Upsides, Downsides and Steps to Take. Welcome to the third installment in our four-part blog series, where we spotlight the new administration’s campaign promises, their potential impact on our clients and helpful marketing strategies to take. If you are in emerging technologies, this one is for you. Keep reading and stay tuned for more.

Time to Get Excited – And Be Slightly Concerned

Well, it’s mostly good news for our friends and partners in emerging technologies, as the new Trump administration has strongly signaled its support for blockchain, cryptocurrency and artificial intelligence (AI). As a result, experts expect newly formed policies to create a dynamic landscape with great opportunities. In fact, Trump has already appointed former PayPal CEO David Sacks as “White House A.I. & Crypto Czar,” a big proponent of emerging technologies who plans to tread lightly regarding regulations.

Of course, this move is sure to appease the incoming President’s tech backers, who “generally want to see minimal regulation around artificial intelligence and cryptocurrencies such as bitcoin,” according to Reuters. However, it also potentially creates room for more growth among existing industry players and openings for new, revenue-hungry startups.

Still, all that said – could too much deregulation and freedom in these spaces be a bad thing? Let’s discuss.

More Blockchain & Cryptocurrency: Upsides & Downsides

Once skeptical of the concept, Trump has recently stated his desire to “ensure the United States will be the crypto capital of the planet,” reports CNBC. It should be no surprise, then, that the administration plans to foster a more crypto-friendly environment, potentially easing regulations and encouraging innovation within the blockchain and cryptocurrency industries.

AND, with Sacks at the helm, most outfits in this space may breathe an extra sigh of relief. He has long been a fan of the technology, even calling it “revolutionary” in a 2017 interview with CNBC. Furthermore, President-elect Trump has nominated prominent Washington lawyer Paul Atkins as Chair of the Securities and Exchange Commission (SEC). According to Politico, Atkins, another cryptocurrency proponent, “would likely weigh unwinding parts of [the existing] agenda and crafting bespoke rules for the crypto market.”

But we don’t need to wait for the new administration to take office to see how the market feels. About one month after Trump’s election win, and on the heels of announcing Atkins’ nomination, the price of Bitcoin “set a new all-time high of $104,000,” according Coin Telegraph. This surge, no question, reflects increased investor confidence in the administration’s anticipated pro-crypto stance and an overall hunger for emerging technologies.

Nevertheless, it’s hard to know exactly what the future holds. And there are a lot of gray areas. For example, Sacks’ czar role is pretty much the first of its kind – not only that, but it’s also part-time. According to Time: “It’s unclear how much power this role actually has… This murkiness, and the fact that Sacks will not have to go through the Senate confirmation process, is drawing concerns over conflict of interest and lack of oversight.”

Will Sacks be able to foster growth for crypto AND ensure the right consumer protections working just 130 days a year?

Too much deregulation could lead to a virtual Wild West of sorts where scammers may thrive more easily. Recently, in Crypto Briefing, Michele Neitz, professor and founding director of USF’s Center for Law, Tech, and Social Good, was quoted as saying: “While a new SEC chair will likely take a softer stance on crypto companies, it’s crucial to ensure that public protection remains a priority. Otherwise, we risk widespread consumer fraud and a backlash against lighter regulation.”

Finally, as it turns out, the growth of cryptocurrency may not be so good for the environment. Right now, crypto mining, especially bitcoin mining, faces criticism for its process, which produces carbon emissions equivalent to burning “96,210 pounds of coal” annually, according to TechTarget. The effect has been a growing discussion over the possibility of sustainable crypto mining and even moves to block crypto mining in certain states, like New York.

More Artificial Intelligence (AI): Upsides & Downsides

Once again, we spotlight Trump’s appointment of Sacks as an indication of more AI innovation to come, especially as regulations soften. His appointment has also led to an expectation that Trump will work to repeal or roll back parts of Biden’s AI Executive Order from 2023, which included requirements to report large AI models and computing clusters to the government.

According to Brookings, the administration may also “elect to rescind” the Office of Management and Budget’s binding guidance for agency use and procurement of AI. And there is likely to be a reduction in AI-related antitrust enforcement.

With deregulation and fewer restrictions, more AI projects become possible, which could result in increased funding for research and development. In turn, we could see a huge industry acceleration over the next four years. Trump could compound this growth by strengthening Biden’s existing AI export restrictions. For example, limiting China’s access to the most advanced AI chips could help U.S. companies maintain the lead over global competitors.

Of course, it is impossible to talk about deregulations in AI without bringing up the obvious ethical concerns. For example, undoing Biden’s AI Executive Order may also remove guardrails relating to privacy and the environment. And there are a few key players surrounding Trump who seem to be fairly opposed to more AI regulation, like JD Vance, who has “dismissed discussions of AI risks as an industry ploy to create regulations,” or top tech investor Marc Andreessen, who called AI regulation a form of “murder,” according to Built In.

Finally, when it comes to the dangers of growing the domestic AI industry, there’s always the risk of vicious competition. Aggressive AI advancement policies might escalate tensions with other nations, particularly China, leading to the opposite of a collaborative global AI landscape. For example, in response to restrictions by the Biden administration on certain exports, China reimposed a ban on materials used in semiconductor and defense technology. This move and others like it could adversely affect our ability to manufacture high-performing chips.

Next Steps: Growing Demand via Engagement & Marketing

We can’t know precisely what the future holds for emerging technologies, but all signs are pointing to an opportunity for serious growth. If this is your field, you are probably looking for ways to make a more significant impact, and now is a great time to spread the word about all the good things your brand is doing for the industry, how it benefits our society as a whole and perhaps why too much regulation may hinder progress.

One engagement tactic is collaborating with policymakers and segment leaders to help shape favorable regulations and standards now that could help your businesses grow well into the future while also ensuring protection for consumers.

Helpful actions may include:

  • Participating in industry groups
  • Providing expert testimony
  • Collaborating on public-private initiatives

There are also many marketing strategies you can deploy to grow the right kind of awareness, including:

  • Educating potential clients and the public about the benefits of your technology
  • Producing content to debunk common misconceptions and build consumer confidence
  • Presentations demonstrating how your company protects customers from risks
  • Leveraging thought-leadership messaging to amplify your voice

With potentially new opportunities in AI and cryptocurrency ahead of us – and with a large swath of society still lacking confidence in these technologies – marketing might be your greatest ally to ensure unfettered growth. By getting the right messaging out to your customers and the general public, you can counteract misinformation, raise awareness of benefits, turn more customers towards your products and procure more funds from potential investors.