Donald Trump will begin his second term in office as president of the United States Monday. After a costly campaign, cryptocurrency finally has a leader.
Bitcoin’s popularity grew after Trump won the election, thanks to Trump’s pledge to establish a strategic bitcoin reserves that would allow US Treasury Department to accumulate almost 5% of bitcoin. Industry participants believe that Trump’s election could still benefit Solana by allowing it to become less of a reserve asset, and focus more on use cases.
SOL was up by 19% during the week before Trump’s inauguration. Assets spiked by 5% after New York Post reports that the incoming President is “receptive to the idea” A second reserve of strategic tokens, such as SOL and XRP in the US.
In that regard, I will say that, while I would be open to playing for the NBA in the future, it doesn’t necessarily mean that this weekend you’ll find me wearing a Knicks jersey. Paradigm Vice President Alexander Grieve, I believe was right on his America-first crypto reserves.
“View such stories with skepticism until it comes from [Trump] or his staff,” Grieve has written in an X message yesterday. “And question why such details might be in the press in [the] first place—[and] who might have put them there.”
The other reports on Trump’s crypto front this week felt more plausible. Reuters said that the Securities and Exchange Commission (SEC) would be reorganized under Trump. “potentially freeze” Crypto litigation is not accompanied by allegations of fraud.
The SEC brought a suit against Coinbase in 2023. It claimed that Binance and Coinbase were operating as unregistered brokerage firms, facilitating trading SOL tokens, among others.
Gary Gensler, the SEC’s Gary Gensler said in essence that US companies that trade the token were breaking the law. The SEC only granted two licenses for its broker-dealer special purpose program, but neither recipient offered SOL. SEC dropped the Solana claims from Binance lawsuit, but the enforcement of Coinbase would also remove a possible major obstacle for the adoption of this network.
SOL ETFs, which would allow regulated Solana Investment Vehicles to trade on public stock markets, are anticipated by many. Polymarket betting firms give SOL’s ETFs 75% of approval in 2025. However, Sol Strategies CEO Leah Wald has said that she does not expect Solana to be approved. “anytime soon” Katherine Ross, Blockworks, recently gave an interview.
Solana will also benefit from a friendly regulatory environment and Trump’s presidency.
The regulatory status of SOL was in doubt, so developers focused on making it easier to trade memecoins, as that was the main focus. “effectively a form of protest” Titus Capilnean – Vice President of Go-to-Market at Civic Technologies – warned that the SEC’s regulatory uncertainty was a concern.
Now that Trump is in office, cryptocurrency “may see a shift from pure speculation to utility-driven growth as builders gain confidence to launch more sophisticated applications without fear of regulatory backlash,” Capilnean Said
Over the past year, many US Solana builders told me that regulatory clarity would give their products a better chance to find product-market compatibility. This is their opportunity to prove it.
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