Analyst, "Cryptocurrencies in the Trump Administration Will Be Like a New Space Race," Shared Their Expectations

Since Donald Trump's election victory in November, the Bitcoin price has risen by over 40%, causing optimism in the cryptocurrency sector. Many in the crypto community are hopeful that the new administration will promote a more crypto-friendly regulatory environment.

TRM Labs, a blockchain intelligence firm, with its legal and government affairs chief, Ari Redbord, appeared on CNBC's Squawk Box program to discuss the impact of Trump's presidency on digital assets in 2025.

Redbord said, “Many promises were made during the election campaign, and now we are beginning to see some of these promises being fulfilled.” He emphasized important appointments such as Scott Besson as Treasury Secretary, Paul Atkins as SEC Chairman, and David Sacks, a former PayPal executive, stepping into the role of “crypto czar” in Trump’s administration.

Redbord said, 'When it comes to politics, we see a leadership across the Cabinet that supports digital assets and innovation in general.' He likened the current momentum in the US crypto space to a 'space race,' indicating that the country now has the opportunity to catch up with or surpass global competitors in blockchain and digital assets.

Bitcoin, reaching approximately $100,000 amidst speculation about upcoming policy changes, has been the focus of this renewed optimism. Redbord said, “Bitcoin has traditionally been seen as an investment mechanism or store of value” and added, “But what is exciting is seeing the technology being used in meaningful ways such as cross-border payments, remittances, and more.”

Redbord also commented on suggestions such as the US strategic Bitcoin reserve, which could enhance Bitcoin's role in national and global finance. Similar initiatives are being explored by countries and even US states like Texas, signaling a shift in governments' outlook on cryptocurrency.

Redbord, while rising about Bitcoin's long-term potential, refrained from making specific price predictions. However, implied belief in 'significantly higher' valuations fed by adoption, innovation, and supportive policies under the Trump administration.

Despite optimism, Redbord also acknowledged the ongoing challenges. Redbord stated that there is still a perception among prosecutors that Bitcoin is associated with crime, and emphasized the need for a broader discussion on regulation and implementation to address these concerns.