Ask an advisor: Trump is coming. Should I buy crypto?

Welcome back to “Ask an Advisor,” the advice column where real financial professionals answer questions from real people. The topic can be anything in the world of finance, from retirement to taxes to wealth management — or even advice on advising.

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As Americans prepare for a second Donald Trump administration, a cloud of uncertainty hangs over the economy. Will Trump impose the tariffs he’s promised? Will he extend his 2017 tax cuts? Will he make cuts to Social Security or Medicare? And what effect will all this have on inflation, which the Federal Reserve has only just recently wrestled under control?

But amid all these questions, one thing seems all but guaranteed: The government is about to get a lot more crypto-friendly.

Throughout the campaign, Trump repeatedly avowed his support for cryptocurrency, particularly for bitcoin. He pledged to fire SEC Chair Gary Gensler, who strictly policed digital asset companies, and replace him with former SEC commissioner Paul Atkins, a vocal crypto supporter. (Gensler will avoid hearing “You’re fired!” from Trump by stepping down on Inauguration Day.)

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“Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency,” the Republican Party wrote in its 2024 platform, mimicking the president-elect’s penchant for random capitalization. “We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”

READ MORE: SEC crypto enforcement likely to see rollback under Trump

So for at least the next four years, cryptocurrency seems poised to enjoy a much softer regulatory environment. Does that make it a safer investment? Should the average investor buy in? 

One of those average investors is an actress in New York. Though she’s never bought crypto before, she’s eyeing the market with a sense of impending FOMO (fear of missing out). Here’s what she wrote:

Dear advisors,

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Now that Trump is returning to the White House, should I be investing in cryptocurrency?

I’m an actress in New York, and I’ve never bought crypto before. Apart from my Simple IRA and a Fidelity account I use for some index funds, I don’t do much investing. 

But it seems like the incoming administration is very crypto-friendly, and suddenly digital currencies look like a viable, long-term investment. Since I feel like I’m way behind on investing, wouldn’t it be good to look at all the avenues? Is crypto a buy? And if so, which currency should I invest in?

Sincerely,

Wavering in Washington Heights

And here’s what financial advisors wrote back: