The ex-president, Donald Trump, is scheduled to make a return to the White House in January following his victory in the election held on Tuesday. During the campaign, Trump made multiple commitments to the cryptocurrency community, including one to dismiss the U. S. securities and exchange commission (SEC) chief Gary Gensler on the initial day of his term. Approximately six merger consultants and venture capitalists anticipate that Trump will fulfill his commitment to dismiss Gensler, who has relied on enforcement-driven regulation for an extended period. specialists also posit that trump may lay the groundwork for more favorable cryptocurrency regulations.
In anticipation of these upcoming adjustments, merger consultants and venture capitalists informed Bloomberg that they anticipate an increase in cryptocurrency merger and acquisition transactions next year.
Casper Johansen, who leads the Spartan Group’s advisory services for digital assets, stated: “With Trump in the White House, we anticipate 2025 to be a significantly more robust year for dealmaking. “
Dragonfly Capital’s managing partner Haseeb Qureshi mentioned that Trump’s win and the shift in SEC leadership will alleviate concerns about transactions being obstructed, or business avenues being deemed illegal, or facing legal consequences from the SEC.
Several investment bankers specializing in digital assets predicted that many CEOs will utilize acquisitions to accelerate their expansion strategies during Trump’s second presidency.
Some cryptocurrency companies, such as brokerage firm FalconX and Tether, the largest stablecoin operator, have indicated plans for potential transactions. In June, Tether indicated its anticipation to allocate $1 billion towards investments within the upcoming 12 months.
Additionally, Stripe Inc. , a financial technology company valued at approximately $70 billion, disclosed its intention last month to purchase stablecoin startup Bridge for approximately $1. 1 billion. Certain challenges are expected to persist, including the uncertainty surrounding U. S. regulations. Policies and the Securities and Exchange Commission (SEC) were not the sole obstacles in carrying out merger or acquisition transactions. One of the primary causes of failed transactions is the lack of consensus between buyers and sellers on company valuations.
The majority of cryptocurrency firms secured funding during the bullish market phase that concluded in 2022. This indicates that their most recent funding appraisals significantly exceed the present market value. If purchasers and vendors are unable to reach a consensus, the transactions collapse.
