Will Trump become a politically weakened president, or will he react unpredictably to the limits imposed on him? In my assessment, $BTC (-0,05%) a Democratic majority in both chambers of Congress has largely been priced in, which leaves room for a rebound once the uncertainty subsides. The expected outcome therefore need not lead to another sell-off.
The bigger concern is slower crypto regulation. The CLARITY Act, which aims to establish clearer rules for digital assets, is likely to face an uphill battle. Investigations into companies with ties to Trump could also tie up political capital and lead to negative headlines across the entire industry. However, the administration remains in office, and regulatory progress already made—including the GENIUS Act for payment stablecoins—will not simply disappear.
The impact is likely to vary significantly by asset class. We expect U.S. crypto stocks to react more sensitively than #bitcoin—particularly exchanges, token issuers, and companies that rely on new regulatory approvals. Established, compliant providers could gain a competitive advantage if regulators disproportionately target weaker competitors. Miners with existing data centers are also likely to remain in high demand among AI hyperscalers.
(Text by CoinShares’ Head of Research, James Butterfill)
