Trump’s policies, regulatory clarity drive crypto optimism

Experts in the Nigerian blockchain and cryptocurrency industry have expressed optimism and confidence in the growth of the industry in 2025, stemming from the pro-crypto nature of President Donald Trump, among other factors.

Just before his return to the White House, President Trump announced the launch of his Trump coin, $TRUMP, on his social media handles. On that same day, the value of the coin shot up to $75, making it one of the most valuable crypto coins. The coin was down to $16.32 (as of 9:54 am on February 23).

He promised Bitcoin fans in 2024 that he would make the US the “crypto capital of the planet.” This shot Bitcoin to a record high of $108,000 in December 2024, and many industry experts have Bitcoin price predictions between $200,000 and $250,000 by 2025. Bitcoin was down to $96,348.58 (as of 9:57 am on February 23).

Tomisin Olatunji, a crypto analyst at Quidax, noted that Donald Trump’s return to the White House, the anticipated approval of more crypto exchange-traded funds (ETFs) which is expected to drive mainstream adoption by providing easier access to digital assets for retail and institutional investors is driving optimism in the market.

This boom is not lost on experts who believe that Trump’s involvement in the sector will be a turning point for the industry, globally and locally.

Chimezie Chuta, founder of Blockchain Nigeria User Group, (BNUG) noted “Since Donald Trump took over the presidency, we observed that the overall perception of crypto on a global scale is being altered and this is a good thing especially because many governments in different jurisdictions make decisions by mirroring America.”

After becoming president, Trump constituted a working group saddled with the responsibility of drafting a framework that will bring clarity, definitions, and expectations that the US Securities and Exchange Commission will use in assessing crypto organisations.

Chuta believes that this step has added clarity which has been the yearning of investors in the space.

“The US wants to make clear which cryptocurrency is for security, which is a collectible, and utility, and this clarity is what most founders and investors have been longing for. It’s going to be redefined from a global perspective,” he added.

Read also: What cNGN, Nigeria’s stablecoin, means for crypto adoption

Godstime Ekashili, a Web3 researcher, shares Chuta’s sentiment noting that Trump’s crypto nod is great for investors’ confidence.

Obinna Iwuno, co-founder of CBC Blockchain Services, shared that President Trump has taken active steps to walk his talk with the introduction of no capital gains tax for holders of cryptocurrencies issued by US companies, like XRP by Ripple, ADA by Cardano, and SOL by Solana.

“This shift is already evident, with CoinMarketCap now featuring a special section called ‘Made in America,’ which didn’t exist before his presidency,” he said.

On the local scene, experts believe this bodes well for Nigeria which is one of the leading nations in blockchain and cryptocurrency adoption. Nigeria’s adoption has been driven by the persistent depreciation of the naira against the dollar with many seeing digital assets as a hedge against inflation. This has made the country through the Securities and Exchange Commission (SEC) accept digital assets after years of outlawing them.

“Crypto provides Nigerians with a unique opportunity to participate in the global economy,” Olatunji of Quidax stated. “Crypto offers people an opportunity to make money, and as the market evolves and activities increase, we anticipate this momentum will positively impact the Nigerian economy, driving innovation, job creation, and financial inclusion.”

Chuta of BNUG notes that SEC’s continued regulatory clarity will lead to institutions and established organisations beginning to look towards the direction of crypto assets.

He stated, “While we might not expect Nigeria to say that they want to have Bitcoin as a reserve asset, I’m expecting that institutions and corporate organisations will begin to look at crypto, especially Bitcoin, as a reserve asset. There’s a reason why Bitcoin is being singled out and not crypto generally, because Bitcoin has a maximum supply and there aren’t many factors that can influence its pricing.”

Another analyst, Deborah Ojengbede, chief executive officer of AFEM Blockchain Network, also shared that 2025 is the year of more regulatory clarity. She stated in a December meeting, that the DG of SEC further gave clarity concerning its Accelerated Regulatory Incubation Program (ARIP).

The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI Program was designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.

“It was reassuring to be there because many of us were wondering, ‘What’s next?’ after submitting our applications and hearing nothing back. During the meeting, the DG addressed our concerns, emphasising the thorough due diligence involved and reaffirming SEC’s commitment to collaborating closely with the startup ecosystem,” she said.

She added, however, that people are getting more educated about the technology which raises the fear of bad actors.

“There’s also a lot of innovation happening in this space, which is good for us but at the same time, this space is exposed to bad actors. You’re hearing about scams and all that happening in this space. So it is really good to see the SEC and other regulators putting in some work to bring some regulatory clarity to this space.”

Ekashili, earlier quoted, noted that the industry is poised to benefit from the emergence of Artificial Intelligence (AI).

“We’re already seeing job losses happen in the crypto industry, thanks to AI. In crypto, communities on platforms like Telegram and Twitter are essential for maintaining engagement and communication with investors. But now, many projects are leveraging AI as community managers and moderators. Instead of human moderators responding to questions, AI handles the interactions seamlessly,” he said.

According to Iwuno, earlier quoted, Nigeria needs to start discussing a national Bitcoin strategy. He said, “It is not too late to start discussing a national Bitcoin strategy and action plans by the Federal Government. The capital market can start looking at a Nigerian-issued Bitcoin ETF.”

Recently, SEC issued the ‘Exposure of Amendments to the Rules on Digital Assets Issuance, Offering Platform, Exchange and Custody,’ policy expected to take effect in June 2025. This move may bring much-needed stability to the digital assets landscape. However, while these rules are expected to bring clarity to the industry, they also introduce substantial compliance requirements that stakeholders must be prepared to navigate.

Osahon Edogun, digital finance and media analyst, added, “These new developments are set to shape a favourable landscape for cryptocurrency. Despite Nigeria’s strict stance, crypto adoption remains strong, prompting a shift from restrictive policies to more collaborative regulations.”