Altcoins May Outperform Bitcoin Under Trump’s Pro-Crypto Presidency
Smaller cryptocurrencies could gain more traction than Bitcoin as a pro-crypto regulatory environment unfolds under Trump’s leadership.
By Tylt Editorial Team
Altcoins may see stronger growth than Bitcoin due to regulatory clarity.
Trump’s crypto-friendly policies could benefit digital asset markets.
Investors urged to exercise caution as altcoins vary in utility and risk.
As President-elect Donald Trump prepares to return to the Oval Office, the cryptocurrency market is abuzz with speculation about how his administration might impact digital assets. Industry experts suggest that altcoins—cryptocurrencies with smaller market capitalizations than Bitcoin—may have more room to rally than their larger counterpart under the potential crypto-friendly policies anticipated from Trump’s leadership.
Trump’s campaign received endorsements from notable figures in the digital asset space, and his decision to nominate Paul Atkins, a former U.S. Securities and Exchange Commission (SEC) member known for his pro-crypto stance, as SEC chair has further fueled optimism. These developments suggest a potential shift toward a regulatory environment that is more accommodating to digital assets.
Bitcoin, often considered the flagship cryptocurrency, has historically benefited from regulatory clarity, being classified as a commodity rather than a security. In contrast, many altcoins have faced regulatory ambiguity, deterring some institutional investors. SEC lawsuits against multiple digital asset companies have labeled cryptocurrencies like XRP, Algorand, and Polygon as securities, subjecting them to stricter rules. This uncertainty has limited broader adoption of these assets.
However, Samir Kerbage, chief investment officer at Hashdex, believes that greater clarity on cryptocurrency classifications could encourage more investments in altcoins, driving up their prices. Katherine Kirkpatrick Bos, general counsel at StarkWare, also noted that while altcoins could benefit significantly from regulatory clarity, investors should remain cautious. The credibility and utility of altcoins vary widely, with some offering promising use cases while others might be scams.
Despite the optimism surrounding a possible pro-crypto regime, questions remain. Trump’s previous critical remarks about Bitcoin and the unpredictability of his policies leave some uncertainty about the extent to which his administration might fulfill its promises to the crypto industry.
