Convergence Of TradFi And Crypto: Optimism Grows Under The Trump Administration

Jenny Johnson, CEO of Franklin Templeton, expressed her optimism regarding the future of crypto regulation under the Trump administration. In a recent interview, Johnson predicted that the Trump administration would work towards integrating traditional finance (TradFi) and cryptocurrencies, thus bringing much-needed regulatory clarity to the United States.

The Trump administration could transform the financial industry in the United States

In the wake of Donald Trump’s inauguration, Jenny Johnson emphasized on January 21, 2025, that blockchain technology could revolutionize the financial industry. In particular, it could facilitate the creation of exchange-traded funds (ETFs) and mutual funds. Furthermore, she compared the rise of crypto to the internet bubble of the 1990s, where some of the largest companies emerged despite the bubble bursting.

According to Johnson, the integration of TradFi and crypto could reduce costs and stimulate innovation. Moreover, she emphasized the need for a clear regulatory framework to enable this convergence, stating that it would allow leveraging the technological advantages offered by blockchain. As Ryan Lee, chief analyst at Bitget, also believes: 

Donald Trump’s efforts to integrate traditional finance with cryptocurrencies could potentially transform the financial landscape by driving institutional adoption and fostering innovation in financial services…However, it also introduces challenges, including higher compliance costs, heightened security concerns, and the persistent issue of managing market volatility. Regulatory clarity in this context could act as a catalyst for market growth, offering a stable framework for crypto businesses and attracting broader market participation, which may help stabilize cryptocurrency markets.

The Trump administration, which took office on January 20, 2025, has not yet addressed policies related to cryptocurrencies, despite pro-crypto promises made during the campaign. However, many pro-crypto candidates were elected to Congress, which raises hopes for a more favorable approach to digital assets. Additionally, Donald Trump has just granted clemency to Ross Ulbricht, the founder of Silk Road, after more than 11 years of imprisonment.

The challenges of the crypto industry

Johnson mentioned the challenges that the crypto industry may face, comparing the current situation to that of the internet bubble. Indeed, while some companies will thrive, others may inevitably disappear. Furthermore, she emphasized the importance of recognizing blockchain as an effective and promising technology for the future of finance.

The integration of traditional finance and crypto under the Trump administration could thus transform the financial industry. However, regulatory clarity is essential to maximize the benefits of blockchain, while overcoming potential challenges. Jenny Johnson’s optimism reflects a promising vision for the future of digital assets in the United States.