Crypto Custody Market Poised for Growth if Trump Wins Election

In Brief:

The crypto custody market, valued at $300 million and growing at 30% annually, faces high costs and regulatory challenges but may flourish if Donald Trump wins the 2024 election.

Traditional banks are slowly entering the crypto custody space, but regulatory uncertainties, especially from the SEC, continue to pose significant hurdles.

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Crypto Custody Market Poised for Growth if Trump Wins Election

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The crypto custody market, currently valued at $300 million, is experiencing rapid growth despite the high costs and risks associated with safeguarding digital assets. The market could see further expansion if Donald Trump wins the 2024 presidential election, potentially easing regulatory challenges.

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High Costs and Market Potential

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Crypto custody is significantly more expensive than traditional asset custody, costing up to ten times more according to Hadley Stern of Solana custody tool Marinade. Despite these costs, the market is growing at an estimated 30% annually, with traditional banks like BNY Mellon and Citigroup showing interest in entering the space.

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Regulatory Challenges and Potential Changes

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The SEC's rule, SAB 121, poses a major hurdle for financial firms offering crypto custody services. While some banks have received exemptions, the process lacks transparency. The industry anticipates potential regulatory changes if Trump wins, as he has promised to replace SEC chair Gary Gensler with a more crypto-friendly appointee. This potential shift could accelerate the entry of traditional financial institutions into the crypto custody market.

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