• Donald Trump has courted Bitcoin lovers by branding himself the “cryptocurrency president.”
• The industry hopes his second term will bring regulatory changes and give Bitcoin a role in the economy.
• Standard Chartered said Trump’s policies could inflate the market value of an entire asset class.

Donald Trump flipped bitcoin cynical “crypto head” and the reward was great.

Embers underrated digital assets Just a few years ago he described Bitcoin as a scam, and yet his recent election victory was driven by crypto-friendly promises that unlocked millions in campaign funds.

With Trump back in the White House, it’s now the industry’s turn to see if his bets on a second term pay off. Here’s what they want to see.

Legislative revision

A key theme of Trump’s crypto platform is his promise to jettison the regulatory restrictions that have hung over the industry in recent years.

Criticism of the Biden administration’s handling of the industry has been high, characterized by heated clashes between the Securities and Exchange Commission and major crypto players.

“These guys, I mean, they put so much uncertainty into the entire industry. It was incredible. There was no clear guidance or regulation,” said Tim Kravchunovsky, CEO of Chirp, a decentralized telecommunications company.

Speaking to Business Insider, he added that regulatory disputes are pushing the crypto business out of the US and costing Washington its competitive advantage.

Matt Mena, crypto research strategist at 21Shares, agrees.

“By creating a more welcoming regulatory environment, this approach could attract projects and founders leaving the country due to regulatory uncertainty, create thousands of new jobs and millions in tax revenue, strengthen the economy while developing the crypto sector.” BI via email.

To that end, the industry predicts Trump will replace regulatory heads with more crypto-friendly people. Mena said the president-elect is already surrounded by names like Elon Musk, JD Vance, Robert F. Kennedy and Howard Lutnick.

Meanwhile, Kravchunovsky suggested that Washington could provide incentives such as federal grants and tax cuts to enable Trump’s plan to turn the US into a “crypto hub.”

crypto bills

On the legislative front, crypto players will also be watching for the repeal of SAB 121 and the passage of several key bills.

SAB 121, an SEC policy document Kept in place by Biden administrationIt discourages US lenders from acting as crypto custodians, as it requires them to hold an equivalent amount of cash against crypto assets. Its removal will drive greater adoption of digital assets by institutional investors.

Mena also touched on expectations around FIT21, a law aimed at clarifying regulatory roles around digital assets. He said consumer protection will also be strengthened under this bill.

Meanwhile, the Trump administration may accelerate progress on three significant pieces of stablecoin legislation aimed at establishing barriers against future stablecoin issuance. These dollar-pegged crypto assets are increasingly being used for purposes similar to traditional finance, Standard Chartered said in a note on Friday.

Bitcoin reserve?

Since Trump’s victory, speculation has increased that a strategic Bitcoin reserve may be on the way.

Although the president-elect has not specifically voiced such a plan, the idea that his administration would purchase Bitcoin as a reserve asset has created excitement among crypto bulls.

“We are already seeing that it (cryptos) is gaining trust, gaining trust with institutions and countries. More and more countries are adopting it. So I don’t think it’s a matter of a few years. I think it’s a matter of a few months,” Kravchunovsky said.

Mena predicts that if a strategic reserve is created, the price of Bitcoin will rise to $1 million “almost overnight.” The scenario would encourage other nations to build their own reserves, pushing Bitcoin’s total market value 13 times higher.

Meanwhile, Geoff Kendrick, head of research at Standard Chartered FX, thinks a Bitcoin reserve fund is a high-impact development that is unlikely to happen for now.

Investors should instead pay attention to Trump’s separate promise to halt all government sales of bitcoin. If this happens, he wrote, it could mean a huge increase in the token price.

It’s crypto’s time to shine

No matter how the industry changes under Trump, one thing is certain: the election has cemented the crypto market’s place in the mainstream.

“Crypto is now legal in the US, which is a major milestone for the industry,” Mena wrote.

According to Kendrick, crypto-friendly adjustments have the potential to increase the total market value of the cryptocurrency market to $10 trillion by the end of 2026; This is a huge jump from the current level of $2.5 trillion.

He reiterated his expectation that Bitcoin will reach $200,000 by the end of next year.