The Reshaping of Media and Tech Valuations: Government Policy and the New Era of Deregulation

The interplay between government policy and market dynamics has never been more pronounced than in the current era of rapid technological innovation. Recent shifts in U.S. regulatory frameworks—particularly in artificial intelligence (AI) and cryptocurrency—have created a seismic reordering of valuations in media and technology sectors. These changes, driven by a deliberate pivot toward deregulation under the Trump administration, reflect a strategic recalibration of the relationship between state authority and private-sector innovation.

The Deregulatory Turn in AI and Its Market Implications

The Biden administration's 2023 AI executive order, which imposed stringent safety and privacy standards, initially curtailed speculative enthusiasm for AI-driven tech stocks. However, the Trump administration's 2025 reversal—embodied in the “Removing Barriers to American Leadership in Artificial Intelligence” directive—has unleashed a wave of optimism. By dismantling compliance burdens and prioritizing infrastructure investment, the Stargate project—a $500 billion initiative involving OpenAI, Oracle, and Nvidia—has become a catalyst for market gains. For instance, Oracle's stock surged 6.75% and SoftBank's shares rose 11% immediately following the announcement, while Nvidia's market capitalization hit $3.6 trillion as demand for AI semiconductors spiked 2025 regulatory preview: Understanding the new US …^[1].

This deregulatory approach contrasts sharply with the fragmented state-level AI legislation emerging in 2025. States like Arkansas and New York have enacted laws governing AI-generated content ownership and transparency, creating a patchwork of compliance requirements. While these laws aim to address ethical concerns, they risk increasing operational costs for tech firms, particularly those operating at scale. The resulting tension between federal deregulation and state-level oversight underscores the complexity of navigating the new regulatory landscape Tech law in 2025: a look ahead at AI, privacy and social …^[2].

Crypto Policy and the Rise of FinTech Valuations

The Trump administration's executive order on digital financial technology has further reshaped market dynamics. By rescinding the SEC's SAB 121 and promoting blockchain innovation, the administration has signaled a pro-crypto stance that has buoyed FinTech stocks. For example, DLocal's Total Payment Volume (TPV) reached $9.2 billion in Q2 2025, while Affirm and SoFi saw year-to-date gains of 47% and 65%, respectively Fintech Stocks Surge: DLO, AFRM, and SOFI^[3]. These gains reflect investor confidence in a regulatory environment that prioritizes scalability and institutional adoption over restrictive compliance measures.

However, the sector remains vulnerable to legal uncertainties. Ongoing cases like SEC v. Ripple Labs and SEC v. Coinbase continue to define the classification of digital assets under securities law. If courts rule that most cryptocurrencies are not securities, it could unlock broader liquidity and diversify investment opportunities, further inflating FinTech valuations Crypto Regulation at a Crossroads: Key Cases in 2025^[4]. Conversely, a narrow interpretation of these laws could reintroduce volatility, as seen in Bitcoin's 7.7% surge following the 90-day tariff pause but its 20% drop after initial tariff announcements Crypto SWOT: Trump’s tariffs have made the stock …^[5].

Antitrust and the Competitive Landscape

The administration's anticipated leniency in antitrust enforcement adds another layer of complexity. While the FTC has pledged to uphold Biden-era Merger Guidelines, the anticipated shift in enforcement priorities could reduce pressure on Big Tech. This development is particularly significant for companies like Meta and Google, which face antitrust lawsuits that could reshape digital advertising ecosystems. A more permissive regulatory stance might allow these firms to consolidate market power, potentially squeezing smaller competitors and altering media revenue models The big 5 for 2025: forces impacting media and tech^[6].

Conclusion: Balancing Innovation and Risk

The current regulatory environment presents a paradox: deregulation fosters innovation but introduces new risks. For investors, the key lies in discerning which sectors will benefit most from reduced compliance costs and which will face operational challenges from fragmented state laws or legal uncertainties. Tech stocks tied to AI infrastructure and FinTech firms leveraging blockchain stand to gain, but media companies must navigate the dual pressures of antitrust scrutiny and AI-driven content disruption.

As the U.S. charts this uncharted regulatory terrain, the interplay between policy and market forces will remain a defining feature of the investment landscape. The challenge for stakeholders is to harness the opportunities of deregulation while mitigating its inherent risks—a task that demands both strategic foresight and regulatory agility.