As US President-elect Donald Trump prepares to take office, his transformation from a crypto sceptic to a staunch advocate for digital assets has captivated the world and fuelled a surge in cryptocurrency markets.
With just days remaining before his inauguration, Donald Trump has declared his intent to make the United States the “crypto capital of the planet” and a “Bitcoin superpower.” Once a critic of digital currencies, Trump has fully embraced the sector, calling it “critical to the future of American competitiveness.”
The shift has prompted a flurry of activity among cryptocurrency executives, who are vying for influence in Trump’s administration and a place on the planned crypto advisory council. Industry insiders report that the council, expected to be unveiled shortly after the January 20 inauguration, will likely comprise two dozen key figures from the crypto world, many of whom already have ties to Trump.
Crypto Titans Rally Behind Trump
Circle CEO Jeremy Allaire revealed on January 9 that his stablecoin company contributed $1 million worth of tokens to Trump’s inaugural committee. Similar contributions have poured in from major players, including Ripple, which pledged $5 million worth of XRP tokens, and Coinbase, Kraken, and Ondo, each committing $1 million.
Mar-a-Lago, Trump’s Florida estate, has become a hub for crypto discussions. Crypto.com CEO Kris Marszalek, Ripple executives Brad Garlinghouse and Stu Alderoty, and Coinbase CEO Brian Armstrong have all met with Trump in recent weeks to discuss industry regulations and appointments.
The crypto industry is also hosting a high-profile event, the “Inaugural Crypto Ball,” in Washington on January 17. The event, organised by BTC and Coinbase-supported advocacy group Stand With Crypto, will feature leaders like Anchorage Digital and Exodus.
From Critic to Champion
Trump’s stance on crypto has undergone a radical transformation. Once dismissing Bitcoin as a “scam,” Trump now champions the digital asset. At the Bitcoin 2024 conference in July, he lauded Bitcoin as a symbol of “freedom, sovereignty, and independence from government control.”
This newfound support has buoyed the industry. Bitcoin’s price soared to a record $108,000 in December 2024, driven by expectations of a pro-crypto regulatory environment under Trump’s leadership.
Regulatory Shifts and Strategic Plans
Trump has pledged to overhaul the regulatory landscape for digital assets, starting with the dismissal of SEC Chair Gary Gensler, who has been a staunch enforcer of crypto regulations. Trump plans to replace Gensler with crypto supporter Paul Atkins, a move that has already boosted Bitcoin’s market confidence.
Additionally, Trump has proposed a “strategic Bitcoin stockpile,” where the US government would retain and potentially expand its Bitcoin holdings. However, his vision of mining all Bitcoin domestically faces logistical challenges.
Crypto’s Wish List
The industry seeks clearer legal frameworks and a lighter regulatory touch. Many hope for expanded approval of crypto ETFs and a shift in the classification of digital assets from securities to commodities. Such changes would place oversight under the Commodity Futures Trading Commission (CFTC) rather than the SEC, potentially reducing regulatory burdens.
Senator Cynthia Lummis has even drafted legislation to fund Bitcoin purchases by selling federal gold reserves. However, predictions suggest only a 30% chance of such a reserve materialising in Trump’s first 100 days.
A Bold New Era
Trump’s pivot to crypto marks a turning point in US digital finance policy. As he takes office, the crypto industry is poised to gain unprecedented influence, setting the stage for a transformative era in global finance.