The election of Donald Trump has brought fresh optimism to Wyoming’s cryptocurrency and digital asset sectors, with industry leaders expecting a friendlier regulatory environment than under the Biden administration, Cowboy State Daily reports.
Wyoming’s groundbreaking digital asset laws, which have been at the forefront of the US digital economy, faced mounting challenges from federal regulators in recent years. But with Trump’s victory, many in the state’s crypto community are anticipating clearer and more favorable federal guidance.
Bitcoin’s recent spike to $87,000 reflects this optimism, as analysts largely credit the “crypto-friendly” promises of the incoming administration for the rally. This surge is seen as a sign of confidence in a future that could include regulatory clarity and room for innovation in products that don’t fit the traditional securities mold.
Custodia Bank CEO Caitlin Long noted that the regulatory roadblocks facing Wyoming’s Special Purpose Depository Institutions (SPDIs) might finally ease with Trump’s presidency. Custodia, a Wyoming-based digital asset bank, has been in a protracted legal battle with the Federal Reserve for access to a master account—a critical banking feature. Since the Biden administration, Long’s bank went from a promising regulatory position to facing considerable hurdles, which led to an ongoing lawsuit. The appeal in Custodia’s case is set for January 21, a day after Trump is scheduled to take office.
“It certainly seems that he has surrounded himself with people who really get it,” Long said.
She emphasized the importance of Trump’s proposed regulatory appointments to the Treasury, the SEC, and the Federal Reserve.
Long is optimistic that the administration’s fresh approach will eliminate what she describes as a “regulatory morass” that stifled the crypto industry. Trump’s vow to replace SEC Chair Gary Gensler, who has enforced a strict “regulation by enforcement” approach, has particularly cheered the industry. Gensler’s tenure has been marked by actions against major cryptocurrency platforms like Kraken, Coinbase, and Binance, which he argued could be regulated as traditional securities.
American CryptoFed DAO, Wyoming’s first legally recognized Decentralized Autonomous Organization, faced similar hurdles under the Biden administration when the SEC classified its governance and transaction tokens as securities, effectively suspending its operations. The company’s CFO, Xiaomeng Zhou, hopes that Trump will restore “rule of law” at the SEC, allowing Wyoming-based DAOs to operate under the state’s progressive regulatory framework without federal interference.
DAOs are entities governed by their members through smart contracts, a framework that Wyoming has supported as a new model for decentralized corporate governance. For Zhou and others, regulatory clarity could allow them to innovate without being pigeonholed into outdated regulatory categories.
State lawmakers are cautiously optimistic. Wyoming’s blockchain policy co-chair Sen. Chris Rothfuss (D-Laramie) noted that while Trump’s recent pro-crypto stance is encouraging, he remains skeptical due to Trump’s past criticism of digital assets.
“Powerful financial institutions that oppose our crypto efforts still hold sway in Washington,” Rothfuss warned.
Senator added that it’s unclear if Trump will favor Wyoming’s innovation or align with traditional financial interests.
Rep. Mike Yin (D-Jackson) believes the most significant support for digital assets may come from Congress, particularly with Sen. Cynthia Lummis (R-WY) potentially taking on a leading role in the Senate’s digital asset discussions. Lummis, a longtime crypto advocate, has been vocal about the need for federal clarity, which would allow Wyoming’s SPDIs to operate without federal interference.
Lummis issued a statement celebrating Trump’s election as a potential path to solidifying Wyoming’s digital asset leadership.
“Wyoming was the first state in our nation to adopt comprehensive digital asset legislation, and it is past time for the federal government to follow Wyoming’s lead,” she wrote.
Lummis expressed confidence that Trump’s administration and a Republican Senate could bring her Responsible Financial Innovation Act to fruition.
