Thematic Spotlight: President Trump Ushers in New Age for Crypto

Is the US on the verge of a pro-crypto era? If President Donald Trump’s actions are anything to go by, the answer appears to be yes. Last week, Trump launched the “official Trump meme coin,” a virtual token billed as a “piece of history” for speculative collectors.1 The coin, which offers no practical utility, became an overnight sensation, claiming the title of the world’s most traded cryptocurrency and reaching a liquid market cap of over $8 billion in just three days.2 According to Forbes’ live billionaire list, this meteoric rise more than doubled Trump’s personal wealth.3

But beyond the spectacle lies a more consequential narrative. Trump’s personal foray into crypto signals a departure from the regulatory gridlock and scepticism that has long defined the US government’s approach to digital assets. Furthermore, reports suggest that Trump is considering an executive order which positions crypto as a government priority, opening doors for industry leaders to have more influence in shaping policy.4 The resignation of SEC Chair Gary Gensler, a noted crypto hawk, also removes a major obstacle to the sector’s ambitions for broader institutional acceptance.5 The crypto community, sensing a seismic shift, is embracing Trump’s return with enthusiasm. Bitcoin is revisiting all-time highs last hit in December 2024, and crypto industry leaders convened just blocks from the White House to celebrate Trump’s inauguration, hailing him as the “first Crypto President.”6

Of course, there are still serious questions yet to be addressed. The Trump meme coin, for all its immediate market appeal, is likely to draw scrutiny from regulators and watchdogs over its ethical and legal ambiguity. Moreover, whether a pro-crypto agenda can balance innovation with consumer protection remains an open debate. What is clear, however, is that Trump’s embrace of cryptocurrency has injected fresh momentum into an industry long hungry for political and institutional legitimacy. If the administration follows through on expectations, the US could well be on the cusp of a transformative shift in how it regulates and integrates digital currencies into the broader economy.

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Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at  21/01/2025. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.

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This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.