughout his campaign, Trump laid out massive plans for the crypto industry.

Some of his key promises include: 

1. Creating a National Bitcoin Reserve

Trump supported the idea of establishing a strategic Bitcoin stockpile to position the U.S. as a leader in digital assets. He expects this stockpile to play a major role in clearing the country’s national debt.

2. Supporting U.S.-based Crypto Mining

He also vowed to back domestic mining operations. By so doing, Trump aims to bring more blockchain infrastructure to the U.S. and reduce the country’s reliance on foreign entities.

3. Opposing a Central Bank Digital Currency

Unlike some other world leaders, Trump has openly criticized CBDCs. He maintains that these central bank-issued cryptocurrencies could undermine the financial freedom of American citizens.

4. Promoting Self-Custody Rights

Trump has called for individual control over digital assets. This, alone, aligns with crypto’s original ethos of decentralization and self-sovereignty.

All of these promises and more have resonated with crypto supporters, in and out of the United States.

Keep in mind that most of these crypto community members have felt alienated by the previous administration’s stance. 

Trump’s vocal support of the sector earned him support from industry leaders like former Messari CEO Ryan Selkis, Gemini co-founders Tyler and Cameron Winklevoss, and Tesla CEO Elon Musk.

World Liberty Financial

In the lead-up to his election victory, Trump launched World Liberty Financial.

This project, stylized WLF, is expected to be a crypto-centric business, but not enough details have been disclosed yet.

However, speculators know that it aims to expand Trump’s footprint in the digital asset sector. 

The venture shows that Trump believes “crypto is one of those things we have to do.” 

This comes amid reports that the SEC under Biden carried out 46 enforcement actions by the SEC in 2023 alone.

According to the Blockchain Association, the agency sued over 100 crypto companies and entities between 2021 and 2024.

A Key Election Issue for the Crypto Community

Trump’s pro-crypto advocacy has made the industry more active in politics, considering how it donated a record-breaking $119 million during the 2024 election cycle. 

Advocacy groups like Public Citizen have noted that this funding was targeted at pro-crypto candidates regardless of their party affiliation.

According to Paul Grewal of Coinbase in a BBC interview, the U.S. is a major crypto market.

This is considering how it is responsible for most of the technology surrounding digital assets.

Grewal warned that other countries might take the baton and lead the sector if the U.S. doesn’t create a more crypto-friendly environment.

The Road Ahead for U.S. Cryptocurrency Policy

As Trump prepares to take office, his next actions could shape the future of crypto within the U.S.

His promises to deregulate and support the sector might pave the way for more innovation.

New projects with better use cases will spring up all over the U.S., and innovators who left the country due to its harsh regulatory environment will start to return.

If Trump keeps his promises, crypto is headed for a new dawn.

Investors should realize, however, that reducing the harshness of crypto regulation in the U.S. is bound to raise consumer protection challenges.

Trump’s victory has undoubtedly raised hopes within the industry.

However, only time will tell whether he will fulfill his promises and how his policies will impact crypto’s future on a global scale.