NYDIG’s Greg Cipolaro asserts that investors can no longer ignore Bitcoin after Trump and the Republicans’ election wins boost its political relevance.
According to the New York Digital Investment Group (NYDIG), investors who do not now hold Bitcoin will no longer be able to ignore it as it will become more politically significant in the wake of Donald Trump and the Republicans’ victories in the US election.
“The most popular allocation for investors is still zero, even though some have allocated to Bitcoin. In a memo dated November 11, NYDIG’s global head of research, Greg Cipolaro, stated: “There are no excuses now.”
“It is now becoming a political imperative.”
“In the future, not owning the asset will become a liability,” he stated. “For various reasons, investors who may have found it easy to ignore or dismiss the asset will continue to do so at their own financial risk.”
With Trump’s election victory, Bitcoin has risen 84% this year and has reached new highs of about $82,000.
After taking some seats away from the Democrats, the Republicans, who have supported legislation that the cryptocurrency industry has embraced, will create a majority in the Senate and seem certain to maintain a majority in the House.
The cryptocurrency community now views itself as having a “place at the table at the highest levels of government,” according to Cipolaro, which might result in blockchain and cryptocurrency becoming “more accepted into the mainstream financial system.”
According to him, “nearly every major agency and department will likely see new heads in 2025 with, finally, the real potential for pro-crypto legislation and regulation.”
According to reports, Trump’s team is considering the legal head of Robinhood Markets as the front-runner for the position, and he has pledged to replace Securities and Exchange Commission Chair Gary Gensler “on day one.”
Under Gensler, the SEC she has filed multiple lawsuits against cryptocurrency companies, which Cipolaro believes might be retaliated against.
“A more accommodating regulatory philosophy may be introduced by a leadership change following the election,” he stated. “This could result in the SEC pursuing settlements with these businesses, enabling them to function within a more transparent regulatory framework, or, in certain situations, dismissing specific lawsuits completely, particularly if they are thought to be not in the best interests of the public.”
The SEC may also drop any possible enforcement action indicated by Wells’ notices to Immutable, Consensys, Uniswap, Crypto.com, and Robinhood, he noted.
Cipolaro stated that a new attorney general, as well as department heads for the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Treasury, might be nominated who are “expected to shift toward a more pro-crypto stance.”
According to Greg Cipolaro, the new authorities might be more lenient toward banks that deal with cryptocurrencies, “possibly supporting banks in providing custody services for digital assets, including stablecoins.”