Crypto Boom in 2025: Why Coinbase CEO Predicts a New Era After Trump’s Re-Election

Key Insights

• The cryptocurrency market has experienced a significant surge following Donald Trump’s re-election, reflecting the industry's optimism for a crypto-friendly future.
• During the 2024 election cycle, the crypto sector invested hundreds of millions in campaign donations and advertising supporting pro-crypto candidates and initiatives.
• With new leadership expected at the SEC and potential congressional support, the industry anticipates favorable crypto legislation and regulatory clarity.

Since Donald Trump secured a second term as President, cryptocurrency assets have rallied impressively, with Coinbase (COIN) CEO Brian Armstrong describing this moment as the "dawn of a new crypto era."

The industry’s considerable financial backing during the elections, documented by watchdog organizations Public Citizen and OpenSecrets, underscores its commitment to shaping crypto policy.

Bitcoin (BTC) alone has surged over 25% since election day, reaching multiple all-time highs in recent weeks. Here’s what the crypto community hopes to achieve in Trump’s second term.

SEC Leadership Changes on the Horizon

The crypto sector eagerly anticipates President Trump’s pledge to replace SEC Chair Gary Gensler, whose tenure has been marked by stringent regulatory scrutiny.

Industry leaders criticize Gensler’s approach as overly harsh and inconsistent, with the SEC and Commodity Futures Trading Commission (CFTC) accused of uneven enforcement of federal laws.

Although Gensler’s term extends to 2026, legal experts debate the feasibility of his removal, while some expect he may voluntarily step down amid the administration change.

Prospects for New Crypto Legislation

Armstrong shared with CNBC that the incoming Congress in January is poised to be the "most pro-crypto Congress ever," potentially delivering much-needed regulatory clarity.

With several House races undecided, the Republican majority in the Senate combined with control of the White House could enable passage of crypto-friendly laws despite a divided House.

Earlier in May, the House passed the Financial Innovation and Technology for the 21st Century Act (FIT 21) with bipartisan support, though Senate progress stalled due to concerns over anti-money laundering provisions.

Notably, Senate Banking Committee Chair Sherrod Brown’s defeat, influenced by over $40 million in crypto PAC spending, signals a shift toward a Republican-led Senate majority of 53 seats in January.

A More Supportive Regulatory Environment

Robinhood CEO Vlad Tenev told CNBC that the SEC’s "regulation by enforcement" strategy has driven innovation overseas, but new SEC leadership under Trump could foster a more progressive stance on crypto.

Armstrong envisions a future where legislative and regulatory reforms enable companies to issue cryptocurrencies as capital-raising instruments, similar to stocks or bonds, positioning crypto as the next evolution of the stock market.

Coinbase recently introduced the Coinbase 50 Index, tracking the top 50 cryptocurrencies by market value on its platform, akin to the S&P 500. The index currently emphasizes Bitcoin and Ethereum and will be updated quarterly.

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