Here’s What Users Can Expect When Donald Trump Begins Term As Cryptocurrency President: Bybit

It was just a few weeks ago that pro-crypto candidate Donald Trump won the US presidential election, and the digital asset market is still feeling the impact of that victory. As the Trump administration prepares to take full control of affairs in the White House in January, crypto users are anticipating what this could mean for the industry.

According to a quarterly institutional report from digital asset exchange Bybit and crypto research firm Blocks Scholes, market participants expect a transformative period in the industry, focusing on areas such as increased institutional interest, regulatory reforms and the rise in value of bitcoin (BTC) and altcoins.

Trump will bring regulatory clarity

Trump was once a crypto-skeptic, but eventually turned around and focused his 2024 campaign on championing BTC. The President of the United States has stated that he would create clear policy and regulatory frameworks for digital assets to ensure that the United States takes a leadership position in the crypto space.

Bybit and Blocks Scholes said Trump’s resurgence as America’s first crypto president could foster a more conducive environment for innovation. Trump wants to make the US the crypto capital of the planet, and his goals align with those of stakeholders in digital assets.

The crypto space will likely see significant regulatory changes with a Republican majority in both houses of the US Congress. The Bybit report revealed that targeted political spending by crypto entities during the election reshaped legislative priorities, especially in key Senate races.

As pro-crypto lawmakers take office, bills such as the Financial Technology and Innovation for the 21st Century Act (FIT21 Act), which aimed to provide regulatory certainty for digital assets, could be enacted. The bill faced legislative challenges as it moved through the chambers of Congress.

Favorable environment for Altcoins and DeFi

Additionally, Trump’s victory increases the potential for altcoins to gain traction even as BTC continues to dominate the market narrative. The incoming administration may spark renewed interest from investors in the decentralized finance (DeFi) sector and networks powered by smart contracts.

The Biden administration took an unfavorable stance towards DeFi and even took legal action against some decentralized entities. However, as regulatory clarity emerges, a Trump presidency could attract greater investment in these platforms.

Meanwhile, BTC has already gained over 47% since Trump won. With the cryptocurrency about 2% away from the $100,000 mark, traders are optimistic about a continued rally in the coming months.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!