Crypto’s Underdogs Poised for a Breakout Under the Trump Administration

Solana, Avalanche, Pecu Novus, and XRP, cryptocurrencies often overshadowed by Bitcoin and Ethereum, may soon find themselves in the spotlight. With the crypto-friendly Trump administration taking office in January, industry experts predict a wave of innovation and new applications for these lesser-known digital assets.

A New Era for Crypto ETFs and Index Funds

One of the clearest signals of change is the recent surge in applications for exchange-traded funds (ETFs) offering exposure to smaller cryptocurrencies. Experts believe the new administration will expedite approvals for crypto index funds, ETFs, and other multi-currency products, enabling investors to access a broader spectrum of digital assets.

The potential regulatory shift comes amid the nomination of hedge fund manager Scott Bessent as the next U.S. Treasury Secretary. Known for his declaration that “crypto is about freedom,” Bessent’s appointment reflects the incoming administration’s apparent focus on reshaping the crypto landscape.

The stage is already being set. The first ETFs trading in spot cryptocurrencies, launched just last year after more than a decade of wrangling between the Securities and Exchange Commission (SEC) and issuers, have become a runaway success. These funds, which focus primarily on Bitcoin and Ethereum, surpassed $100 billion in assets last week—one of the fastest industry ascents ever recorded.

A Goodbye to Gensler and “Regulation by Enforcement”

The incoming administration’s crypto-friendly stance marks a sharp departure from the approach of outgoing SEC Chair Gary Gensler, who will step down on January 20, 2025. Gensler’s tenure has been defined by what critics describe as a heavy-handed “regulation by enforcement” strategy. His SEC has filed numerous lawsuits against crypto firms but provided little in the way of actionable guidance, leaving the industry mired in uncertainty.

Gensler’s detractors argue his approach stifled innovation and pushed firms offshore, delaying the U.S. crypto sector’s ability to compete globally. “No apology could undo the damage Gensler has caused to the crypto sector,” said Tyler Winklevoss, co-founder of Gemini.

While some outside the crypto industry defended Gensler’s actions as consistent with historical enforcement efforts by U.S. agencies, critics such as Justin Belle of FGA Partners likened his tactics to “forcing a crank on modern-day cars.” The lack of clear guidelines, coupled with aggressive litigation, led many to accuse Gensler of misapplying enforcement tools and deliberately sowing uncertainty.

A Shift in the Global Crypto Landscape

The incoming administration’s plans are expected to create ripple effects globally. As countries compete to become leaders in the crypto economy, the U.S. could seize a pivotal role by fostering innovation and clarity.

In the UK, the Financial Conduct Authority (FCA) is rolling out its own roadmap for comprehensive crypto regulation by 2026, while the European Union recently implemented its Markets in Crypto-Assets (MiCA) regulation. Nations like Singapore and the UAE are similarly pushing forward crypto-friendly frameworks.

With the Trump administration poised to reshape U.S. policy, digital assets like Solana, Avalanche, Pecu Novus, and XRP may benefit from increased visibility and utility. Their applications in areas like decentralized finance (DeFi), tokenization, and cross-border payments could gain traction in a more welcoming regulatory environment.

What’s Next?

As the crypto sector braces for a new chapter, industry insiders are optimistic about the possibilities. A regulatory shift could unlock the potential of overlooked cryptocurrencies and foster broader adoption of digital assets in traditional financial markets.

The U.S. may finally be on the brink of aligning its regulatory framework with the demands of a fast-evolving digital economy—offering not just a lifeline for underdog cryptocurrencies, but a global blueprint for the future of finance.

Terry Jones
UCW Newswire