With Donald Trump re-elected as President of the US, securing 295 electoral votes following a tough campaign against the Democrat’s Kamala Harris, the focus now shifts to how his administration may shape the fintech sector in the coming years.
Although fintech did not feature prominently in the presidential debates, the differing regulatory approaches of Trump and Harris could significantly influence the industry’s development. Insights from professionals across the fintech landscape suggest that Trump’s policies, for example, may lead to notable changes in areas like cryptocurrency and regulation.
Keep digital currencies decentralised
One of the biggest subsectors that will likely see change is the cryptocurrency industry. Under Trump, it is expected that regulators loosen their grip, which according to Mouloukou Sanoh, CEO and co-founder of decentralised finance (DeFi) ecosystem, MANSA will allow for more innovation.
“If Republicans follow through on their promises, this could be a win-win for the DeFi space. Their commitment to safeguarding digital asset rights and resisting central bank digital currencies creates a more welcoming environment for blockchain innovation.
“Clear regulatory frameworks would not only protect investors but also encourage broader participation in tokenised real-world assets. For companies like MANSA, this shift enables us to expand our offerings and drive forward the adoption of blockchain technology in transforming traditional asset markets.”
Amr Adawi, co-CEO and co-founder of MetaWealth
This optimism for the industry is shared by Amr Adawi, co-CEO and co-founder of MetaWealth, the tokenised real estate platform: “The Republican’s pro-crypto stance could significantly benefit the real-world asset (RWA) tokenisation space. Clear regulatory frameworks protecting digital asset rights would enable broader participation from US investors in tokenised real-world assets.
“By focusing on investor protection while limiting unnecessary oversight, this approach could accelerate the adoption of tokenised RWAs by:Providing clarity for issuers on compliant tokenisation structures.
Enabling more efficient secondary market trading of tokenised assets.
Supporting institutional adoption through clear custody and trading guidelines.
Preserving the innovation potential of blockchain technology in modernising traditional asset markets.”
Surging crypto
Shivam Thakral, CEO, BuyuCoin
Another aspect from the digital assets world that experts are excited about is the price of crypto under Trump. Shivam Thakral, CEO of BuyUcoin, the Indian digital asset exchange, expressed: “In the wake of Donald Trump’s election victory, the cryptocurrency market has experienced a remarkable surge. Bitcoin soared above $76,000, marking a new all-time high, while Ethereum climbed above $2,839 and Solana approached $190.
“This surge reflects the optimism surrounding Trump’s pro-crypto stance, which is expected to foster a more favourable regulatory environment for digital assets. The market is gaining momentum, with a few DeFi assets gaining traction. Investors expect sustained momentum as market participants react to the election results, suggesting that this surge could pave the way for further growth in the crypto sector.”
Spotlight: Bitcoin
Also reflecting on the price of Bitcoin following the election results and what trends might emerge in the future, Ryan Lee, chief analyst at Bitget Research, the crypto analyser, said: “In the short term, with Trump re-elected as president, the initial response may involve sidelined funds entering the market out of fear, driving the BTC price to new highs.
“The BTC ETF may see net inflows in the coming trading days, indicating that Wall Street institutions are optimistic about the market’s outlook. The long-to-short ratio of accounts in the futures market is below one, suggesting that institutional investors in the crypto market are taking long positions through futures. The market is currently in a consensus phase of going long.
“In the medium to long term, Trump’s election could benefit BTC, but his policy direction may also increase inflation in the US, with interest rates potentially staying above 3.5 per cent over the medium to long term. With the Republican sweep in Congress, there may be favourable developments in the regulatory framework for the crypto market, which would be a long-term positive for the industry.”
Thriving with less regulation
Monica Eaton, CEO of Chargebacks911
The potential of less oversight in a Trump administration isn’t necessarily a bad thing according to Monica Eaton, CEO, Chargebacks911, the chargeback management firm. The important thing, is the organisations must be proactive and use tools previously unavailable to them she explains.
“The Trump administration needs to take seriously the $243billion lost to chargebacks each year, 75 per cent of which Visa reports is fraudulent. This is significantly more than the $132billion lost to shoplifting each year. If there is an economic bounce-back coming, its impact will be blunted if a significant part of it is drained away by fraud.”
“Any Republican government will mean decreased regulation, and there is every chance that this government will be especially eager to cut red tape.
“You might expect that this will lead to an increase in fraud as more financial services companies take a lax approach to fraud in order to save money, but the opposite is more likely to be true: companies like ours will be freed to pursue fraud more aggressively, using the full range of tools available to us. For example, being able to access more data will mean that our AI systems can make smarter decisions, and a similar light touch around AI regulation will mean that those systems themselves will get smarter quicker.”
Volatility ahead
Benjamin Avraham, CEO and founder of Okoora
Benjamin Avraham, founder and CEO of fintech startup okoora shares what a Trump victory might mean for hedging for cross-border businesses due to increased volatility.
“Trump’s commitment to a strong dollar will face challenges from other aspects of his economic policies. His policies could create conditions that weaken the dollar, affecting profitability for companies involved in global trade. Businesses may need to adopt currency hedging strategies to protect against these fluctuations.
“Under Trump, a combination of tax cuts, infrastructure spending, and protectionist policies could ignite inflation, forcing the Federal Reserve to raise interest rates. Higher rates mean higher borrowing costs, which could stifle investment.
“The key for businesses is to remain agile and adaptable, with a clear understanding of how these possible changes could impact their operations. From adjusting supply chains and pricing strategies to managing currency risk and staying ahead of regulatory shifts, proactive planning will be essential. In a period of heightened volatility, those who prepare well will be better positioned to navigate the challenges and seize the opportunities that may arise.”
Combatting inflation
Rohit Arora, CEO of Biz2Credit
Though there will likely be some volatility in the financial market following the election results, in the long term, some are optimistic about what Trump will be able to do for the economy. For example, Rohit Arora, CEO of Biz2Credit, the online financing platform, said: “President Trump has promised to cut inflation.
“Look for him to curb the spending programs that add to the government debt and result in higher interest rates. He also supports banking deregulation, which slows down the business loan process so that capital can get into the hands of small business owners.
“A new President brings a sense of optimism. Trump means business, and his return to the White House should help restore faith in the American Dream. I would look for him to continue expanding access to capital, which will help strengthen small businesses, the backbone of the US economy.”
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