Bitcoin will start to be of key political importance following Donald Trump and the Republicans’ recent election wins — and investors who don’t own the cryptocurrency can’t ignore it anymore, says 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 added. “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 United States presidency.
The Republicans, who have backed bills the crypto industry has supported, will also form a majority in the Senate and appear on track to keep a majority in the House after flipping a few 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” and could lead to crypto and blockchain being “more accepted into the mainstream financial system.”
“2025 will likely see new heads of nearly every major agency and department with, finally, real potential for pro-crypto legislation and regulation,” he added.
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 has launched numerous lawsuits against crypto companies under Gensler, which Cipolaro speculates will be majorly 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 choose to abandon any potential enforcement action signaled through Wells notices to Robinhood, Crypto.com, Consensys, Uniswap, and Immutable.
Cipolaro said there are likely to be new bosses 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 could take a more favorable stance on banks working with crypto, Cipolaro said, “potentially supporting banks in providing custody services for digital assets including stablecoins.”
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