With Donald Trump returning to the US presidency in 2025, the regulatory landscape for cryptocurrencies in the country could undergo a radical change.
January 20, 2025 marks the beginning of a new presidential term for Trump, a period that promises to transform the United States' relationship with the crypto world, especially with regard to its regulatory agencies, such as the Securities and Exchange Commission (SEC).
During his campaign, Trump took a more favorable stance towards financial innovation and criticized the current regulation towards digital assets, which has stifled this innovation and technological development. Since his election victory, he has been forming a cabinet composed of several pro-crypto leaders, which has generated high expectations in the crypto industry.
With these promises and appointments, experts anticipate a 2025 marked by a possible paradigm shift in cryptocurrency regulation.
The end of Gary Gesnler's regulatory legacy at the SEC
Under Gary Gensler's leadership, the SEC has taken a tough and restrictive stance toward cryptocurrencies, labeling numerous digital assets as securities and filing lawsuits against major exchanges and companies, including Ripple, Binance, Uniswap Labs, and Opensea, among others. This strategy has drawn criticism from both crypto industry leaders and a growing number of lawmakers, who argue that the lack of regulatory clarity is hindering innovation in the United States. Meanwhile, other jurisdictions, such as the European Union with its MiCA framework, move towards the creation of clearer, more transparent and more favorable regulations for the sector.
Gensler has taken a stance that has been perceived as overly aggressive by some quarters, who believe that this rigidity has only created a hostile environment for innovation. Despite justifying his efforts with the need to protect investors, many in the crypto community felt that the measures taken have not only been confusing, but have also been limiting the growth of the crypto market.
The Ripple case is emblematic of the SEC's situation with cryptocurrencies. After a long legal battle, a judge ruled that XRP is not a security In most cases, this represented a significant victory for the industry. However, the SEC has continued its aggressive approach, generating uncertainty and distrust among investors and developers.
Trump and his favorable vision towards cryptocurrencies
During his campaign, Donald Trump distanced himself from the SEC’s stance, arguing that excessive regulation is stifling innovation and jeopardizing the United States’ position as a leader in the technology sector. Unlike the outgoing administration, Trump has expressed support for the adoption of emerging technologies such as blockchain, cryptocurrencies and artificial intelligence, provided that effective safeguards against fraud and money laundering are implemented.
With his administration taking office on January 20, significant changes are anticipated in the regulation of crypto assets in the country. Trump has made a strategic move by proposing a New Chairman for the SEC, one that is more crypto-friendly and seeks to establish a clear and predictable regulatory framework. He has also mentioned the possibility of creating a national strategic reserve in Bitcoin, which could accelerate the integration of cryptocurrencies into the traditional financial system.
Possible scenarios under Trump
Trump’s vision to turn the United States into “the crypto capital of the world” has resonated with investors, who have seen the price of Bitcoin rise since his election victory. This promise not only reflects a shift in the political narrative, but also an opportunity to revitalize the American crypto ecosystem.
One of the most debated aspects is the classification of cryptocurrencies as securities. Currently, the SEC considers many digital assets as such, which implies strict oversight. However, Trump and his team are evaluating the possibility of transfer cryptocurrency regulation to the Commodity Futures Trading Commission (CFTC)This relocation could redefine the regulatory framework, allowing cryptocurrencies to be treated as commodities rather than securities, which would open the door to a more flexible and less punitive approach.
Furthermore, the Trump administration is expected to work with Congress to establish clear laws defining the legal status of cryptocurrencies and exchanges. This move could attract investment and revitalize the crypto ecosystem in the United States, while emphasizing consumer protection through anti-fraud regulations.
Given the above, Donald Trump's return to the presidency in 2025 could mark a turning point in the relationship between the SEC and cryptocurrencies.
If his administration can balance innovation with consumer protection, the United States could regain its position as a leader in the sector. However, the road will not be without challenges, and the industry will need to remain vigilant for future regulatory moves.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
