NYDIG predicts that Bitcoin will turn into a political imperative, and not having any could become a major liability.
Greg Cipolaro of NYDIG pointed out that after Donald Trump and the Republicans triumph in the US elections, investors will have no choice but to adopt Bitcoin.
With the Republican and Donald Trump victories in the US elections, NYDIG predicts that Bitcoin will acquire political significance, and investors will no longer be able to overlook it.
“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 has surged 84% in 2024, hitting nearly $82,000, a rise that analysts attribute to Trump’s victory in the presidential race.
The crypto industry supports the Republicans, who are expected to hold a majority in the Senate and likely to keep a majority in the House, having flipped 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 pledged to remove Securities and Exchange Commission Chairman Gary Gensler “on day one,” and sources indicate that Robinhood Markets’ legal executive is the front-runner for the position.
The SEC filed several lawsuits against crypto companies under Gensler, and Cipolaro believes that this aggressive stance could soften.
“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.”
He added that the SEC might choose not to pursue any enforcement actions hinted at by Wells notices to firms such as Robinhood, Crypto.com, Consensys, Uniswap, and Immutable.
Cipolaro suggested that with new department heads likely to be appointed, a more pro-crypto approach could emerge within 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 lean towards a more crypto-friendly stance, Cipolaro mentioned, “potentially supporting banks in providing custody services for digital assets including stablecoins”
