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The $3.6 trillion global crypto industry is bracing for sweeping regulatory changes under an incoming Donald Trump administration, which could usher in greater regulatory clarity while potentially loosening restrictions on the sector. These shifts might bring a surge of new investors into the fast-growing crypto market.

Ben Kurland, CEO of DYOR Labs, tells TheStreet Crypto that an influx of new investment might create a "gold rush" mentality, exposing retail investors to higher risks. In such an environment, the onus will fall on investors to conduct meticulous research as they navigate crypto's inherent volatility and unpredictability.

The appointment of David Sacks as the AI and crypto czar has engendered hope that a clearer legal framework for the industry is impending. However, Kurland cautions that while this clarity might boost investor confidence, it could also introduce complexities that dissuade less experienced participants. As the industry moves into this new regulatory era, its capacity to self-regulate effectively will be tested, Kurland notes in a recent interview with TheStreet Crypto:

TheStreet Crypto: With the potential for looser crypto regulations under a Trump administration, what opportunities and risks do you foresee for new investors entering the market?

Ben Kurland, CEO of DYOR Labs: Looser regulations could unlock a gold rush mentality in crypto, with new investors flooding the market and innovation skyrocketing. But let’s not sugarcoat it: This environment might also fuel a wave of reckless speculation and scams. New investors need to realize that fewer regulations don’t mean any risk — it means the responsibility is on them to do their homework. The crypto market doesn’t suffer fools lightly, and without proper safeguards, many could learn that lesson the hard way.

David Sacks, Trump's pick for AI and crypto czar, has indicated he’ll work on developing a legal framework to provide clarity for the crypto industry. How do you think this could affect younger investors’ strategies?

Kurland: If Sacks delivers on creating a clear framework, younger investors will likely shift from short-term speculation to more strategic, long-term plays. But here’s the opposing take: Clarity doesn’t always mean simplicity. A defined framework might weed out low-effort projects but could also add complexity that deters casual investors. The winners here will be those who adapt quickly, treating this as an opportunity to play smarter, not riskier.

How do you think the combination of AI and crypto under one policy-making umbrella (under Sacks) might impact innovation and investment in these sectors?

Kurland: Combining AI and crypto under one policy umbrella could either create a wave of innovation or a regulatory nightmare. The similarities between decentralized systems and AI-driven solutions has game-changing potential — think autonomous DAOs or decentralized data marketplaces. But let’s not forget that AI and crypto are both disruptive in ways governments don’t fully understand. One-size-fits-all regulation risks stifling both industries. Bold, targeted policies will be the key to unlocking their combined potential.