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- David Gerard has predicted that Donald Trump’s influence may play a negative role in shaping the future of cryptocurrency
- Gerard believes Trump’s previous actions toward financial regulation and skepticism of crypto could lead to tighter restrictions, despite him talking up the sector
- The blog post suggests that Trump’s involvement could introduce new uncertainties for the crypto market in 2025
David Gerard, a well-known cryptocurrency skeptic and blockchain commentator, has forecasted a potential impact on the crypto industry when Donald Trump reenters the White House in 2025. In his latest blog post, Gerard suggests that Trump’s influence could be a wild card for the future of cryptocurrency regulation, especially given the former president’s history of skepticism toward digital assets. As Gerard sees it, Trump’s return could bring unexpected challenges for the industry and force new regulatory actions on crypto businesses, despite making several pro-crypto promises.
Trump’s Track Record and Potential for Tighter Crypto Regulations
Gerard points out that Trump has previously expressed distrust in cryptocurrency, famously calling it a “scam” and emphasizing the need for the U.S. dollar to remain the dominant financial standard. “Trump has never been a fan of crypto, and he’s made that clear,” writes Gerard. When Trump returns to the Oval Office, Gerard anticipates that his administration may pursue stricter regulations on digital assets.
“We could see a strong push from Trump to curb what he views as risky and unnecessary innovations in finance,” he explains, suggesting that Trump’s return could result in federal agencies doubling down on crypto regulations. This sentiment aligns with Trump’s previous actions in office, where his administration took steps to limit the reach of cryptocurrencies in traditional finance. Gerard speculates that a similar stance could resurface, potentially leading to aggressive policies aimed at minimizing the influence of cryptocurrencies in the broader U.S. economy.
Market Uncertainty Under Trump’s Potential Influence
Gerard believes that Trump’s unpredictability could introduce new uncertainties for the cryptocurrency market. “Crypto doesn’t respond well to uncertainty, and Trump’s return would bring that in spades,” he argues. In particular, Gerard notes that Trump’s polarizing approach to economic policies could create a volatile environment, making institutional investors wary and potentially discouraging innovation within the industry. According to Gerard, the possibility of sudden regulatory shifts under Trump could lead to “further destabilization of an already volatile market.”
Gerard warns that Trump’s administration might also look to impose restrictions on the trading and use of cryptocurrencies to prioritize the U.S. dollar’s stability. “Trump wants to see the dollar front and center,” Gerard states, suggesting that any alternative currencies, especially decentralized ones, may face new restrictions. He also implies that Trump’s return could catalyze a reevaluation of stablecoins, with a focus on limiting their growth to preserve traditional economic structures.
Trump famously talked up Bitcoin and cryptocurrencies on the campaign trail, but there are no indications he will stick to these, and historical precedent suggest he won’t.
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