The cryptocurrency industry, which poured millions into the 2024 U.S. elections, is optimistic about gaining favorable policies under the incoming administration of President Donald Trump. Industry advocates hope for a shift from what they viewed as hostile oversight during President Joe Biden’s tenure, marked by numerous enforcement actions by the Securities and Exchange Commission (SEC).
Crypto-aligned groups, including the influential Fairshake PAC, played an active role in supporting pro-crypto candidates. Their efforts, industry insiders claim, left a notable impression on policymakers. “The stunning impact of groups like Fairshake PAC did not escape legislators’ notice,” said Zack Shapiro of the Bitcoin Policy Institute.
Among the industry’s top priorities are clearer regulations for digital assets, the establishment of a U.S.-backed strategic Bitcoin reserve, and legislation governing stablecoins, cryptocurrencies tied to traditional assets. These measures are aimed at reducing regulatory uncertainty and cementing America’s position as a leader in financial innovation.
Trump’s team has signaled a friendlier stance toward the sector. Days before the inauguration, Brian Hughes, a spokesman for the transition team, stated, “President Trump will deliver on his promise to encourage American leadership in crypto and other emerging technologies.” Reports also suggest Trump plans to establish a crypto advisory council via executive order.
A key issue for the industry is defining whether cryptocurrencies are commodities, regulated by the Commodity Futures Trading Commission (CFTC), or securities, falling under the SEC’s stricter rules. Advocates argue that such clarity is essential to fostering innovation while maintaining investor protections.
Senator Cynthia Lummis, a staunch crypto supporter, is championing a bill to create a strategic Bitcoin reserve, a move she claims would solidify the U.S.’s leadership in the sector. “Bitcoin is transforming not only our country but the world,” Lummis said, highlighting its potential to strengthen U.S. finances.
Despite optimism, concerns remain about the risks of lax regulations. Consumer advocate Ira Rheingold of the National Association of Consumer Advocates warned, “A more laissez-faire environment could open the door for scammers to flourish.” He argued that robust regulation is necessary to protect consumers and legitimise the industry.
As the Trump administration takes shape, the debate over how to regulate the burgeoning crypto industry will likely intensify. Advocates like Alex Gladstein of the Human Rights Foundation emphasise the stakes: “America in 2028 can either be a better place for Bitcoin and its businesses or one marked by censorship and financial exclusion.”
Whether the crypto sector’s significant investment in political campaigns translates into favorable policies remains to be seen. For now, both optimism and caution define the industry’s outlook.
