Industry Execs Predict Trump Effect on Crypto, The Fed and More

Donald Trump’s inauguration has generated speculation on a range of financial issues. Continue reading for a selection of industry commentary.

Cryptocurrency

“The most important development will be the legal certainty that comes from a more friendly US regulatory regime. We are now likely to see clearer crypto policies, especially regarding what constitutes a security, while still allowing innovation and growth.

“Of course, a wallet linked to Trump Organization affiliates CIC Digital LLC and Fight Fight Fight LLC owns over 80% of the token, so it doesn’t quite meet the egalitarian ideals of crypto. However, it does suggest Trump will not implement any policies that would hinder the progress of the industry.

“A more pro-crypto administration will pave the way for investment in decentralized hardware, which is essential for the expansion of AI and other data-heavy areas of Web3. The certainty that this administration brings will inspire confidence among venture capitalists and institutional investors to lay out capital for DePIN expansion. This will allow us to start building out the essential infrastructure that we need to grow the next iteration of the Internet in the decentralized manner that is so essential for its sustainable growth.”

Kai Wawrzinek, co-founder of Impossible Cloud Network

However, while the industry has long sought clear regulatory frameworks, there is always the potential for market uncertainty as existing projects adapt to new policies – and some may not make the grade. This could create surprising winners and losers within the crypto industry.

Beyond all this hype, though, balancing innovation with the need for thoughtful regulatory clarity will be tricky, yet essential to ensuring the sustainable growth of the crypto industry in the years ahead.”

Kevin Rusher, founder, RWA tokenization platform RAAC

Bitcoin

“President Trump’s return to the White House could signal the Golden Age for crypto as it’s anticipated to usher in policies favorable to the sector. Trump’s administration has signaled intentions to provide clearer regulatory frameworks, potentially setting up a national Bitcoin reserve, and installing a crypto council of top-level advisors. All of these steps are likely to encourage further institutional investment in digital assets.

“Investors are advised to approach the market with a long-term perspective and to diversify their holdings to mitigate risks associated with price fluctuations. Short-term corrections are expected as part of the market’s natural cycle, providing opportunities for strategic investments. The anticipated policies of the new administration, coupled with Bitcoin’s intrinsic qualities, are likely to solidify its status as a cornerstone of the modern investment landscape.”

deVere Group CEO Nigel Green

“While some might argue the President of the world’s most powerful country has far more important things to address than crypto, few will deny that a quick pro-crypto policy could be a very easy win for Donald Trump. In contrast, everything else he has to tackle, such as US immigration, healthcare, education, and war in Europe and the Middle East – will likely be trickier issues.

“Supporting the prosperity of this asset class also allows the President to support American jobs by encouraging crypto firms to repatriate their businesses back to the US while paving the way for new firms to open. However, on this point, it’s worth noting the executive order Joe Biden issued just last week, which supported both the US AI industry and American semiconductor manufacturers.

“Indeed, Trump or not, America is focussing on bolstering its internal economy, which will be good for crypto – at least in the short term. How this might work in the long term is less clear, but for the moment, we can expect a continued rally of crypto assets as the industry rejoices at a more friendly US regulatory regime under a Trump administration.”

Galxe co-founder Charles Wayn

Strategic Bitcoin Reserve

“We believe that the US’s Strategic Bitcoin Reserve is not just a possibility but an inevitability—one that would be expected to set off a cascade of similar policies worldwide. This could be the beginning of a fundamental shift in how wealth and power are stored and protected. Countries around the world would then be – if they’re not already, as reports suggest – racing to acquire Bitcoin in anticipation of its role as a cornerstone of a new global financial order.

Bitcoin’s ability to protect wealth against inflation is, many believe, unparalleled. By holding it as a reserve, the US not only shields its economy but also positions itself as a leader in the new financial era. This policy could be too strategically sound to ignore.”

Should the US formally adopt an SBR, it will act as a catalyst for other nations. Other economies, as well as major players like China and Russia, are likely to accelerate their Bitcoin accumulation strategies to avoid being left behind.

