The newly elected president, Trump, who once questioned the value of Cryptos, has changed his stance during the campaign and become a supporter of them. With many factors anticipated in the future, such as a regulatory easing environment, $Bitcoin (BTC.CC)$ last December, it broke the new high of 0.1 million dollars, and the market is closely watching Trump's role and future impact on the development of Cryptos.

President Donald Trump once held a skeptical attitude towards Digital Assets, calling Bitcoin "seems like a scam," and the value of Cryptos "is built on thin air."

However, in his recent presidential campaign, Trump has turned into a cheerleader for Cryptos: a speech in July at the Bitcoin 2024 conference made his complete transformation possible. Since his re-election, due to market expectations that the incoming Trump administration will implement a supportive agenda for Cryptos, the prices of Cryptos have soared, especially Bitcoin setting a historical high of over 0.108 million dollars last December.

Trump promised to become the "president who supports Bitcoin." In a speech last July in Nashville, he praised this largest Market Cap Crypto, stating that "Bitcoin represents freedom, sovereignty, and independence from government, coercion, and control." He said he wanted to make the USA "the capital of Cryptos on Earth and the Bitcoin superpower in the world." Last December, he published an article on Truth Social, the Social Media platform under Trump Media & Technology Group, claiming that Cryptos "are crucial for the future of America's competitiveness."

Trump's embrace of the industry has helped him gain the support of well-known Crypto supporters, such as venture capitalists Marc Andreessen and Ben Horowitz, as well as billionaire twins Tyler and Cameron Winklevoss.

Often associated with meme coin speculation, Elon Musk talked about Cryptos on Saturday Night Live. He donated 0.2385 billion USD to the pro-Trump super political action committee America PAC. Anderson and Horowitz donated 2.5 million USD to the pro-Trump American right-wing super political action committee. The crypto industry also spent 0.135 billion USD, mainly through Fairshake PAC, to support candidates in the November elections, most of whom won their campaigns.

What crypto projects did Trump personally get involved in?

Trump and some of his family members are founders and beneficiaries of a crypto project called 'World Freedom Financial' that has its own token WLFI. As of the end of October, over 0.016 million people held the World Freedom Financial token, and just weeks ago, this project supported by Trump and his sons began selling Cryptos on its platform to accredited investors.

Last November, crypto entrepreneur Justin Sun announced he would invest 30 million USD in the WLFI token, with the Trump family expected to receive at least 15 million USD. Trump has also ventured into other Digital Currency assets. He has released four series of non-fungible tokens, which feature heroic images of him in various Outfits and scenes. He called the latest NFT series digital trading cards, selling at 99 USD each in the primary market in August.

Why did the price of Cryptos skyrocket?

Last year, from the election to mid-December, the price of the largest Market Cap token Bitcoin increased by over 50%, and other Cryptos skyrocketed as well, mainly because people believed that Trump and the incoming Republican government would create a friendlier regulatory environment. Investors in the crypto industry stated that this would likely lead to more individuals and Institutions investing in the field while also reducing the risk of enforcement actions from the USA Securities and Exchange Commission (SEC).

Trump also hired crypto advocates for key roles. For example, Musk and Vivek Ramaswamy will lead an advisory group called the Department of Government Efficiency (DOGE). DOGE is named after Dogecoin and Musk is often associated with Dogecoin.

The demand for Bitcoin ETFs has also helped boost the price of Cryptos. As of January 8, Bitcoin ETFs in the USA invested 110 billion USD, just a year after their debut.

What has Trump supported in the crypto space?

Trump promised to fire Gary Gensler, the Chairman of the US Securities and Exchange Commission, on his first day in office; Gensler announced his resignation before Trump took office, preemptively thwarting this attempt.

During Gensler's tenure, the SEC filed lawsuits against $Coinbase (COIN.US)$and cryptocurrency companies like Binance Holdings Ltd., accusing them of selling what the regulatory agency claims were unregistered securities.

Trump nominated cryptocurrency supporter Paul Atkins to replace Gensler, which helped Bitcoin break through $100,000 for the first time. He also nominated David Sacks for the newly established position of AI and Crypto Czar. Trump also created a crypto advisory group composed of supporters from the industry. In a Truth Social post in December, Trump stated that Bo Hines will serve as the Executive Director of the Presidential Advisory Council on Digital Assets, reporting to Sacks.

Trump stated that he plans for the US government to retain rather than sell Bitcoin assets seized by law enforcement, which would form the basis of a strategic Bitcoin reserve. Trump also expressed his desire for all Bitcoin to be mined in the USA, although this commitment may be difficult to achieve due to the decentralized nature of the network and cheaper energy costs in other parts of the world.

What is the regulatory environment like?

The SEC, under Gensler's leadership, clearly stated that it believes most digital assets are securities, a definition that brings a wide range of requirements. The top bank regulatory agency in the USA issued a comprehensive statement regarding the dangers of cryptos in early 2023. In November 2022, the collapse of the crypto Exchange FTX left global customers facing potential losses of billions of dollars.

The legislation proposed in 2022 to strengthen the USA's regulation of cryptos is stalled in the Senate Banking Committee, facing an uncertain future. The bill would give the Commodity Futures Trading Commission (CFTC) additional powers to regulate digital currencies considered as commodities, which could allow the regulatory body to directly supervise Bitcoin and the second largest token by Market Cap, Ethereum. Currently, the agency's jurisdiction is mainly limited to crypto derivatives. According to the bill, the SEC will regulate the digital currencies used for raising funds from the public, providing oversight similar to its regulation of stock issuance.

What does the crypto industry want from Trump?

Many within the industry hope for a more laissez-faire regulatory approach and the approval of more crypto ETFs. The crypto industry is also looking for specific legal language defining what crypto is exactly and how the industry should operate legally, which may reduce concerns about lawsuits against government institutions.

Supporters would also be pleased with classifying crypto assets as commodities rather than securities, as classifying them as securities would fall under the CFTC's jurisdiction. Many in the crypto industry believe that the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency forced Banks to limit access to their services for the industry, and they hope to see Trump reverse this stance.

Some in the crypto industry also hope to see Trump not only implement his plan for a strategic Bitcoin reserve in the USA but also want the government to purchase more tokens as reserves.

USA Senator Cynthia Lummis drafted a bill requiring the Federal Reserve to sell part of its Gold certificates to fund the purchase of Gold. According to betting outcomes on the prediction platform Polymarket, which is popular among crypto enthusiasts, the current bet on the likelihood of Trump establishing reserves within 100 days of taking office is only about 30%.

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