The Trump Effect: A Deep Dive Into How The Crypto Landscape Will Change In 2025 And Beyond

Donald Trump's election win is expected to impact the regulatory landscape for cryptocurrencies, with industry experts advocating for clear, global policies to support mainstream crypto payments.

With the potential for regulatory change under Trump's administration, experts tell Benzinga that clear regulations and technological advancements are essential for building consumer trust and expanding the utility of crypto in daily transactions.

What Experts Say

Azeem Khan, co-founder of MorphL2, highlights the growing interest in stablecoins as a major development in crypto payments, especially in high-inflation regions like Argentina.

In Buenos Aires, Khan noted, stablecoins like Tether (CRYPTO: USDT) are widely used in everyday transactions, with some businesses offering discounts for USDT payments.

“People are naturally gravitating toward stablecoins for both payments and savings,” Khan said.

He explained that stablecoins offer a reliable alternative to volatile local currencies, especially in economies facing inflation.

However, Khan stressed the need for thoughtful global legislation to solidify this trend. "The critical next step is driving sensible global legislation with policymakers," he said, adding that with U.S. regulatory changes on the horizon, the timing for international regulatory cooperation may be ideal.

According to Khan, crypto adoption could benefit from regulatory models led by specific countries, which other nations might adopt if they prove effective.

Petr Kozyakov, CEO of payments infrastructure platform Mercuryo, echoed the call for regulatory clarity, noting that many governments are focusing on consumer protection and anti-money laundering (AML) measures as crypto gains traction.

He pointed to the European Union's recent adoption of the Markets in Crypto Assets (MiCA) framework, which aims to standardize regulations across member states, as a step toward balanced oversight.

"Global regulations around crypto are shifting towards greater consumer protection and AML measures," Kozyakov explained.

He added that in the U.S., regulations targeting stablecoins and crypto exchanges represent a move toward creating clear frameworks for crypto use in payments.

Kozyakov also emphasized the importance of simplified tax treatment for crypto transactions, especially when conversions from crypto to fiat occur.

He noted that in many jurisdictions, crypto payments are treated as a taxable sale, which can complicate adoption for everyday purchases.

“Most countries do not yet consider crypto payments, but when conversions occur before settlement, regulators emphasize the need to declare taxes on income,” he said, adding that clearer tax guidelines could lower barriers for consumers and businesses.

Security And User Experience In Crypto Payments

The security of crypto transactions remains a priority for users and merchants, and advancements are necessary to make crypto payments more accessible, experts say.

Kozyakov believes that multi-signature wallets, which require multiple parties to authorize transactions, could mitigate single points of failure and increase user confidence.

Zero-knowledge proofs (ZKPs) are also promising, he noted, as they allow secure and private transactions without compromising user data.

“Zero-knowledge proofs hold promise for enabling secure and private transactions, enhancing authentication without compromising user privacy,” Kozyakov explained.

Khan also addressed security and usability challenges, observing that current crypto systems can be overly complex for mainstream users.

He noted that expecting people to handle self-custody wallets or store private keys creates friction that most consumers are not prepared to manage.

“Right now, expecting people to handle self-custody wallets and store their own private keys is much more complex than most in the crypto space acknowledge,” Khan stated.

He pointed out that this complexity can deter users from adopting crypto for daily transactions, especially as the industry lacks standardized protections like chargebacks and refunds found in traditional payment systems.

“Basic protections and mechanisms like these need serious work before crypto can become mainstream for everyday use,” he added.

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The Role Of Stablecoins And Scalability In Crypto Adoption

Vitaliy Shtyrkin, CPO at crypto payment ecosystem B2BinPay, highlighted the central role of stablecoins in expanding crypto payments.

Stablecoins, which are pegged to fiat currencies, provide price stability that mitigates the volatility of assets like Bitcoin (CRYPTO: BTC).

“Stablecoins play a vital role in crypto payments because they minimize the volatility associated with traditional cryptocurrencies like Bitcoin,” Shtyrkin explained.

According to Shtyrkin, stablecoins already account for over 80% of the transaction processing volume in the crypto space and are crucial for DeFi applications, online shopping, and remittances.

However, he pointed out that challenges remain, such as regulatory scrutiny, reliance on centralized issuers for asset backing, and limited adoption by mainstream businesses.

Scalability, another critical factor, also needs attention to ensure crypto's readiness for mass adoption.

Shtyrkin noted that while blockchain networks like Bitcoin and Ethereum (CRYPTO: ETH) offer robust infrastructure, they face scalability constraints that limit transaction throughput.

He pointed to solutions like Bitcoin's Lightning Network and Ethereum's Layer 2 protocols, which process transactions off-chain to reduce congestion on the main chain.

"Scaling while maintaining decentralization and security remains a difficult balancing act," Shtyrkin said, adding that improvements in scalability could make blockchain networks more viable for global commerce.

Interoperability And Central Bank Digital Currencies

For the future of crypto payments, interoperability among various blockchain networks is essential, experts argue.

Shtyrkin stressed that seamless cross-chain transactions could alleviate current friction and make crypto payments more user-friendly.

“Interoperability is crucial for the future of crypto payments as it allows different blockchain networks to communicate and exchange assets seamlessly,” he explained.

Innovations like cross-chain bridges and atomic swaps, he added, are helping to create a more connected blockchain infrastructure, which is key for scaling crypto across platforms and industries.

As central banks move forward with digital currencies (CBDCs), the implications for crypto payments could be profound.

Shtyrkin sees CBDCs as both an opportunity and a challenge, as they provide a government-backed digital alternative while raising concerns around privacy and centralized control.

"CBDCs offer enhanced transparency and better integration with traditional banking systems, making digital payments faster and more accessible to the public," he noted, adding that Ripple's (CRYPTO: XRP) role in cross-border CBDC projects underscores the interest in developing these technologies.

These evolving regulatory frameworks and technological advances will be central topics at Benzinga's Future of Digital Assets event on Nov. 19, where leaders like Raoul Pal will discuss how crypto can expand in mainstream finance.

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