Following Donald Trump’s victory in the US presidential elections, the cryptocurrency community is buzzing with speculation about the fate of digital assets under his administration.

Industry experts and crypto influencers alike have been vocal about how a Trump victory might reshape regulatory policies and market trends for cryptocurrencies. This follows his recent popularity surge after the then-presidential aspirant made crypto the centerpiece of his campaign.  

Crypto Market Under Donald Trump’s Administration

Experts believe that Trump’s crypto-friendly policies could create an environment that is more welcoming to Bitcoin and other cryptocurrencies.  They say his administration may also position the US as a crypto-forward nation.

In a recent analysis on X (formerly Twitter), Alpha_Pls painted a vision of an administration under Trump. The crypto research expert says the Republican presidency could radically alter the industry’s playing field.

“BTC becomes a US strategic reserve asset,” he suggested.

The analyst also noted that such a move would signal to global markets that the US considers Bitcoin part of its economic arsenal. Alpha Please predicts that this would set a precedent for other nations and add unprecedented legitimacy to digital assets.

Another impact might be a complete overhaul of token classification, potentially shifting from the current regulatory stance. Such a change would allow tokens to flourish without the legal entanglements that currently hamper their development. This shift could help US crypto businesses gain a competitive edge in the global market.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Pahueg, a popular voice on social media platform X, agrees. He says that Trump’s return could result in a more favorable regulatory climate for decentralized finance (DeFi).

“DeFi will get better regulatory treatment — no more harassment and potentially even enabling things like fee switches or network-based dividends,” he stated.

The user also predicted that an Ethereum staking exchange-traded fund (ETF) could be on the table. This, in their opinion, would drive interest in Ethereum-based products while catalyzing similar offerings across other blockchain protocols. Further, it could also pave the way for a Solana ETF.

“The greatest Solana win coming from the new Trump Presidency will be our long-awaited ETF in 2025 or 2026. No surprise, the incredible VanEck team will lead the charge here with support from 21Shares and Canary Capital,” said Dan Jablonski, head of growth at news and research firm Syndica.

According to industry observers, a cornerstone of this new regulatory approach might involve more integration between banking and crypto sectors. In this regard, Alpha_Pls envisions banks being able to offer services and custody assets freely to crypto startups. Notably, this was previously restricted due to complex and prohibitive compliance measures.

This could lead to banks issuing their own stablecoins, marking a transformative moment for stablecoins. In turn, they could gain traction as bank-branded digital currencies. For US citizens, this could mean fewer barriers when engaging with crypto markets and broader access to crypto-based financial products.

US Pro-Crypto Shift Could Influence Global Markets

In addition to policy shifts in the US, Binance Research noted that Trump’s pro-business stance could influence global markets, with crypto experiencing increased price volatility amid regulatory uncertainties.

“Trump’s plans for deregulation, tax cuts, and increased government spending are expected to stimulate the economy,” Binance Research said.  

The research also highlighted the potential for Bitcoin and altcoins to reach new highs if Trump signals explicit support for cryptocurrencies. Trump’s previous interactions with the crypto sector, such as his foray into NFTs, add another layer to this outlook. His involvement with the NFT collections and the DeFi platform World Liberty Financial could indicate that a Trump administration would approach digital assets more pragmatically than past leadership.

Some speculate that this pragmatic view could lead to the US becoming a trendsetter for crypto policy. Such an outcome would embolden institutional investors further, especially those who previously hesitated due to regulatory uncertainty.

This potential shift is already reflected in rising stock futures and a rally in crypto markets, with Bitcoin achieving new all-time highs amid excitement about a Republican-dominated Washington. Trump’s tax reforms and pro-business agenda could spur investment in both traditional and crypto markets. Nevertheless, this could also lead to an increase in inflation, with higher treasury yields and a strengthened dollar.

Of note is that crypto’s reaction to Trump’s win is not isolated. Pahueg humorously noted that Dogecoin (DOGE) might even become the US official mascot. Tongue-in-cheek, this was about the cultural sway Elon Musk holds over both Trump supporters and the tech industry.

“Doge is the official mascot of the USA given Elon is becoming the White House‘s de facto CTO. Will have ramifications for memes,” Pahueg added.

This speculative mascot role for Dogecoin would symbolize the lighter side of a Trump crypto policy, embracing the meme culture.

Meanwhile, the crypto community remains watchful of the Federal Open Market Committee (FOMC) and international investors’ reaction to Trump’s win. As BeInCrypto reported, the Federal Reserve’s (Fed) interest rate decision later today is one of the US macro events driving Bitcoin sentiment this week. 

A dovish FOMC decision could lower interest rates, creating an accommodating environment for crypto, though with fewer cuts than previously expected.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency.

As Trump’s administration prepares to ascend the Oval Office, crypto investors should brace for potential shifts in both regulatory structures and market dynamics. Experts remain cautiously optimistic, as a new administration could open doors previously closed to the US crypto industry.

 “Less fear for entrepreneurs…should increase innovation,” Alpha_Pls concluded.