Trump's plans to create a US-based digital coin reserve and appointment of crypto advocates suggest a major policy shift from previous restrictions.
XRP and Solana emerge as potential beneficiaries, with XRP surging 400% post-election and trading at $3.35 amid strategic reserve discussions.
Industry leaders anticipate "crypto startup renaissance" as the Trump administration plans to reverse restrictive measures and foster innovation growth.
The cryptocurrency industry is embracing a wave of optimism as Donald Trump prepares to take office. Among his promises to the crypto community is the creation of a crypto strategic reserve, which has sparked debates about establishing an America-first strategic reserve focused on US-based digital coins, such as Solana, USD Coin, and Ripple. Ripple’s XRP experienced a massive surge following Trump’s victory in the last election, increasing by over 400%.
The New York Post reported that Trump has met with the founders of these digital assets and is reportedly open to the idea. However, concerns remain that focusing on these coins could undermine efforts to promote Bitcoin. Nevertheless, many believe such concerns are outweighed by the potential for a crypto golden age.
Trump’s embrace of crypto could mark a new chapter in the perception of digital assets, while creating more opportunities for innovation within the industry. The focus is expected to shift toward establishing a supportive regulatory framework that fosters innovation in the United States. Additionally, if a US-based coin is adopted as part of the strategic reserve, it could significantly boost the prices of these coins.
Industry Leaders Anticipate Surge in Startups and Innovation
Under Biden, the crypto community faced strict regulations that many saw as unfair. Initiatives such as “Operation Chokepoint 2.0” were implemented to stop banks from working with crypto companies, making it harder for startups to grow and innovate. Venture capitalist Marc Andreessen labeled the administration’s actions “terrorizing” for startups. This situation led many crypto startups to move overseas or not launch at all.
Trump’s administration is expected to reverse these measures, with plans to foster innovation and support the growth of the industry. He has always been vocal about his love for cryptocurrency, both before and after the election. He has also made key appointments, such as David Sacks as the AI and crypto czar and Paul Atkins as the nominee for SEC Chair, signaling a pro-crypto stance.
Industry leaders are already feeling the impact. Frank Chaparro, an early Bitcoin investor, noted that America is back in business for crypto founders. The potential for banks to engage with crypto businesses without regulatory fear is expected to lead to a surge in startups returning to the US Nic Carter, a prominent crypto investor, predicts a “crypto startup renaissance,” with many companies planning expansions or comebacks in the US.
The New York Post reports that Sacks will host the first-ever Crypto Ball in Washington ahead of Trump’s inauguration. The event is sponsored by major industry players such as Coinbase, Kraken, Galaxy Digital, and MicroStrategy, further showing the renewed energy within the community. The CEO of Professional Capital Management believes the Trump administration will soon adjust regulations and accounting rules to make Bitcoin transactions easier.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.