With roaring applause, crypto enthusiasts welcomed Eric Trump at the Bitcoin Mena Conference in Abu Dhabi. The son of the newly elected U.S. President promised nothing less than a golden era for the crypto economy. "My father will be the most crypto-friendly President America has ever had," he declared to cheering listeners. And indeed: Donald Trump's plans could take the industry to a completely new level – with potentially enormous consequences.
From Low Point to Soaring Heights: The Crypto Renaissance
Just two years ago, the cryptocurrency industry was considered severely battered. The spectacular bankruptcy of FTX caused Bitcoin to plummet to 16,000 dollars, and many investors retreated. But Trump's election in November 2024 changed everything. Just a month later, Bitcoin broke the 100,000-dollar mark for the first time – accompanied by yellow-painted Lamborghinis in Dubai, with "BTC 100K THANKS TRUMP" emblazoned on their hoods.
Didi Steiner, a 26-year-old Austrian, put it succinctly: "With Trump, we are getting many steps closer to the vision of Bitcoin as a global reserve asset." And this vision could become reality. Trump plans to establish a national Bitcoin reserve, which would further integrate the asset into traditional financial markets.
The Trump Effect: Relaxations and New Laws
With a Republican-controlled Congress behind him, Trump plans drastic changes. His nominations for key positions in financial regulation speak volumes: Paul Atkins, an avowed crypto advocate, is to lead the SEC. Howard Lutnick, CEO of Cantor Fitzgerald and closely linked to Tether, will become Secretary of Commerce. Scott Bessent, a longtime supporter of digital assets, will take over the Treasury.
Trump himself has ambitious plans: less regulation, more innovation.
An industry on the rise – but on shaky ground?
Critics view Trump's plans with mixed feelings. The path to greater legitimacy and less control could entail both opportunities and massive risks. Eswar Prasad from the Brookings Institute warns of possible consequences: "The broad acceptance of crypto could destabilize traditional financial systems." Especially stablecoins, whose value is often backed by US government bonds, could trigger massive shockwaves in the event of a sudden price drop.
Added to this is the paradoxical development: An industry that once set out to circumvent government interference is now doing everything it can to be accepted by Washington and Wall Street. "That is an irony that is hard to beat," comments Yesha Yadav from Vanderbilt University.
Lobbying at the Highest Level: How Crypto Won Over Politics
The current developments are no coincidence. Big names like Coinbase, Ripple, and Andreessen Horowitz invested hundreds of millions of dollars in lobbying. The Coinbase-backed Super-PAC "Stand With Crypto" managed to bring 294 crypto-friendly politicians into Congress – a remarkable shift in power.
The Strategy: targeted attacks on anti-crypto politicians and massive campaigns for issues like border security that appealed to voters without directly mentioning cryptocurrencies. With success: Trump himself was generously supported by crypto billionaires, including the Winklevoss twins and Jesse Powell, co-founder of Kraken.
The Great Risk: Will the Euphoria Become the Next Crisis?
The enthusiasm for Trump's crypto-friendly stance has boosted the industry, but experts warn of the dangers. The integration of crypto into traditional markets could hit more investors in the next downturn – from retail investors to pension funds.
Hilary Allen from American University compares the situation to the subprime crisis of 2008: "The mortgages back then were at least backed by real values. With crypto, we're talking about assets created out of nothing.
The world will be watching closely as Trump puts his plans into action. For one thing, this election has already proven: The crypto world has found its place in the power center of the USA – and it is ready to defend it.
