Opinion
The crypto world awaits to see how the US elections results will change the game
As Trump’s administration ushers in a more favorable stance on digital assets, the legitimacy of crypto as a mainstream financial tool is poised to strengthen, writes Ran (Goldi) Goldstein, Senior Vice President of Payments at Fireblocks. With stablecoins leading the charge, the anticipated regulatory shift could allow for rapid expansion in digital asset services across traditional banking and financial sectors.
After a tense wait, the U.S. election results have already started to show their impact on the digital asset market. Based on what we’ve seen so far some significant changes appear to be on the horizon.
First, the legitimacy of crypto as a financial asset will grow stronger over time, especially with President-elect Trump openly supporting it during his campaign. SEC Chairman Gary Gensler, who implemented a stringent "regulation by enforcement" approach toward companies in the sector, is expected to end his tenure—paving the way for a more positive and open attitude toward digital assets.
Stablecoins are likely to be the main drivers and beneficiaries of this change in administration. Over the past four years, crypto and FinTech companies in Washington have raised over $100 million while garnering support from dozens of government representatives to create a regulatory framework for issuing digital currencies like USDC, which are pegged to a stable asset such as the U.S. dollar. However, lack of? Or the legislative background legislation has restricted companies that issue stablecoins, such as Circle or Paxos, from significantly expanding and offering services to traditional financial institutions.
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With the passing of the stablecoin bill, we can expect to see dozens of stablecoins issued in the near future. Projects like PYUSD, PayPal's digital currency, are also likely to become popular among companies holding millions of dollars for their clients and offering payment services. For the issuing companies (like PayPal), profits come either in the form of interest earned on deposits (even when the currency is no longer in the customer's wallet) or through fees for related services, such as payments to suppliers or clients.
We may also see dramatic changes in the approach that traditional banks take , perhaps even as early as next year. It’s plausible that within a year or two, nearly every bank will show interest and involvement in digital assets, with breakthroughs expected in banking and financial services.
Ultimately, the biggest contribution from digital assets is in money transfer, which is anchored by the world’s largest financial institutions. As these institutions embrace a new era, every business and household stands to benefit.
Ran (Goldi) Goldstein is Senior Vice President of Payments at Fireblocks.
