The United States government is entering a new period of deep changes under the second term of President Trump, and that will be highly reflected in the world of crypto technologies. Last year’s historic moment for Bitcoin sparked excitement throughout blockchain communities with the amazing $100K landmark, and it has remained steadily close to that value. Increasing interest from official institutions for implementation and adoption implies that this field will see massive improvements and backing from a wider range of key figures in the near future. Here we will try to cover all of the ways in which crypto will gain momentum on a global scale through support from the US institutions.
Where We Are Right Now
We can safely say that crypto has never been more popular than it is right now, especially in the US. While many are using the BTC bull market as a good entry point for that train, some businesses have long before made themselves ready for the transition to blockchain-based payment systems. Many marketplaces are already well equipped to handle decentralized and digital payments, and among the pioneers in that aspect are the gaming and gambling industries.
Different branches of digital entertainment have long been pioneers in the technical evolution and adoption of new concepts. It’s no wonder that online casinos like Samba Slots already offer online play with BTC, ETH, Litecoin, and Tether to their visitors for fast, secure, and anonymous transactions. In the world of eSports, many game markets allow the exchange of crypto for in-game currencies that players can use to acquire upgrades, skins, and other cosmetics for their avatars. Even competitive tournaments are sometimes switching to crypto prize pools.
Expansion of the NFT Ecosystem
Recently there was somewhat of a drop in the high-value segment of the NFT market. Celebrities and famous artists are not as popular at the moment, as there are numerous signs of that aspect of the sales significantly slowing down. However, blockchain assets are constantly changing dynamics and thus new use cases for the concept have appeared.
Gaming-related NFTs are becoming a quickly growing trend. GameStop has launched an NFT marketplace recently, and even though there were some regulation difficulties with it at the start, this has shown that there is a lot of interest in digital assets in this world.
So while the “luxury” NFTs are not maintaining their popularity, there’s no lack of interest as a whole, in the US or globally. In fact, experts are predicting explosive growth of the global market, with upwards of $750 billion of revenue by 2034. The USA is still the leader in the number of transactions of digital art, contributing to $7.38B of the total $26.9B of worldwide transactions during 2024. With the increasing number of uses for these assets, numbers are bound to go further up in the following years.
US Government Embraces the Tech
In his first presidential term, Donald Trump was not too keen on the legislation of crypto. However, times have changed–rapidly in this case–and we can see that the initially firm stance against it has moved into a more favorable one. In his recent address at the Ondo Summit, President Trump said that crypto might in fact be an invaluable tool for the US to “continue to dominate the world economy”.
With a more balanced system of regulations and alignment with what are the needs of the blockchain industry, it is certain that the period in front of us will be a win-win for both the tech and the country. We already have some executive actions that were put in place to explore the possible benefits of this tech for governmental and public use. Financial inclusion, supply chain organization, and digital identity protection are all dynamic fields that can be vastly improved through the adoption of new technologies.
More Changes in Leadership
More big changes are on the horizon in the US Securities and Exchange Commission as well. The most likely candidate to succeed Gary S. Gensler will be Paul S. Atkins, who was nominated by the Trump administration. What this will mean for the crypto world is that we can look forward to a gentler hand on the regulations and more support for tech innovations. SEC has already approved some Bitcoin and Ethereum ETFs but the industry is still looking for a more comprehensive and favorable framework in order to take the global leadership spot.
The acting chairman announced recently that a new crypto task force will be launched soon in order to address the regulation of digital assets in the country. Commissioner Hester Pierce, appointed head of the task force, said that they will try to provide clear regulation and registration guidelines with sensible frameworks for disclosure. This will give the legislators much-needed assistance in technical work on the upcoming legislation.
Hopefully, this will also reflect on other parts of the ecosystem as well, especially in the world of digital art sales. There are still ongoing disputes on the regulation of NFT trading where artists are in an ongoing federal lawsuit against the SEC. The move to foster innovation within the agency and relax policies for both cryptocurrencies and other blockchain derivatives like non-fungible digital art would improve not just the state of the industry in the US, but also set an example for the rest of the world.
Roadmap to Global Change
Leading the way for other countries to balance their regulation of blockchain is announced as one of the focuses of growth policies by the Trump administration. The government is working on plans to create a strategic Bitcoin reserve that should provide a safeguarded investment of billions of dollars in BTC. The executive order to strengthen American leadership in digital financing is one of the measures that should set the US as a global pinpoint of blockchain development and crypto innovation. This order is effectively an encouragement for both the companies and the citizens to embrace crypto and develop it further. The government will in turn provide support through USD stablecoins and increased work on regulations and tech-friendly legislature, as well as investments in innovative projects. International push for balanced standards and cooperation in this field is also expected to continue by building on the global leaning towards government cryptocurrencies and stablecoins.
Institutional Adoption Increases
With the launch of the spot BTC ETF, we have seen a record in capital investments. Industry giants are jumping in on the adoption of crypto in levels never seen before. It’s not just the US companies that are a part of this movement, but also the investors from all over the world. This has cemented Bitcoin’s reputation as a valid alternative for traditional currencies, but also as a great way to diversify an investment portfolio for bigger, more strategic players in the world of finance and technology.
With the upcoming change in the legal framework, we are on the track to see blockchain technology used for official financial instruments and an introduction of DeFi concepts into the governmental financial framework at last. The renewed interest from institutions after the elections in November 2024 is now growing as the newly appointed administration is switching to full support for crypto integrations.
Individual Investments on the Rise
Furthermore, crypto has become more than just a method of payment. Reports show that Bitcoin is on the rise as a way to increase and diversify family savings. Once a fixation for early adopters, this is now a way for parents to invest in future schooling for their families, or to create a long-term savings plan for real estate and other bigger investments.
Citi Private Bank has recently released their Global Family Office 2024 survey where they found that 25% of the households already invested in crypto or planned to do so. Amazingly, 19% of the respondents in The Family Office Professional research reported that they have over a billion dollars invested in various digital assets. There is a massive shift towards the mainstream with cryptocurrencies as they offer a lucrative alternative to traditional investment options, and many are already using that to the fullest.
The incoming changes in policies are going to provide a significantly lower bar for entry into the world of crypto markets. While at the moment we still have a landscape that is more attractive to high net worth individuals, the change in regulations and innovations like tokenization of real estate, or fractionalization of NFTs could in a way provide democratization of this world. Tech evolution in fields like video games and new play-to-earn models can provide a valid entry for young fans. Whether through the metaverse or other venues, tech-savvy adopters of innovative concepts and adventurous investors will have an increased number of opportunities to create wealth from these ecosystems as they grow and change under new leadership.
