Trump era could propel digital currencies or expose their dark side

Donald Trump’s re-election has reassured cryptocurrency enthusiasts, as his administration has openly embraced a pro-crypto stance. However, as the president will soon be sworn in, cryptocurrency’s fate stands in the balance; it could go mainstream or be brought down by a cast of villains.

There are strong beliefs that the Trump administration will accommodate crypto’s plea for official recognition as a store of value. The idea of Paul Atkins assuming the SEC chairperson has rekindled these hopes because he has been warm towards crypto, unlike his predecessor, Gary Gensler.

During the US presidential election campaign, Trump floated the idea of establishing a national Bitcoin reserve. Such sentiments could mean that regulatory frameworks will favor crypto, even though some critics saw the promise of a Bitcoin reserve as a scam.

Criminal activities might be on the rise with crypto going mainstream

While everything looks exciting, cryptocurrency has a dark side that few people understand. Already, criminals, notorious Irish gangsters, Hamas, Russian arms dealers, and North Korean hackers have moved billions of dollars through stablecoins, including Tether.

Trump’s victory has impacted Tether’s outlook so much. With the current state of Tether as the world’s favorite stablecoin and Trump as the president, Tether might present serious problems. The growth of Tether will leave it exposed and interconnected with Wall Street firms like Cantor, putting the broader financial system at risk in case of crypto crises. Also, a vibrant Tether would create an enabling environment for illegal activities, undermining the government’s ability to fight crime, counter terrorism, and enforce sanctions.

The current happenings are breeding confidence in the crypto space. However, there is no legal foundation or documentation to enforce these brilliant moves. Therefore, it is very difficult to predict how Bitcoin’s future will look.

Will crypto be a team player or an outlaw in 2025 and beyond?

Crypto optimists, including Aaron Brown, have mixed feelings about crypto, although he holds that crypto will likely go mainstream in 2025. He analyzes the journey of cryptos from 2014 when many people thought Bitcoin and other altcoins would not survive and that blockchain technology would remain a minor innovation for a niche application. 

He further outlined how people believed crypto was here with us but wouldn’t deliver a social revolution like the internet did. In 2022, the discussion was if crypto could integrate existing financial regulations and markets or if it would operate similarly to the dark web. We all have the outcomes of the first two scenarios Aaron explored.

The year 2025 will answer the third question. If President Trump walks the talk, the cold war between crypto innovators and governments may conclude. The scenario will allow capital to move freely between the traditional and crypto sectors, enhancing financial inclusion. 

Moreover, Bitcoin and other dominant altcoins may go mainstream. Should this happen, dubious projects and acts of shadowy groups of hackers, anarchists, and libertarians might remain, but the struggles with the law will be out of the equation. This would increase the value of Bitcoin and other respectable digital assets.