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1 Bitcoin = $400? Check out the actions Trump promises to take that could boost Cryptocurrency in 2025

Published 18/01/2025 às 10:49
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Trump’s promises for 2025 include measures that could have a significant impact on the cryptocurrency market. Find out how this could influence the value of Bitcoin.

Donald Trump, the president-elect of the United States, is planning to use his executive powers to boost the cryptocurrency industry, and Bitcoin, marking a turning point in political regulatory framework of the country.

According to Reuters, sources close to the transition office say Trump intends to issue an executive order in the first days of his term, creating a Cryptocurrency Advisory Board.

This action aims to attract investments in the sector and remove regulatory barriers that, according to its advisors, hinder the growth of companies linked to digital assets.

During his campaign, Trump took a friendly stance towards cryptocurrencies, promising to be a “pro-crypto president".

According to sources who requested anonymity, the advisory board, which could have up to 20 members, will be responsible for guiding the government in formulating more flexible policies adapted to the sector's demands.

In addition to the council, another proposal under consideration involves repealing a Securities and Exchange Commission (SEC) accounting guideline known as “SAT 121".

This rule, implemented in 2022, increased the operating costs of companies that offer custody services for cryptocurrencies, mainly banks.

If the executive order is approved, the banking sector will be able to operate more competitively and in line with the new demands of the digital financial market.

Regulators in the crosshairs

Trump should also focus on discontinuing the so-called “Operation Choke Point 2.0”, an alleged effort by banking regulators to limit cryptocurrency companies’ access to the traditional financial system.

Industry executives allege that banks have been pressured to deny services to digital asset companies.

Regulators, however, deny any coordinated initiative in this regard. Even so, the measure is seen as a clear nod from the Trump administration to ensure the inclusion of cryptocurrencies in the mainstream market.

Experts believe that if these changes are implemented, they could take the cryptocurrency market to a new level of acceptance and stability.

However, critics point out that deregulation could open the door to fraud, money laundering and high-risk financial practices.

Trump's stance is in contrast to the Joe Biden administration, which has taken a hardline approach to cryptocurrencies.

Under Biden, regulators including the SEC have stepped up lawsuits against major exchanges including Binance, Coinbase and Kraken. Their operations have come under scrutiny for alleged violations of security and anti-money laundering rules.

Controversies in the crypto industry

The cryptocurrency industry has faced major scandals before. Among the most notable cases are the conviction of Sam Bankman-Fried, former CEO of FTX, who received a 25-year sentence for fraud, and the arrest of Changpeng Zhao, founder of Binance, who was accused of engaging in illegal activities. These episodes reinforce concerns about the risks associated with the lack of adequate regulation in the sector.

Trump, however, appears willing to bet on the economic potential of cryptocurrencies, despite the criticism. His economic team, made up of several crypto market advocates, believes that deregulation can attract new investment and generate jobs in the technology sector.

Bullish Market Outlook for Bitcoin

The promise of a more favorable regulatory environment is already starting to impact the market. BlackRock, the world’s largest asset manager, predicts a historic year for bitcoin and other cryptocurrencies under the Trump administration.

Samara Cohen, the firm's head of ETFs, recently said deregulation will be a catalyst for growth in the sector.

"Bitcoin has already surpassed the $100 mark, and this is just the beginning. In the long run, the level of adoption will determine the price of cryptocurrencies”, Cohen said in an interview with CNBC.

She also highlighted that the market will continue to be volatile, requiring caution from investors, but the potential for appreciation in the medium and long term is significant.

BlackRock has officially launched its bitcoin ETF in Canada, while other companies, such as Calamos Investments, are already preparing new products to meet the growing demand.

Calamos has announced the first bitcoin ETF with full downside protection, a milestone that demonstrates the sophistication and evolution of the digital finance sector.

Analysts predict that Trump’s pro-crypto policies could further boost Bitcoin’s value. Projections indicate that Bitcoin’s price could reach between $225.000 and $400.000 per coin by 2025, depending on the implementation of favorable regulations and institutional adoption.

A scenario of uncertainty

Despite the optimism, the future of cryptocurrencies, especially Bitcoin, under the Trump administration remains uncertain. Many analysts warn that a less restrictive regulatory environment could attract not only legitimate companies but also malicious actors.

Furthermore, political support for deregulation may vary, depending on changes in the global landscape and the impact of decisions on traditional financial markets.

Trump has yet to comment publicly on his specific plans for cryptocurrencies, but his initial moves will be closely watched by investors, regulators and critics. With promises of swift change and a bold stance, the new administration is already stirring intense debate about the balance between innovation and security in the financial world.

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Fabio Lucas Carvalho

Journalist specializing in a wide range of topics, such as cars, technology, politics, shipbuilding, geopolitics, renewable energy and economics. I have been working since 2015 with prominent publications in major news portals. My degree in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10 thousand articles published in renowned media outlets, I always seek to bring detailed information and relevant insights to the reader. For story suggestions or any questions, please contact me by email at flclucas@hotmail.com.

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