Former President Donald Trump won Tuesday's election and is expected to return to the White House in January. During his campaign, Trump made several promises to the crypto community, one of which was to fire US Securities and Exchange Commission Chairman Gary Gensler on his first day in office. It was.
About a half-dozen merger advisers and venture capitalists believe President Trump will follow through on his promise to fire Gensler, who has long used enforcement regulations. Experts also believe that President Trump could pave the way for more favorable crypto regulations.
Given these upcoming changes, merger advisors and venture capitalists told Bloomberg that they expect the pace of crypto merger and acquisition transactions to pick up next year.
Casper Johansen, head of Spartan Group's digital asset advisory business, said:
“With Trump in the White House, we expect 2025 to be an even stronger year for deal-making.”
Haseeb Qureshi, managing partner at Dragonfly Capital, said Trump's victory and the change in SEC leadership could result in transactions being blocked, business channels being declared illegal, or legal action being taken by the SEC. This will alleviate concerns about being taken.
Some investment bankers focused on digital assets said they expect many CEOs to use acquisitions to accelerate expansion plans under President Trump's second administration.
Cryptocurrency companies that have signaled plans to trade include brokerage firm FalconX and Tether, which operates the largest stablecoin. Tether said in June that it expected to invest $1 billion in trading over the next 12 months.
There's also Stripe, a fintech company worth about $70 billion that last month announced plans to acquire stablecoin startup Bridge for about $1.1 billion.
Some hurdles will remain
U.S. regulatory and SEC uncertainty were not the only challenges in executing merger and acquisition transactions. The main reason deals fail is that the buyer and seller cannot agree on the valuation of the company.
Most crypto companies raised funds during the bull market that ended in 2022. This means that the last funding valuation was much higher than the current market. If the buyer and seller cannot reach an agreement, the transaction will fail.
However, Qureshi said:
“All things considered, we expect the next four years to be much more favorable than the last four.”
mentioned in this article
