A Trump administration could be the turning point for crypto: expert

Trump’s recent interview with Elon Musk was expected to be one of the biggest cryptocurrency debates of 2024.

Given Trump’s recent outreach to the crypto space — from public support to campaign promises — hopes were high. Polymarket odds showed a 65% chance Trump would use the term “crypto” during the debate, reflecting the community’s optimism.

But the conversation proceeded without any mention of cryptocurrency, a surprising omission that echoed a similar silence during the first presidential debate in late June.

Trump’s silence is open to interpretation. Could it be a calculated effort to avoid controversy as the election approaches, or does it signal a shift in focus?

Against this backdrop, the former president’s ambitious promises have left the crypto community largely skeptical. While a few hope Trump’s rhetoric is a genuine signal of support, others, like former DC insider Moe Vela, advise caution, suggesting that Trump’s promises should be taken “with a pinch of salt.”

But Komodo CTO and project lead Kadan Stadlemann brings a different perspective to the table. He says Trump’s pro-crypto stance could have a profound impact on the industry on the regulatory front, potentially sparking the next bull run.

Stadlemann discussed the implications of a possible Trump presidency in an interview with crypto.news.

Do you think Trump’s support for cryptocurrencies is sincere?

Donald Trump’s relationship with cryptocurrencies is evolving. Before this election cycle, he expressed skepticism and even hostility toward Bitcoin (BTC) and other cryptocurrencies, calling them volatile and unregulated.

Political figures often adjust their positions based on emerging trends and voter interests, so Trump’s endorsement is likely aimed at appealing to a new demographic of younger, more tech-savvy voters.

It is important to consider that his support could also be influenced by advisors or business interests who see potential in the cryptocurrency market. Ultimately, whether his support is genuine or more strategic, it reflects his recognition of the growing importance of cryptocurrencies in the US economic and political landscape.

What changes in policies and regulations can the cryptocurrency industry expect under the Trump administration?

If Trump becomes the 47th US President, his administration’s approach to cryptocurrency regulation will likely focus on supporting rather than discouraging technology innovation, as the Biden administration has done. Trump’s business-friendly stance could lead to policies that support the growth of cryptocurrency industry jobs by encouraging investment and development within the United States. We can expect this to include lower regulatory barriers and clearer guidelines for cryptocurrency companies.

Given the industry’s propensity for scams and market manipulation, Trump’s policies could also emphasize implementing measures to prevent fraud and protect investors. It’s possible that Trump’s policies could aim to establish favorable tax practices for crypto businesses and encourage collaboration with international partners to create a coherent global regulatory framework.

The extent of these changes, however, will depend on the administration’s ability to navigate political opposition from Democrats and build consensus among lawmakers and regulators.

Trump claims that his Bitcoin accumulation strategy could help alleviate US debt in the near future; how sound is this logic?

The idea of ​​using Bitcoin to reduce debt assumes that the asset will increase in value over time. It also assumes that the U.S. government will reduce its deficit spending. The scale of the U.S. national debt, which recently passed $35 trillion, far exceeds Bitcoin’s current market value. Even if the government were to accumulate significant Bitcoin reserves, the impact on overall debt would likely be marginal unless Bitcoin’s value increased significantly.

While cryptocurrency investments can potentially contribute to diversification and long-term asset growth, effective debt management requires a multi-faceted approach that includes sound fiscal policies, economic growth, and responsible budgeting.

How do you think support for cryptocurrencies will impact the market in the near future and in the long term?

In the near future, Trump’s pro-crypto stance could lead to increased market optimism as investors anticipate a more favorable regulatory environment that encourages crypto adoption. This sentiment could lead to an increase in investment, boosting prices and market activity. However, the market’s response will also depend on a variety of factors, including broader macroeconomic conditions, technological advancements, and other government actions.

In the long run, if Trump’s policies succeed in creating a supportive ecosystem for cryptocurrencies, it could lead to wider acceptance and integration of digital assets into mainstream financial systems. As a result, we could also see a massive adoption of DeFi applications like DEXs. We’re also likely to see a large number of new institutional investors who may be more inclined to enter the space if they perceive a stable and supportive regulatory environment under Trump’s leadership.

Do you think Trump’s advocacy of cryptocurrencies could lead other presidential candidates or lawmakers to reconsider their stance on cryptocurrencies?

Trump’s support for cryptocurrencies could prompt other presidential candidates and lawmakers to reevaluate their positions, especially if his stance resonates with voters and garners significant support.

As cryptocurrencies continue to gain prominence in the financial sector, politicians may see the need to address the issue in order to remain relevant and appeal to a diverse constituency. This could encourage bipartisan efforts to create a comprehensive regulatory framework that supports crypto innovation. However, the extent of Trump’s influence will depend on a variety of factors, including the prevailing political climate and the stance of other influential political leaders.

Finally, could a Trump presidency spark the next bull run?

The Trump presidency is likely to kick-start the next bull run. To sustain a long-term bull run, a supportive regulatory environment under the Trump administration will need to be coupled with an increase in institutional adoption of blockchain technology and cryptocurrency.

A pro-crypto stance from the US could encourage other countries to adopt similar policies, creating a more favorable global environment for cryptocurrencies. This international alignment could reduce regulatory uncertainty, boosting market growth. However, it is important to understand that market dynamics are affected by a variety of factors, including macroeconomic conditions, geopolitical trends, and regulatory developments around the world.