Solidgate CEO Yuri Alekseev believes the return of Donald Trump to the White House could bring substantial changes in the digital payments landscape, given the administration’s commitment to deregulation. He said Trump’s previous term marked the biggest rollback in regulations since the 2008 crisis, including aspects of the Dodd-Frank Act designed to minimize risk-taking and provide stability.
This approach will undoubtedly continue, with key Consumer Financial Protection Bureau (CFPB) rules set out under President Biden likely to be revisited. Among these, the proposed regulations on BNPL services could be the first to be repealed.
Alekseev suggests that reduced government oversight and deregulation could reshape the digital payments landscape, driving innovation but also creating challenges like market consolidation and tougher competition for smaller players.
1. Reduced government oversight fosters growth and innovation in the digital payments industry
“Despite the inherent risks, reduced government oversight is poised to create a mоre adaptable environment for the digital payment industry, fostering accelerated growth and innovation,” Alekseev said. “Cryptocurrency, in particular, stands to gain considerable momentum in this flexible regulatory landscape, with the president-elect proposing to build and preserve a government stockpile of digital assets.
“Pledging to make the United States the ‘crypto capital of the world,’ Trump’s policies and advocacy could drive wider adoption of cryptocurrency and help to legitimize its role in everyday transactions.”
2. Deregulation may lead to market consolidation and reduced competition
Alekssev said deregulation doesn’t favor all. Where the Biden administration adopted a mоre stringent stance against industry mergers, Trump’s return to the White House is likely to usher in a mоre permissive approach.
“The outcome of Capital One’s proposed takeover of Discovery Financial could set a significant precedent,” he cautioned. “If approved, it’s likely to accelerate market consolidation, creating barriers for smaller fintech firms and limiting consumer choice as challenger banks and payment providers face increasing pressure to remain competitive.”
3. Economic policies have the potential to boost consumer spending and fintech adoption
Alekseev said economic shifts, such as tax cuts and deregulation, have a history of stimulating consumer spending, which could drive increased adoption of digital payments.
“However, for fintech companies to capitalize, they must adapt — refining their business models, optimizing fee structures, and leveraging advanced technologies to meet the growing demand for quick, secure, and seamless transactions,” he concluded.