Deregulation's Boom: How Tech, Biotech, and Fintech Are Poised to Dominate in a Trump-Era Regulatory Shift
29min read The winds of change are blowing through America’s economy. Over the past two years, a bold shift in regulatory policy—led by figures like Kevin O’Leary—has upended traditional barriers to innovation in high-growth sectors. As O’Leary, the self-made billionaire and Shark Tank star, has repeatedly argued: deregulation isn’t just about trimming bureaucracy—it’s about unlocking trillions in untapped value for investors.
O’Leary’s thesis is simple: The best companies thrive when government red tape is cut. This isn’t just about tax cuts or partisan politics. It’s about reshaping industries like tech, biotech, and fintech—sectors where speed, scalability, and risk-taking are paramount. For investors, this means a golden opportunity: identifying the firms that can capitalize on a post-regulatory landscape while avoiding those shackled by outdated rules.
The Tech Sector: AI’s Unshackled Future
O’Leary’s advocacy for deregulation has been most visible in tech. Under policies championed by the Trump administration, industries like artificial intelligence (AI) and mergers & acquisitions (M&A) have seen drastic reductions in regulatory hurdles.
Consider Sam Altman of OpenAI, who openly aligned with Trump’s push to fast-track AI development. As O’Leary noted: "The regulatory environment has made it easier for companies like OpenAI to experiment without fear of overreach." This has translated to a surge in investment: AI startups raised $40 billion globally in 2024, up from $10 billion in 2020, with U.S. firms taking the lion’s share.
NVIDIA, a backbone of AI infrastructure, exemplifies this trend. Its stock has surged 200% since 2023, fueled by partnerships with governments and corporations eager to leverage AI’s potential. Meanwhile, legacy tech giants like Amazon (NASDAQ: AMZN) are using deregulation to expand into new markets, such as autonomous delivery drones—a sector once stifled by FAA red tape.
Biotech: Faster Trials, Faster Profits
In biotech, the shift is equally stark. Regulatory streamlining has accelerated clinical trials and reduced the cost of bringing therapies to market. O’Leary’s own ventures—like his push to scale small businesses—parallel this: "The red tape is gone. Startups can now move from lab to market in months, not years."
Take Moderna (NASDAQ: MRNA), which leveraged accelerated FDA approvals to dominate mRNA vaccines. While critics warn of safety risks, O’Leary’s contrarian stance holds: "The benefits of faster innovation outweigh the risks—especially when it comes to life-saving drugs."
The payoff? Biotech IPOs in 2024 reached a five-year high, with 30% focused on gene therapies—a field once slowed by bureaucratic delays. For investors, this signals a sector primed for breakout gains.
Fintech: Blockchain and the End of Banking Red Tape
Fintech is the ultimate deregulation battleground. O’Leary has long argued that traditional banking regulations—like the Dodd-Frank Act—are relics of the past. "Why should startups have to comply with rules written for 20th-century banks?" he asks.
The result? A boom in decentralized finance (DeFi) and blockchain applications. Companies like PayPal (NASDAQ: PYPL) and Square (NYSE: SQ) are now partnering with regulators to create frameworks that embrace innovation without stifling it. Meanwhile, cryptocurrencies like Ethereum—once seen as regulatory pariahs—are now being embraced by institutions.
Ethereum’s 150% rise since early 2023 underscores this shift. Even legacy banks are pivoting: JPMorgan Chase (NYSE: JPM) now offers crypto trading for accredited investors, a move unimaginable without deregulatory pressure.
The Contrarian Play: Where to Bet—and Where to Flee
The key to success in this new era is sector specificity. Avoid industries still mired in overregulation—like healthcare’s bureaucratic drug-approval processes or energy’s carbon-emission constraints. Instead, focus on three pillars:
- AI Infrastructure: Companies like NVIDIA and Alphabet’s DeepMind (NASDAQ: GOOGL) are building the tools that power tomorrow’s economy.
- Biotech Startups: Look for firms with lean R&D models, like CRISPR Therapeutics (NASDAQ: CRSP), which is racing to commercialize gene therapies.
- Fintech Disruptors: Firms like Block (SQ) and Ripple (XRP), which are redefining payments and cross-border finance.
The Risks—and Why They’re Worth It
Critics will cite risks: lax regulations could lead to data breaches, unsafe drugs, or financial instability. O’Leary acknowledges these concerns but frames them as market discipline in action. "Let the best companies win—without the crutch of government hand-holding," he insists.
For investors, the calculus is clear: deregulation creates winners, losers, and volatility—but the upside for early adopters is enormous. As of May 2025, sectors like AI, biotech, and fintech are at inflection points. The question isn’t whether to act—it’s whether to act now.
Final Call to Action:
- Buy into AI infrastructure stocks (e.g., NVDA, AMD).
- Target biotech firms with FDA-fast-tracked pipelines (e.g., MRNA, CRSP).
- Embrace fintech disruptors (e.g., SQ, XRP).
The regulatory landscape is shifting. Those who move first—and fastest—will own the future.
Data as of May 13, 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.
