The cryptocurrency sector is experiencing an outstanding return on investment following their substantial financial backing of Donald Trump’s 2024 presidential campaign. In the initial days of his presidency, Trump has implemented policies that have been highly beneficial to the crypto industry.
The crypto industry supported Trump due to his commitment to halt government crackdowns on digital currencies and establish favourable regulations for payment technology innovation, as well as easing investment restrictions in cryptocurrencies. Key figures in the industry, such as Coinbase’s CEO Brian Armstrong and Binance’s CEO Richard Teng, are optimistic about the new era.
“We really felt like we were under attack by the previous administration over the last four years,” Armstrong remarked at the World Economic Forum in Davos, Switzerland. He criticised the Biden administration for attempting to “weaponise the ambiguity in regulations,” penalising even constructive companies.
“There were some bad actors too, to be fair,” Armstrong acknowledged. “However, they even targeted the good actors, like us.” Coinbase was a major corporate donor during the 2024 election cycle.
Trump recently signed an executive order that aims to promote U.S. leadership in digital assets. The order includes initiatives such as establishing a working group to evaluate the potential creation of a digital asset stockpile from seized cryptocurrencies and protecting access to banking services for law-abiding entities.
Additionally, it terminates plans for a central bank digital currency and promotes the use of stablecoins pegged to the U.S. dollar.
The SEC also made a move by withdrawing a rule that had hindered institutional adoption of cryptocurrencies by requiring banks to treat them as liabilities. This change is expected to encourage more financial institutions to engage with digital assets.
Trump’s pro-crypto stance has led to a surge in cryptocurrency prices, with Bitcoin reaching new highs. However, concerns remain about the sustainability of these gains and the potential risks associated with Trump’s approach to cryptocurrency regulation.