The cryptocurrency world was set ablaze yesterday as Bitcoin surged to an all-time high, following Donald Trump’s election victory.

This rally comes as no surprise to many in the industry; Trump has been an outspoken supporter of the crypto sector and is widely viewed as a potential catalyst for propelling digital assets into the mainstream.

Better balance

But while optimism swells across the crypto landscape, it’s important to pause and reflect on the path forward. If our friends across the Atlantic are indeed choosing this direction—one that embraces and potentially accelerates crypto adoption—we hope that they do so without side-lining sustainability considerations.

In Europe, significant strides have already been made to ensure that the growth of the crypto industry aligns with environmental goals. The Markets in Crypto-Assets (MiCA) regulation, which mandates sustainability disclosures for crypto-asset service providers, stands as a testament to this commitment.

Meanwhile, during the recent Climate Week NYC, the team at Zumo were inspired by the enthusiasm from U.S. asset managers who demonstrated an increasing commitment to adopting eco-friendly practices.

Energy Intensive future

Blockchain and AI have a transformative potential to build a better world and drive the energy transition, yet we can’t ignore the vast amounts of electricity these industries consume.

It is essential that a Trump administration does not push the sustainability agenda backwards. According to our latest research, in the first quarter of this year alone, the annualised carbon footprint of all physically-backed crypto fund products was equivalent to a person flying from London to New York and back over 1.5 million times, according to a research done by Zumo. https://zumo.tech/tracking-the-carbon-impact-of-bitcoin-exchange-traded-products-q2-2024/.

2030 targets under threat

The AI sector fares even worse in terms of environmental impact. If Trump’s tenure leads to the rapid growth that analysts expect in both crypto and AI, it could pose serious challenges to achieving the 2030 Net Zero targets.

The lesson here is clear: innovation must not come at the expense of the planet. We hope that as the U.S. forges ahead with policies that embrace technological advancements, the administration will remain mindful of the critical balance between progress and sustainability. The future of the digital economy must be one that champions both groundbreaking innovation and a steadfast commitment to protecting our