“This ‘arms race’ (as other countries create reserves) would reshape global monetary systems, with countries vying to secure digital assets just as they did with gold. No major nation can afford to be sidelined in the digital economy. A world where states compete for cryptocurrency reserves would likely redefine the balance of economic power.”

“It would represent the first significant steps in integrating digital assets into national economic strategies, ushering in a new era of financial competition and innovation.”

Nigel Green

Central Bank Digital Currencies

“The executive order also is solid in repealing the Biden administration’s 2022 executive order that encouraged the government to develop a central bank digital currency (CBDC) and in taking a firm stand against CBDCs by any government department, noting that CBDCs threaten privacy and innovation.”

John Berlau, director of finance policy, Competitive Enterprise Institute

“US President Donald Trump took the only sensible approach to CBDCs — an outright ban. US citizens have truly dodged a bullet here. CBDCs were never anything more than a thinly veiled attempt to control the financial freedoms of citizens and it’s a shame other governments aren’t taking the same pro-privacy approach.

“There are plenty of reasons why people might want privacy in their financial transactions — including personal safety — and CBDCs take this away. The digital euro, for example, promises ‘cash-like’ levels of safety, but at the same time allows access to transaction data to check for AML violations. It may sound innocent, but the reality is that we don’t know where compliance with regulations ends and a surveillance state begins.

“I hope other countries working on CBDCs follow in America’s footsteps, even if the motivation is to maintain competitiveness in their banking systems, rather than protecting citizen’s rights. It would still be a win for privacy.”

Alice Shikova, marketing lead,  SPACE ID

Tariffs

“Trump’s tariff plans, including broader duties of up to 20% on all imports, could significantly disrupt supply chains while stoking inflationary pressures. Investors in multinational corporations and export-heavy sectors should remain vigilant for shifts.

“The inflationary impact of these tariffs could push consumer prices higher, potentially forcing the Federal Reserve to reconsider its current rate path and implement additional interest rate hikes. Currency markets are already anticipating these dynamics, with the dollar likely to strengthen in the short term before facing depreciation as inflationary concerns deepen.”

“These tariffs are a tax on American businesses and families. They’ll drive up prices on everyday goods, shrink margins for companies, and trigger a chain reaction of higher costs across the economy.”

“Higher import costs will hit wallets hard, while retaliation from trading partners could hurt American exports and jobs. It’s a lose-lose for the economy.”

“By dangling the threat of tariffs, he’s piling pressure on Mexico and Canada, and sending a warning shot to others like China and the EU. It’s a high-stakes gamble to force better trade terms.”

“If the plan is to boost American manufacturing, it’s a dangerous way to do it. Costs will spiral, allies will retaliate, and the global economy could hit turbulence.”

“This isn’t business as usual. Trump’s tariffs risk creating chaos for global trade, and US businesses and investors need to be ready. This is a wake-up call to focus on long-term resilience as the short-term challenges pile up.”

Nigel Green

Deregulation

“Banking stocks, which rallied post-election, could see further gains as Wall Street prepares for a more business-friendly environment. Financial services firms, fossil fuel producers and digital assets like Bitcoin stand to benefit, with potential ripple effects across equities and credit markets.”

Nigel Green

Defence spending

“Under Trump, defence budgets are anticipated to surge, giving rise to new opportunities in aerospace, cybersecurity, and logistics sectors. This increased spending may strengthen defence stocks, while potentially crowding out private investment in other sectors.”

Nigel Green

Gold

“Trump’s sweeping policies are likely to ignite inflation, further bolstering the appeal of safe-haven assets such as gold. China’s pivot toward gold and away from the dollar is set to exacerbate these trends, potentially leading to record highs in bullion prices.”

Nigel Green

AI

Donald Trump’s announcement of a $100 billion artificial intelligence investment venture, with industry leaders such as SoftBank’s Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison at the helm, confirms dismissing AI as yesterday’s story is a mistake, and every investor must ensure they have exposure to AI.

“Many analysts argue the AI rally is going to dampen this year, but this news reaffirms that we’re merely in a recalibration phase, not a revolution in market leadership. AI is not a fleeting trend—it’s the foundation of the future. Investors who fail to recognize this risk missing out on one of the most transformative opportunities of our time.”

