Bitcoin will gain political importance following Donald Trump and the Republicans’ United States election wins — and investors who don’t own the cryptocurrency can no longer ignore it, according to the New York Digital Investment Group (NYDIG).
“While some investors have allocated to Bitcoin, the most common allocation for investors is still zero. There are no excuses now,” NYDIG’s global head of research Greg Cipolaro said in a Nov. 11 note, adding:
“It is now becoming a political imperative.”
“Not owning the asset is going to become a liability in the future,” he said. “Investors who may have found it easy to dismiss or ignore the asset for various reasons will continue to do so at their financial peril.”
Bitcoin (BTC) is up 84% this year and has continued to reach new highs of nearly $82,000, boosted by Trump winning the presidency.
Bitcoin hit an all-time high of $81,943 on Nov. 11 on Coinbase. Source: TradingView
The Republicans, who have backed bills the crypto industry has supported, will form a majority in the Senate and appear on track to keep a majority in the House after flipping some seats from the Democrats.
Cipolaro said the crypto space now sees itself as having a “place at the table at the highest levels of government,” which may lead to crypto and blockchain being “more accepted into the mainstream financial system.”
He added that “2025 will likely see new heads of nearly every major agency and department with, finally, real potential for pro-crypto legislation and regulation.”
Trump has promised to fire Securities and Exchange Commission Chair Gary Gensler “on day one,” and his team is reportedly eyeing Robinhood Markets’ legal boss as the frontrunner for the job.
The SEC launched numerous lawsuits against crypto companies under Gensler, which Cipolaro speculates may wound back.
“A post-election leadership change may usher in a more accommodating regulatory philosophy,” he said. “This could lead to the SEC seeking settlements with these companies, allowing them to operate within a clarified regulatory framework or, in some cases, dropping certain lawsuits entirely, especially if they’re viewed as not serving the best public interest.”
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He added that the SEC may also abandon any potential enforcement action signaled through Wells notices to Robinhood, Crypto.com, Consensys, Uniswap and Immutable.
Cipolaro said new department heads may be appointed who are “expected to shift toward a more pro-crypto stance” for the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Treasury, along with a new attorney general.
The new regulators may adopt a more favorable stance toward banks working with crypto, Cipolaro said, “potentially supporting banks in providing custody services for digital assets including stablecoins.”
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