Donald Trump’s presidency, starting in 2025, has fueled speculation within the cryptocurrency industry about his administration’s potential impact on digital finance.
In an interview with Cointelegraph, Marcin Kaźmierczak, co-founder and chief operations officer at RedStone, suggested that the incoming Trump administration “could drastically propel” the expansion of decentralized finance (DeFi):
“Such an administration could champion policies that push DeFi from niche to mainstream, catalyzing an influx of innovation and investment,” Kaźmierczak said.
He also noted that Bitcoin (BTC) price surges “typically” trigger increased DeFi service activity. “As BTC escalates, it doesn’t just climb in isolation; it lifts the entire DeFi sector,” he added.
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Pro-crypto policies for DeFi growth
Kaźmierczak suggested that Trump’s administration might adopt crypto-friendly policies, easing regulatory barriers and encouraging innovation.
“With Trump at the helm, expect a bullish wave across DeFi platforms, potentially rewriting the rules of digi-fi,” he said, referencing Trump and his team forking Aave and creating World Liberty Financial (WLFI).
However, the launch of Trump’s WLFI token on Oct. 16 was underwhelming. By 10:00 am UTC on Oct. 17, only 848.63 million, or 4.24% of the WLFI supply, had been sold.
Issues included a complex buying process, limited access, and technical difficulties on the project’s website, prompting some to label the initiative as a “grift.”
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Can Bitcoin staking become a new investment standard?
Kaźmierczak also pointed to Bitcoin staking as a potential game-changer, particularly as BTC approaches the $100,000 mark:
“The psychological impact [...] could open an era where BTC staking becomes as commonplace as stock dividends, attracting a broader spectrum of investors from retail to massive institutional funds.”
The implications of BTC’s potential dual-functionality — becoming a store of value and a source of income, particularly when close to hitting $100,000 — could impact both BTC and DeFi.
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Increasing BTC’s appeal through staking incentivizes long-term holding, which could result in reduced selling pressure. However, price volatility could still impact this.
Kaźmierczak said that BTC’s “notorious volatility” functions as both “a magnet for traders and a minefield for the market,” creating an unpredictability that can “deter conservative investors and skate the confidence of participants.
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