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Investment firm Ark Invest has predicted that a second Trump presidency may bring a sea change in the crypto landscape of the United States. In a report published on Monday, the firm explained that major changes could occur in the regulation and market access of digital assets under a Trump administration.

The Cathie Wood-led investment firm added that the digital asset industry will likely spur key policy changes, especially in light of regulatory oversight. In that respect, the firm said, this assumes a significant shift away from the heavy-handed approach of the present SEC towards something crypto-friendly.

"In our view, the incoming Trump Administration is likely to provide the digital asset industry with significant tailwinds and reignite digital assets innovation in the United States," the firm writes in its weekly newsletter, pointing to a slew of key developments that might reshape the industry's landscape.

The biggest potential is the revived possibility of major crypto companies' IPO prospects. For instance, a route will be more illuminated for digital payment leader Circle and cryptocurrency exchange Kraken, among other companies that have shown interest in going public. Circle, the company behind the USDC stablecoin, filed in secret for an IPO last year, while Kraken secured pre-IPO funding of $100 million at the beginning of the year.

The report also expects action on significant legislation, such as the Financial Innovation and Technology for the 21st Century Act, and the Clarity for Payment Stablecoins Act of 2023. Other action might come from a repeal of SAB-121—a contentious SEC guideline now limiting banks’ ability to custody cryptocurrencies.

These forecasts have begun to align with the recent adjustments within Trump's campaign strategy, wherein he has officially endorsed the creation of a U.S. strategic Bitcoin reserve—a plan spearheaded by Wyoming Senator Cynthia Lummis. That stance has been described as a significant about-face for Republican policy on digital assets.