Trump’s policies could take DeFi, BTC staking mainstream: Redstone co-founder
Donald Trump's return to office in 2025 has sparked speculation around the crypto industry about how his administration will affect digital finance.
Marcin Kazamirchak, co-founder and chief operating officer at RedStone, said in an interview with Cointelegraph that the new administration of Donald Trump “could significantly accelerate” the spread of decentralized finance (DeFi).
“Such governance can overcome policies that push definition from the niche to the mainstream, encouraging the flow of innovation and investment,” he said.
Kaźmierczak also explained that the Bitcoin (BTC) price increase has “normally” increased the activity of DeFi services, “When BTC increases, it's not just an isolated rise; it raises the entire DeFi sector.”
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Pro-crypto policies for DeFi development
Kaźmierczak believes the Trump administration could adopt a more crypto-friendly approach to legislation, creating new policies that reduce regulatory barriers while encouraging innovation.
“With Trump at the helm, expect a big wave on DeFi platforms, he can rewrite the rules of Digi-Fi,” said Redstone's founder, Trump and his team on forking Ave and creating World Freedom Finance (WLFI).
However, the launch of Trump's WMFI token on October 16 resulted in a large flow that day, with 848.63 million (4.24%) WMFI sold at 10:00 AM UTC on October 17.
The result is limited control over who can buy the token, website crashes, people seeing it as a scam, inability to transfer the token, and limitations in the purchasing process.
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Could Bitcoin Staking Be the New Investment Standard?
Kaźmierczak also believes that when the price of BTC pushes to $100,000, BTC stock can compete with traditional investments by allowing investors to make a return on their holdings.
“Psychological impact […] Attracting a wide range of investors from retail to highly institutional funds, it could usher in an era in which BTC shares become commonplace as stock dividends.
The implications of BTC's universal functionality — being a store of value and source of income, especially as it nears hitting $100,000 — could hurt both BTC and DeFi.
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Adding to BTC's appeal as a stock, long-term holdings are an incentive that can reduce selling pressure. However, price volatility can still affect this.
Kaźmierczak said that BTC's “popular volatility” functions as both a “magnet for traders and a minefield” that “creates an unpredictable situation that can deter conservative investors and undermine the confidence of participants.”
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