It has been a great week for the crypto industry, with Donald Trump’s victory in the US election signalling the potential return of a more crypto-friendly administration to the White House.
Trading figures over the past few days indicate the optimism, with bitcoin reaching a record high of $80,000. In Asian markets the digital asset rose by 2.5 % on Monday. Ethereum rose by 8.9% and solana also saw a 4.5% increase.
And it’s not just about the immediate market reaction. Standard Chartered has predicted the global crypto market will reach a staggering $10 trillion by the end of 2026, according to reports. That figure is four times higher than the current value of the crypto industry.
“Crypto has emerged as a powerful political force and it’s one that will prevent any unfair actions from happening.”
Kristin Smith, CEO Blockchain Association
The bank’s forecast about bitcoin’s future is also positive, with values expected to reach $200,000. Ethereum could also reach $10,000, according to the report. These forecasts rely on potential policy shifts by the new US administration in relation to the crypto industry.
Some of those could include, “allowing banks to safely custody crypto assets, Introducing stablecoin legislation to foster broader adoption, halting the SEC’s crypto crackdown, providing clarity for digital assets and considering an ‘unlikely’ US bitcoin reserve,” reports have suggested.
Whatever the policy position of the US government, Standard Chartered has insisted there has to be regulatory clarity around the digital assets in order for institutions to invest in them and adopt them.
Industry reaction
In the meantime crypto bosses are taking joy in Trump’s return to the White House early next year. In an interview with the FT, binance boss Richard Teng called the election result “a big win for crypto” and spoke of the “start of a new golden era” for digital assets.
According to the paper, the crypto industry is relieved at not having to deal with the Democrats’ ‘crypto-hostile’ administration any more. For Binance, the wounds of last year’s $4.3m fine from US regulators are still fresh. US regulators imposed the fine after allegations of anti-money-laundering and sanctions violations.
The crypto industry openly and generously supported Trump’s election campaign. It was therefore only natural that, during his victory speech, he was joined by the likes of Elon Musk, Robert F Kennedy, Jr. and Cantor Fitzgerald CEO Howard Lutnick. As one report highlighted, crypto is the common factor among those names.
And that investment goes beyond just the presidential election campaign. Lobby groups estimate there are more than twice the number of crypto-friendly politicians in the US congress now twice than those who are critical.
Kristin Smith, chief executive of industry group the Blockchain Association, has told the FT: “Crypto has emerged as a powerful political force and it’s one that will prevent any unfair actions from happening. This is an incredibly important moment, we have turned a corner.”
It’s still early days but the industry seems to have realised that, in the long term, cooperation with the regulators – as well as policy clarity – will benefit crypto. It requires a strong regulatory and compliance foundation to achieve its potential and pave the way for more large-scale institutional adoption of the digital assets.
And that will be an ideal scenario for all parties involved.