Trump Presidency Promises Crypto Growth, Says Coinbase CEO

The presidency of Donald Trump is expected to usher in significant growth for the cryptocurrency market, according to Coinbase CEO Brian Armstrong. Speaking during a panel discussion at the World Economic Forum in Davos, Switzerland, Armstrong expressed optimism about the potential influx of investments into digital assets under the Trump administration.

Ad

“The Trump effect is real,” Armstrong remarked, as reported by Reuters. “Having the leader of the world’s largest economy publicly state his intention to be a pro-crypto president sends a powerful message.”

Armstrong also linked Bitcoin’s recent surge to Trump’s inauguration as the 47th president. On Monday, Bitcoin reached an all-time high of $109,000, driven by renewed enthusiasm among investors. However, the rally was short-lived, as Bitcoin dropped nearly 3% on Tuesday morning to trade around $104,000. The dip reflected disappointment over the president’s lack of immediate action on crypto initiatives.

Advertisement

The overall global cryptocurrency market has also faced a downturn, with the total market capitalization dropping over 2% to $3.58 trillion in the past day, led by Bitcoin’s decline.

One major point of contention was Trump’s failure to establish a national Bitcoin reserve on his first day in office, a move some crypto enthusiasts had hoped for. Alexander Blume, CEO of Two Prime, noted that such delays could spark backlash from the crypto community. However, Blume added that a supportive regulatory environment could still pave the way for wider adoption of Bitcoin and other digital assets.

In a development likely to please crypto advocates, Securities and Exchange Commission (SEC) Chair Gary Gensler officially stepped down on Monday. Known for his stringent stance on cryptocurrencies, Gensler had spearheaded several high-profile cases against major players in the industry, including Coinbase and Binance. Under his leadership, 18% of the SEC’s complaints targeted crypto-related firms.

With Gensler’s resignation, Paul Atkins, Trump’s nominee for SEC Chair, is poised to take over, pending Senate confirmation. Atkins is seen as a more crypto-friendly figure, raising hopes for a regulatory framework that fosters growth and innovation in the sector.

As the Trump administration unfolds, the crypto industry remains eager to see how the president’s pro-crypto stance translates into concrete policy changes that could further fuel market momentum.

Also Read: Bitcoin Price Drops During Trump’s Inauguration Day Trading