Galaxy Research Director Alex Thorn highlighted in a report that the Trump administration may have the following impacts on cryptocurrency policy:
Banking Regulation: Appointing new acting leadership and swiftly issuing guidance to prohibit unfair treatment of specific industries (Chokepoint 2.0), allowing banks to custody digital assets and interact with blockchain and stablecoins.
Market Regulation: Trump will elevate current SEC and CFTC commissioners to acting chair positions, temporarily suspending some cryptocurrency enforcement and litigation, providing the industry and regulators an opportunity for discussion.
Congressional Legislation: Legislation on stablecoins is expected to advance, but if the Republican Party controls the House, it may be delayed until after 2025.
Energy Policy: The Trump administration may benefit the development of energy-intensive entities like Bitcoin mining companies.
The report concludes that a lenient enforcement environment and progressive policies will attract traditional financial institutions, driving the expansion and maturation of cryptocurrency assets, with the potential for significant price increases within the next 12-18 months.
