What Crypto Regulations Could Look Like Under a 2025 Trump Presidency
Written by
Jordan Rosenfeld
Edited by
Rebekah Evans
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With a presidential election looming, cryptocurrency investors are keeping their eyes trained on what former President Donald Trump and current Vice President Kamala Harris might do with crypto regulations.
When Trump was president, he was not positive about crypto. On July 11, 2019, he tweeted, “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
Yet just recently, Trump told a Nashville cryptocurrency audience that he intends to turn the U.S. into “the crypto capital of the planet” if elected, according to ABC News.
Experts try to predict how a second Trump presidency would affect crypto regulations.
A More Lenient Regulatory Environment
Indeed, Trump appears to have completely shifted course, according to Ryan Waite, digital advocacy and politics expert and vice president of public affairs at Think Big.
“In recent months, Trump has shifted from a crypto skeptic to a vocal advocate, even branding himself as the ‘crypto president’ during his campaign,” Waite said.
He explained that Trump’s platform includes ambitious proposals such as establishing a U.S. bitcoin reserve, creating a crypto advisory council and appointing crypto-friendly regulators.
“Trump has criticized the Biden administration’s regulatory approach, pledging to reverse what he calls their ‘anti-crypto crusade’ and to stop what he describes as the ‘persecution’ of the industry,” Waite said.
Thus, should Trump win the presidency, Waite said he expects a more lenient regulatory environment that might favor innovation in the crypto space while reducing federal oversight.
Currently, crypto regulation is still in its infancy, though world governments are all considering what sort of regulations to put into place, particularly after recent bank collapses were shown to be at least partially tied to crypto activity. While two bills have been introduced in U.S. Congress — the Financial Innovation and Technology (FIT) for the 21st Century Act and the Blockchain Regulatory Certainty Act — they haven’t made any progress, according to World Economic Forum.
Waite added that while looser regulations might be good for innovation, “This shift also brings uncertainties, particularly around how these policies might interact with existing financial regulations and the broader global banking and crypto market.”
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A Push For the US To Be a Crypto Leader
According to Blake Morgan, managing partner of Mineral Vault, a crypto tokenization company, if Trump were to win the presidency, it’s likely he will not just be friendly to the crypto industry, but (according to statements he’s made) push for the U.S. to be “a leader in crypto.” He pointed out that Trump has proposed required support and easier regulations for the crypto industry.
“[Trump] criticized and highlighted the strict approaches of the current administration. Thus, he vowed to replace key regulatory figures like SEC Chair Gary Gensler after getting into power.”
Overall, Morgan expects Trump’s potential presidency could lead to more industry-friendly policies. “He is expected to create a national bitcoin strategy that will clearly oppose the central bank’s digital currencies.”
JD Vance May Be the Driver
Morgan said that many analysts believe that the crypto policies suggested by Donald Trump may actually be directed by his running mate, JD Vance, who is vocally pro-crypto and also invested in cryptocurrencies.
“All in all, Trump’s recent actions indicate the acceptance of bitcoin donations and promotion of NFTs, making him a big supporter of cryptocurrencies.”
The Industry’s Political Support Is Divided
Though the crypto industry may seem to also be tilting toward Trump in its support, one leading pro-crypto political action committee (PAC), Fairshake PAC and its affiliated super PACs, have actually pledged millions to back Democratic Senate candidates in critical races in Michigan and Arizona, as reported by NBC News. This begs the question of whether the crypto industry as a whole really believes Trump has their best interests at heart.
For the most part, Harris has not yet outlined a strategy for crypto regulation, so people are running on the assumption that she will take a similar approach as President Joe Biden, who has been pro-regulation of the industry.
For now, cryptocurrency proponents will have to wait with bated breath to see how the election goes in November.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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