Trump's Crypto-Friendly Policies Poised to Ignite M&A Boom in 2025

New leadership in regulatory roles and a wave of deregulation are set to spark a significant rise in mergers and acquisitions in the crypto space. Analysts see Stripe's recent acquisition of Bridge as a sign of what's ahead. The crypto industry is gearing up for its first real M&A season.

With President-elect Donald Trump hinting at financial deregulation and appointing new department heads, experts predict a surge in crypto acquisitions in 2025. Trump has shown support for cryptocurrency and aims to make the U.S. a Bitcoin hub. This is coupled with the expected removal of regulators like Gary Gensler, who have enforced strict rules on the industry.

“A crypto-friendly administration will definitely speed up mergers and acquisitions in this space,” said Michael Ashe, head of investment banking at Galaxy Digital, in an interview with DL News. “As capital becomes available, we expect acquirers to take a more risk-oriented approach.”

Unlike the previous administration, Trump's more relaxed stance on finance has already led to a price increase of over 20% for Bitcoin.

Ashe pointed out that Galaxy is focusing on three main areas: tokenization, stablecoins, and custodians.

Wall Street banks like JPMorgan Chase, Goldman Sachs, and Citigroup are also seeing their stock prices rise. Investors believe these banks will face fewer restrictions on their operations, especially when it comes to advising and financing mergers and acquisitions. At the same time, the valuations of companies involved in these deals are climbing. For example, shares of Capital One and Discover jumped after Trump’s election win on November 5.

Capital One's proposed $35 billion acquisition of Discover has been on hold since February due to scrutiny from various agencies, including the Office of the Comptroller of the Currency (OCC). With Trump likely to replace OCC head Michael Hsu in January and Gensler expected to resign soon, the landscape appears ready for a change.

This shift could signal a vibrant period of M&A activity in the crypto sector. Stronger companies may acquire weaker ones at attractive valuations, marking a departure from the historically low deal activity seen over the past 15 years.

As the industry anticipates this surge, the focus now turns to which sectors might be reshaped by crypto dealmaking.

“It’s tough to pinpoint which niches within crypto will be most attractive for consolidation, given how fast the space moves,” Ashe noted. “At Galaxy, we are focused on tokenization, stablecoins, and custodians.”

In October, Stripe, the well-known U.S.-Irish fintech company, acquired Bridge, a stablecoin infrastructure provider, for $1.1 billion. Eliézer Ndinga, head of business development at investment firm 21.co, believes more deals like this are on the way.

“Existing payment processors need upgrades,” Ndinga said. “We expect acquisition and venture capital activity to increase significantly as companies build better tools for developers in fintech and banking.”