Ark Investment Management CEO Cathie Wood expressed optimism about the potential for looser regulatory policies under President-elect Donald Trump’s administration, particularly in areas such as technology, cryptocurrencies and artificial intelligence (AI).
Speaking on CNN's Inside Politics today, Wood said reducing regulatory burdens could help the U.S. regain its position as a global leader in innovation.
“The U.S. has almost lost ground in the crypto space,” Wood said, attributing the situation to overregulation during SEC Chairman Gary Gensler’s tenure. He added that the Trump administration’s expected regulatory overhaul could spur growth in emerging sectors like crypto and artificial intelligence, allowing the country to regain a leadership position similar to its dominance during the early internet era.
“A change in the regulatory system where both crypto and AI are the main focuses would be quite significant,” Wood said.
Cryptocurrencies and artificial intelligence, as well as other transformative technologies such as robotics, energy storage and multiomics sequencing, are also critical platforms that the U.S. must “seize and exploit,” Wood said.
Asked about Trump’s proposed tariffs on trading partners, Wood agreed with the approach, saying it made “some sense” if it was balanced with tax cuts to maintain competitiveness.
Wood also commented on the potential impact of Trump's return on the stock market, predicting a shift away from the concentrated gains seen in recent years toward broader growth opportunities.
“We’ve seen a huge concentration in a very small number of stocks over the last four years,” he said. “I think the market is going to expand right now and reward companies that are at the forefront of innovation.” That broader growth could particularly benefit small and medium-sized businesses, Wood said.
*This is not investment advice.
