The Surprising Force Behind US Crypto Regulations—And Why It’s Not Just Trump

The long-awaited regulatory clarity for US crypto investors is expected to arrive by November 2024—or at the latest, March 2026. While Donald Trump’s administration is poised to play a major role, there’s an unexpected player stepping into the spotlight: the Democrats.

Fear and Influence: How Crypto PACs Are Reshaping Politics

Crypto’s growing political influence is undeniable. By amassing over $133 million in campaign contributions, the industry made waves in the 2024 election. One standout case? FairShake, a crypto-focused super PAC, funneled more than $40 million into Republican candidate Bernie Moreno’s campaign, leading to his shocking victory over long-time Democrat Senator Sherrod Brown in Ohio.

This massive financial push has left Democrats scrambling. As Anthony Scaramucci, hedge fund manager and vocal crypto advocate, put it at the recent Digital Assets Forum in London, “The Democrats are scared out of their minds by crypto political action committees. There is no reason for them to go hard on this industry.”

The Trump Effect: Crypto’s Double-Edged Sword

Despite being a wild card, Trump’s influence on crypto regulation is undeniable. His stance on digital assets has wavered between skepticism and outright embrace—especially when there’s a political or financial advantage involved. But with Trump, as Scaramucci warns, “it’s not an a la carte meal.”

Crypto investors may have been pleased with Trump’s pro-crypto rhetoric but were blindsided by other economic moves—such as his decision to impose 25% tariffs on Canada and Mexico, which sent shockwaves through financial markets. Additionally, his embrace of memecoins has raised eyebrows, prompting concerns about market manipulation and credibility within the industry.

For crypto to truly thrive, the industry needs more than just regulatory approval; it requires stability. Investors want clear guidelines for stablecoins and laws that separate cryptocurrencies from traditional securities. Without these measures, major institutional players will continue hesitating to fully embrace digital assets.

Trump’s Crypto Cabinet: A Boon for the Industry?

Interestingly, Trump’s inner circle may be better positioned than expected to push crypto-friendly regulations forward. Commerce Secretary nominee Howard Lutnick is a known supporter of Tether, while Treasury Secretary Scott Bessent has ties to BlackRock’s Bitcoin ETF. With these figures in key positions, the stage is set for significant policy shifts.

Yet, as BitGalactic sees it, the real force behind regulatory change isn’t Trump himself—it’s the momentum of the industry. Figures like Coinbase CEO Brian Armstrong and other crypto leaders are relentless in their push for legislative progress. As Scaramucci wryly noted, “Even if you come up with a Barron coin or an Eric coin, or you pick the number of coins the Trump family is going to put on-chain, it’s not going to disrupt that momentum.”

BitGalactic’s Take: What Comes Next?

From BitGalactic’s perspective, the crypto industry has evolved past reliance on any single political figure. While Trump’s policies may provide short-term regulatory wins, the broader shift toward mainstream adoption is being driven by institutional demand, public interest, and, most critically, financial influence through lobbying.

Whether it’s Trump, the Democrats, or an unexpected bipartisan coalition, one thing is clear: the crypto industry is now too big to ignore. The coming months will determine whether Washington delivers the clarity investors crave—or if regulatory uncertainty continues to stall mainstream adoption.