Industry insiders: Cryptocurrency M&A transactions are expected to surge during Trump's second term

Odaily Planet Daily Report: About six M&A advisors and venture capitalists believe that Trump will fulfill his promise to fire Gary Gensler, who has been implementing crypto regulation through enforcement for many years. Experts also believe that Trump may pave the way for more favorable crypto regulation. Given these impending changes, M&A advisors and venture capitalists say they expect crypto M&A deals to accelerate next year. Casper Johansen, head of advisory at The Spartan Group, said: "With Trump taking office, we expect 2025 to be a more active year for deals." Haseeb Qureshi, managing partner at Dragonfly Capital, said Trump's victory and changes in SEC leadership would alleviate concerns about deals being blocked, business channels being declared illegal, or SEC legal action. Some investment bankers focused on digital assets say they expect many CEOs to use acquisitions to accelerate expansion plans during Trump's second term as president. Some crypto companies that have revealed deal plans include broker FalconX and stablecoin issuer . In June, said it expects to invest $1 billion in deals over the next 12 months. There is also the $70 billion fintech company Stripe Inc., which announced last month plans to acquire stablecoin startup Bridge for about $110 million. Uncertainty around U.S. regulations and the SEC is not the only challenge in executing M&A deals. A key reason for failed deals is that buyers and sellers cannot agree on the company's valuation. Most crypto companies raised funds during the 2022 bull market, meaning their latest funding valuations are much higher than current market levels. If buyers and sellers cannot reach an agreement, the deal will fail. However, Qureshi said: "On balance, I expect the next four years to be much more favorable than the past four."