A venture capitalist predicts a more welcoming atmosphere for new technology under the Trump administration, which could have implications for AI and crypto.

• According to Bradley Tusk, a venture capitalist, continued interest rate cuts and more favorable regulation are leading to a positive outlook for the future, as he stated at the CNBC Financial Advisor Summit on Tuesday.
• New technologies, particularly generative AI and cryptocurrency, are expected to see advancements in the new year due to a more friendly environment.

With the arrival of a new year and a new presidential administration, investors are seeking above-average returns.

According to Bradley Tusk, co-founder and managing partner of Tusk Venture Partners, the current outlook is positive due to the expected incoming regulators in President-elect Donald Trump's administration who are predicted to be more market-friendly, as well as continued interest rate cuts.

Tusk predicted a more welcoming environment for new technology in the fintech, health-care tech, and energy sectors.

Next year, generative AI and cryptocurrency may see advancements in two distinct areas, according to him.

AI still a world of 'unfulfilled potential'

In 2024, companies that have adopted generative artificial intelligence have been viewed as promising investments by many professionals in the stock market.

But 2025 could mark the start of a turning point, Tusk said.

He stated that AI has not yet reached its full potential.

Tusk stated that companies heavily invested in this area are likely to continue investing, despite the promising potential of the technology to revolutionize various fields such as drug development, education, and mineral discovery. However, the technology must demonstrate its economic viability as well.

Tusk stated that at some point, the search engine's potential must be transformed into tangible revenue or cost savings.

Tusk stated that "real leadership on the federal level" is needed for the regulation of generative AI.

Crypto may be 'traded more freely'

Gary Gensler, the Securities and Exchange Commission Chair, has not given favorable views on cryptocurrencies and has not provided significant guidance, according to Tusk.

The new administration may bring a different approach to cryptocurrencies, according to him.

Tusk stated that he believes the SEC, CFTC, Treasury, and other agencies will be more friendly and reasonable towards crypto.

The Financial Innovation and Technology for the 21st Century Act, or FIT21, was passed by the House of Representatives in May. Its objective is to promote the growth of digital asset innovation while ensuring consumer protection and regulatory certainty.

Tusk stated that the bill has a "good chance of passing the Senate now," given the 53 Republican senators.

Tusk stated that the proposed legislation would enable greater freedom in trading crypto and foster more innovation in the space.