Donald Trump at the 2024 Bitcoin Conference in Nashville, Tennessee. (Photo by Johnnie Izquierdo for The Washington Post via Getty Images)
The Washington Post via Getty Images
Crypto winter? Above. Fallen empires and courtroom drama? In the rear view. The survivors? Battle hardened and looking to the horizon like it’s the next gold rush.
After years of disputes with the US Securities and Exchange Commission (SEC), Bitcoin and Ether exchange-traded funds have emerged. According to Norway-based K33 Research, U.S. Bitcoin ETFs held $129 billion in assets as of Dec. 16, surpassing gold ETFs’ $125 billion.
A post-election cocktail of market euphoria and Donald Trump’s promise to make the US the “crypto capital of the world” and establish a strategic Bitcoin reserve pushed Bitcoin past $100,000.
Solana is having a moment, fueled by the memecoin hype and new categories like dePINs – networks that use blockchain technology to decentralize control and ownership of physical infrastructure. Platforms such as Polymarket, where users bet on the outcome of the US presidential election, and the battle royale game Off The Grid have enjoyed great success. A new wave of “Degens” is relying on tokens like Fartcoin and Dogwifhat, both of which now have a market capitalization of over $1 billion.
“It is the year that crypto has come into mainstream consciousness in a way not seen since 2021, and that it is now a sustainable, long-term asset class that has a voice and is supported by will be significant,” said Rob Hadick, general partner at Dragonfly, a San Francisco-based crypto venture capital firm. “If you just look at the impact that cryptocurrencies have had on elections – both as donors and in terms of pushing them forward in legislatures and for presidential candidates – it’s never been done before and is obviously a big step forward in the process Legitimation.”
With Trump and a cadre of crypto-friendly officials about to take office, the stage is set for what insiders are already calling the “golden age of cryptocurrency.” Here’s what’s brewing:
New all-time highs and the US Bitcoin reserve
The art of bold price prediction is back in style. Crypto asset manager Bitwise predicts $200,000 – or even $500,000 – per Bitcoin if the US creates a strategic reserve similar to those for oil or gold. The logic: Official US Bitcoin holdings would trigger global FOMO.
Trump used 200,000 Bitcoins confiscated from criminals (worth $21 billion) to boost the reserve at the Bitcoin conference in Nashville in July. But the legal path is unclear – does it require congressional approval or can the executive branch act unilaterally? Pro-crypto Senator Cynthia Lummis proposed a Treasury-managed reserve in July. Skeptics argue that the asset’s volatility could threaten financial stability. Trump’s silence on whether the US would acquire more Bitcoin through open market purchases adds another layer of intrigue.
Crypto’s Regulatory Reset: A Friendly Washington
The new government appears to be the most crypto-friendly yet. The most important dates include:
- US Securities and Exchange Commission (SEC): Paul Atkins, a former SEC commissioner and crypto advocate, is poised to replace industry nemesis Gary Gensler, whose tenure was marked by lawsuits and enforcement actions.
- The Commodity Futures Trading Commission (CFTC): Brian Quintenz, head of policy at Andreessen Horowitz and a former CFTC commissioner, is the leading candidate to lead the agency.
- Ministry of Finance: Hedge fund billionaire and Bitcoin advocate Scott Bessent is Trump’s pick for secretary.
- Trade: Howard Lutnik, CEO of Cantor Fitzgerald (the main custodian of Tether’s USDT reserves), will lead the department.
- AI and Crypto Czar: David Sacks, a longtime venture capitalist who also worked with Elon Musk at PayPal, will oversee policy in two key areas of Trump’s strategy to improve national competitiveness.
- The House Financial Services Committee: Rep. French Hill, an Arkansas Republican who has pushed for industry-friendly crypto legislation alongside outgoing Chairman Patrick McHenry (R-N.C.), plans to prioritize the crypto market structure bill within the first 100 days to admit and investigate the so-called Operation Choke Point 2.0, which many believe unfairly targets the crypto sector through debanking practices.
“There is a real opportunity to put good policies in place for the industry,” says Kristin Smith, CEO of the Washington DC-based Blockchain Association, which represents more than 100 crypto companies. “The White House has indicated that this is a priority. “I think we’ll see a combination of whole-of-government efforts, a legislative push for market structure and stablecoins, and a big shift toward a lot of innovation coming back to the U.S.,” she adds.
New public listings and available capital
The pipeline of crypto IPOs is gaining momentum. Bitwise names five companies expected to go public next year:
- Circle: The issuer of the second largest stablecoin USDC confidentially filed for an IPO in January.
- Figure: The company is known for blockchain-based financial services such as mortgage lending, personal loans and asset tokenization and has reportedly been exploring an IPO since last year.
- Octopus: The US-based crypto exchange has IPO ambitions stretching back to 2021.
- Anchorage Digital: Its status as a state-chartered bank could pave the way
- Chain analysis: a leading provider of blockchain compliance and intelligence services ready for public listing.
Additionally, Hadick of Dragonfly says, “I…
