Trump Administration Expected to Boost Crypto Investments

The incoming administration of President-elect Donald Trump is expected to bring a wave of pro-cryptocurrency policies, potentially leading to increased acceptance of bitcoin among U.S. states. Advocates argue that bitcoin could serve as a hedge against inflation and that government adoption might stabilize its volatile price. However, critics caution about the speculative risks associated with crypto investments, particularly for public pension funds, which have historically been hesitant to invest in such volatile assets. A recent U.S. Government Accountability Office study highlighted the lack of standardized methods for assessing future returns on cryptocurrencies. Despite some attempts to pass legislation allowing public pension funds to invest in bitcoin, such as a bill in Pennsylvania, significant investments remain improbable in the near term due to concerns over volatility and risk alignment. As the crypto lobbying effort expands, more states are anticipated to introduce legislation to foster a crypto-friendly environment in 2025.