Emily Walker
As President Donald Trump prepares for his second term, expectations are high in the cryptocurrency sector and technology fields. Cathie Wood from Ark Investment Management believes that Trump’s leadership will foster innovation in artificial intelligence, technology, and cryptocurrencies.
In a recent CNN interview, Wood criticized the current Securities and Exchange Commission (SEC) Chairman Gary Gensler’s strict policies on crypto, suggesting they have nearly pushed the US off the global cryptocurrency stage.
According to Wood, the US has fallen behind in digital currency advancements, but with Trump back in office, significant progress is anticipated across multiple sectors.
Emphasizing Key Technologies: Crypto and AI
Wood identifies overregulation as the chief impediment to technological advancement in the US. She argues that Gensler’s stringent regulations have driven talented individuals out of the country, although she expects this trend to reverse with friendlier regulations for bitcoin and generative AI under the new administration.
Wood noted that five dominant technologies—cryptocurrency, energy storage, and multiomics—are shaping the future, emphasizing that the US must lead these technological advancements.
During her CNN discussion, she pointed out that the stock market has concentrated on a limited number of companies in recent years, but anticipates broader growth and innovation with Trump’s return.
Potential for a Regulatory Shift Benefiting Tech and Crypto
Wood argued that the SEC’s excessive regulations have particularly harmed the cryptocurrency industry. She believes that Gensler’s regulatory stance has suppressed innovation. Anticipating looser regulations, Wood is optimistic that this will provide opportunities for smaller companies in emerging technology sectors.
In her interview, Wood also highlighted the challenges faced by the crypto sector under Gensler’s administration, stressing that the US must leverage these technologies before falling further behind other countries.
Additionally, a second term for Trump could reduce the SEC’s influence, as plans emerge to enhance the Commodity Futures Trading Commission’s (CFTC) role to mitigate the effects of overregulation.
Changes Expected During Trump’s Second Term
Wood also touched on potential economic issues, including Trump’s plans for tariffs. While aggressive, she argues they are sensible, particularly when paired with tax reductions to keep businesses competitive. This strategy could lead to increased innovation across sectors.
Market reactions have been favorable, with investors moving towards smaller, high-growth companies. In the realm of digital currency, Bitcoin is reportedly holding strong, nearing the $100,000 price point.
Featured image from The Australian, chart from TradingView