Is a crypto boom on the horizon, along with Trump’s pro-crypto agenda?

Donald Trump’s recent election victory and his apparent support for cryptocurrencies and blockchain technology may usher in a transformative era for digital assets in the US and beyond.

His pro-crypto policies signal a new approach that prioritizes growth, innovation, and market expansion over restrictive regulations.

With Trump at the helm, we could see an unprecedented surge in tokenization, institutional liquidity solutions, the growth of crypto-focused ETFs, and the ability for individuals to buy and sell crypto more freely. This regulatory shift may set a global standard, inviting other countries to adopt a similar pro-growth approach.

“I believe in the power of Bitcoin and blockchain to reshape our financial landscape,” Trump declared earlier this year, emphasizing crypto’s potential as a cornerstone of future finance. This stance represents a dramatic shift from prior administrations, particularly in contrast to Gary Gensler’s punitive approach at the SEC, which emphasized restrictions and penalties over innovation. Trump’s approach has already boosted confidence in the blockchain sector, with experts anticipating a wave of institutional investment, new market participants, and a broader, more open ecosystem for digital assets.

Tokenization as a Core Investment Opportunity

Tokenization — the digital transformation of real-world assets such as real estate, commodities, and even art into blockchain-based tokens — could quickly become foundational to the investment landscape. By turning traditionally illiquid assets into tradeable tokens, tokenization democratizes access, allowing investors to own fractions of high-value assets that were previously out of reach. Imagine a future where you can buy a small share of prime real estate or an exclusive piece of art; tokenization makes this possible. Trump’s pro-crypto policies could provide the regulatory clarity and support needed for institutions to explore tokenization on a larger scale, enabling broader participation in these traditionally exclusive markets.

This forward-thinking regulatory environment would allow institutions to test, invest in, and mainstream tokenization without fear of restrictive oversight. For instance, banks and funds could integrate tokenized assets into their portfolios, blending traditional and digital assets to optimize liquidity and yield. By encouraging US-based institutions to lead in tokenization, Trump’s policies could set a precedent, prompting other nations to adopt a more supportive stance toward digital asset innovation.

Institutional Liquidity and Exchange Freedom: Key to a Stronger Crypto Market

“We’re removing barriers to innovation in the digital economy,” Trump’s team stated recently, signaling an intention to create frameworks that foster blockchain and crypto growth rather than stifle it. This more supportive environment could be game-changing for institutional liquidity solutions. Major players like banks, hedge funds, and asset managers would gain the green light to engage with tokenized assets and digital markets. Unlike the restrictive and punitive regulations pushed by previous administrations, Trump’s policies suggest an openness to letting the crypto market expand naturally, tapping into its potential to enhance liquidity across the financial system.

Trump’s regulatory shift also holds promise for crypto exchanges. Under a more flexible regulatory approach, exchanges could operate with greater freedom, supporting more accessible and reliable access for institutional and retail investors. This means individuals might soon be able to buy and sell crypto assets more freely, similar to trading traditional stocks.

These policies could boost confidence in the digital economy and solidify the US as a global crypto hub by establishing the US as a haven for crypto exchange operations. Additionally, a more open approach would likely encourage other countries to reconsider their regulatory frameworks, moving away from restrictive measures toward supportive policies that drive growth and adoption.

The Rise of Crypto ETFs: Making Digital Assets More Accessible

The growing interest in crypto ETFs, especially spot Bitcoin ETFs, is another area where Trump’s administration could significantly impact. Unlike futures-based ETFs, spot Bitcoin ETFs track the actual price of Bitcoin, providing investors with a direct and transparent way to gain exposure to the asset. Trump’s pro-crypto stance suggests that his administration may offer the regulatory clarity needed to approve these ETFs, opening crypto investments to a broader audience, including institutional and retail investors who prefer the simplicity of ETFs over directly holding crypto.

These ETFs would serve as a bridge for crypto investors, particularly those seeking exposure to Bitcoin, without the challenges of managing digital wallets or security concerns. As crypto ETFs gain regulatory approval, they are expected to attract substantial interest and inflows from a broad investor base. Such developments could be a tipping point, encouraging other countries to embrace similar products and strategies that make crypto more accessible to mainstream investors.

Establishing a Global Standard for Pro-Growth Crypto Regulation

Trump’s pro-crypto policies offer a supportive environment for U.S.-based innovation and send a message to the global financial community. The US could set a global regulatory standard with flexible and transparent regulations, encouraging other nations to reconsider their stance on digital assets. Rather than following the restrictive and punitive approach under Gary Gensler’s SEC, which focused heavily on enforcement, Trump’s administration aims to foster a market-friendly environment prioritizing innovation, transparency, and access.

By removing these regulatory roadblocks, the U.S. could attract significant international capital, cementing its role as a leader in blockchain innovation. With open, accessible markets for tokenized assets, institutional liquidity, and crypto ETFs, the U.S. could retain and expand its influence over global financial markets, establishing new benchmarks for regulatory practices worldwide.

A New era for digital assets: From transparency to cost efficiency

Trump’s policies are set to make the U.S. a central player in blockchain and crypto innovation, potentially attracting billions in investment. These shifts would make tokenized assets, institutional liquidity solutions, and crypto ETFs widely accessible, enhancing liquidity and allowing individuals to buy, hold, and sell crypto assets quickly. This freedom for exchanges to operate openly would support a more dynamic, resilient crypto market, where blockchain’s benefits — from transparency and cost efficiency to accessibility — are seamlessly integrated into institutional and retail investors' portfolios.

Ana Ojeda, @criptolawyer — Founder of LegalRocks, Lawyer specializing in crypto assets and regulatory law, corporate law expert, BD at enor securities, and Ambassador at Telos Blockchain.