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With the recent election results confirming that former US President Donald Trump will once again lead the country in 2025, many experts anticipate a major transformation in the cryptocurrency industry.

Due to their lack of a clear public stance on cryptocurrencies, the Democrats gave the impression that regulations were imminent for digital currencies and the companies promoting their use, such as Bet777 and others.

Will the arrival of Donald Trump have a positive impact on the crypto industry, or will it bring it to a standstill? Find the answer to this question and many more in this article.

The United States Remains a Powerhouse for Crypto-focused Businesses

In the United States, there have been many legislations that aimed to regulate digital currencies and crypto-focused businesses. Despite the recent laws, the cryptocurrency industry is on the rise, with leading players like BlackRock and Fidelity creating tokenized funds and VISA and Mastercard linking their credit cards to crypto-wallets. 

Today, Coinbase, the United States cryptocurrency exchange, reports over $4 billion in revenues from more than $8.5 trillion worth of transactions in stablecoins. The magnitude of the crypto industry has made it incredibly challenging for legislators to consider further regulations. 

Trump's Stance on Cryptocurrency and Regulations in the United States

Unlike the Democrats, Trump openly supported the use of digital currencies in the country. According to his manifesto, he plans to remove the restrictions that are plaguing the industry once he assumes office. 

In a recent presser, the President-elect of the United States blamed the SEC Chairman Gary Gensler for curbing the growth potential of crypto-focused businesses by forcefully enforcing regulations. He has already expressed his intentions to remove Gensler and replace him with a more crypto-friendly leadership. 

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The United States and Its First Crypto Congress

While Donald Trump and his recent win in the presidential elections cemented his position as a pro-crypto president, it's important to remember that the 261 candidates that made their way into Congress are also in favor of digital currencies. 

Due to the massive change in the political landscape, many experts are expecting a strong bullish trend in the crypto industry with a bit of regulatory clarity instead of overly prescriptive regulations. 

The Massive Growth in Prediction Markets in 2024

The 2024 US elections highlighted the accuracy of prediction markets that allow people to bet on the outcome of the presidential race using cryptocurrencies. 

Many advocates spoke in favor of prediction markets, stating that they were much more accurate than the American polls, as they represented the collective wisdom of influential people or individuals who had some skin in the game. 

However, critics refuse to believe that, claiming that the prediction markets were not representative of the average American and were too volatile. 

Before election day, polls indicated a neck-and-neck competition between former US President Donald Trump and Vice President Kamala Harris. However, well ahead of the election results, prediction markets leaned in favor of Trump, giving Republicans a 62% chance of sweeping the presidency, House, and Senate.

According to Dune Analytics, bettors placed more than $2 billion in wagers on the presidential election. While critics are skeptical over the accuracy of prediction markets, they believe that their success in determining the outcome of the presidency, House, and Senate will have a greater impact on their presence in the political arena in the future. 

What Does Trump's Election Win Mean for the Crypto Industry?

After the 2024 landslide victory, Donald Trump is set to shake the cryptocurrency industry in a good way. While he must overcome many regulatory challenges, he has pledged to make the country a global leader in crypto innovation by promoting companies that drive growth in decentralized finance (DeFi). 

Under Trump's administration, there will be more supportive regulations that would allow the cryptocurrency industry to operate without unnecessary restrictions. This would unlock greater potential for digital currencies not just in the United States but also across the world. 

Another major point of consideration is Trump's strong and opposing stance against Central Bank Digital Currencies (CBDCs). European banks have been in constant talks over adopting digital fiat currencies, something that the soon-to-be president is entirely against. 

Trump supported the CBDC Anti-Surveillance State Act in the United States and was against centralized digital currencies due to privacy and individual freedom concerns. This fear seems to be reasonable, as authorities can use CBDCs as a tracking and surveillance tool. 

Since America is a global superpower, it will have a significant role in the competitive digital finance space, and the soon-to-be president and his allies have expressed their disdain over CBDCs. Trump's administration could force European countries to reconsider centralized models. 

Is Crypto Deemed for Success Under the Trump Administration? 

Although the path to adopting cryptocurrencies in the United States and around the world may appear to be clear, the reality is quite different. In fact, some financial analysts believe that crypto prices are highly susceptible to global economic and geopolitical factors.

The recent Russia-Ukraine tensions, fraudulent projects like FTX, and other macroeconomic trends can have an impact on the crypto industry. There is a lot of fear among American banks over the adoption of cryptocurrencies, as they could bring volatility and more risk to the country's financial system. 

Final Thoughts: Is the Future Bright for the Crypto Industry?

While Donald Trump and most of Congress are in favor of cryptocurrencies and crypto-focused businesses, it's too early to predict anything. Looking at the current situation from a different perspective is necessary. 

Donald Trump isn't the first leader to speak in favor of cryptocurrencies. In the past, others have advocated for moving away from traditional banking and embracing digital currencies.

However, the crypto industry has experienced many false dawns and advocates caution that this time may not be any different unless the administration prioritizes sustainable growth.