 “Trump’s promise to fast-track these projects using emergency declarations and executive orders further highlights the urgency and scale of this economic shift

“The recalibration seen in AI stocks is not a sign of decline—it’s a natural evolution after explosive growth. Leaders in the sector, such as Nvidia and Microsoft, remain at the cutting edge of innovation, driving advancements in computing, software, and AI infrastructure. Investors shouldn’t mistake short-term market adjustments for the end of AI’s dominance.

“The trajectory for AI remains firmly upward as its applications continue to grow and expand across industries. This isn’t the time to lose confidence.”

“AI is not a speculative play, it’s a structural shift in how industries operate. From equities tied to leading AI companies to diversified technology funds, there are clear pathways for investors to capitalize on this revolution. Companies like Nvidia and Microsoft remain pivotal players, particularly as their contributions to AI ecosystems grow.”

Nigel Green

“President Trump’s announcement of a huge $500 billion investment in AI infrastructure is yet another indicator of how essential this sector will become to the global economy – particularly the physical infrastructure that will be necessary to power it.

“It also reinforces how expensive this infrastructure is – which leads to very high barriers to entry for new market participants. Indeed, the current dominant centralized system inhibits not only users but also builders, making it extremely difficult to migrate stacks from one centralized solution to another.

“In contrast, decentralized cloud computing allows for distributed processing power that does not overburden local energy infrastructure, nor allow any one, two, or three companies to have a monopoly over the entire sector. Indeed, a decentralized Internet, which is possible only through utilizing blockchain technology and web3 mechanisms, is the only way to avoid centralized entities having complete control over our digital future.

“In a fully centralized ecosystem, there is nothing to stop an authority from taking total control of the internet. And we already see that happening in many countries across the globe. As such, if we want to maintain our freedom and liberty, decentralized cloud computing is the only sensible path forward into our AI future.

“Joint ownership of the Internet is the only logical solution to our digital infrastructure challenges, and it starts with building truly permissionless, composable, and jointly owned cloud networks.”

Sebastian Pfeiffer, managing director, Impossible Cloud Network

“US President Donald Trump’s $500 billion private-sector investment in AI infrastructure, announced today, will accelerate the development of sophisticated AI agents that will be able to perform ever more complex tasks. And we will likely see a great deal of this development happening in the US, given Trump’s commitment to produce the electricity required to run power-hungry AI data centers.

“Trump has revoked Joe Biden’s executive order to address AI risks, which imposed strict rules on AI development. This will create a less rigid regulatory environment, allowing AI developers to experiment and innovate. As such, I expect we will see fierce competition for the leading spot, and like any such boom, there will be many losers that disappear into obscurity, just like we saw with the advent of the Internet.

“The AI agents that emerge victorious, though, will change our lives forever. They will work alongside us, run our finances and help us manage our lives. In a few years’ time, we will forget what life was like without AI agents like we forgot how to live without a smartphone. The pace of innovation that is coming will be unprecedented, but it may also be frightening to watch at times. Trump has just propelled us into a new era of robots and machines. The question is, where will our place be in all this?”

Charles Wayn

Trump vs. The Fed

“President Trump’s policies are creating the perfect storm of inflationary pressures, and the Fed may have no choice but to act. This could trigger significant market volatility.  The Fed may feel compelled to raise rates to rein in inflation, which has already proven to be remarkably sticky, but higher interest rates would be expected to slow the economy, impact corporate profits, and shake investor confidence. This is a delicate balancing act with no easy solutions.”

“A diversified strategy, incorporating inflation-hedging assets such as commodities, as well as a focus on high-quality equities and structured products will be key to managing this challenging environment. Investors must be proactive, not reactive. Those who take decisive action now will be better positioned to capitalize on opportunities and mitigate risks in what promises to be a highly volatile period.”

“Emerging markets are typically the first to feel the impact of tighter US monetary policy. Investors should remain vigilant about exposure to these regions and consider strategies to mitigate potential risks.

“This is a time for vigilance and preparation.”

Nigel Green

 

 

 

 



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