In the recent election, the crypto industry saw major wins as pro-crypto candidates, including Republican Donald Trump, claimed victory in multiple races. Trump, who has shown support for Bitcoin and promised to make the U.S. a leading hub for cryptocurrency, defeated his Democratic opponent Kamala Harris. Crypto PACs also succeeded in flipping several seats, including a significant win in Ohio, where crypto-friendly Republican Bernie Moreno defeated incumbent Democrat Sherrod Brown, a notable crypto critic.
Trump’s election has energized the crypto community. Bitcoin prices surged to a new high of $75,000 as election results rolled in, and stocks tied to the crypto industry, like Robinhood and MicroStrategy, also saw gains. Enthusiasts are hopeful that the incoming administration will reduce regulatory barriers for crypto companies, creating more space for the industry to thrive.
During his campaign, Trump proposed establishing a federal Bitcoin reserve and committed to bringing more Bitcoin mining operations to the U.S. He also vowed to replace Gary Gensler, the current SEC chair, who has been viewed as a roadblock to crypto innovation. Gensler, a polarizing figure in the industry, has pursued numerous lawsuits against crypto projects, arguing that his regulatory approach protects consumers from fraud. But with a possible SEC leadership change, analysts believe more crypto products, such as ETFs for assets like Solana and XRP, could soon enter the market.
Crypto advocates are also encouraged by Trump’s ties with Elon Musk, a known supporter of Dogecoin. Following Trump’s win, Dogecoin rose 25% on election night, suggesting investor confidence in a crypto-friendly administration. Many in the industry see these relationships as a potential boost for crypto markets and innovation in the U.S.
Crypto PACs, such as Fairshake, invested over $100 million in the 2024 election cycle to support pro-crypto candidates. The industry is pushing for a legislative shift that would transfer regulatory authority from the SEC to the smaller Commodity Futures Trading Commission (CFTC), which they believe would better support crypto growth. In Montana, crypto-backed Republican Tim Sheehy defeated Democrat Jon Tester, adding another pro-crypto voice to Congress.
The 2024 election also highlighted the role of prediction markets, where users could bet on the outcome of the races using crypto. Proponents argue that prediction markets are more accurate than traditional polls since they reflect the stakes of people actively betting on the results. Notably, prediction platforms gave Trump a 62% chance of winning before election day, well ahead of traditional polls. With over $2 billion wagered on prediction markets, these platforms may become more prominent in future elections.
While the Trump administration’s approach to crypto regulation holds promise, crypto’s future remains uncertain. Market volatility can be influenced by global events, and the industry’s reliance on deregulation has previously led to setbacks, as seen with the collapse of FTX. Experts caution that while initial optimism is high, regulatory relief may be slower than expected, which could lead to volatility in the crypto markets.
For now, however, the industry is optimistic. Many believe Trump’s victory marks a turning point, signaling an era where Congress is less hostile towards crypto. Kristin Smith, CEO of the Blockchain Association, expressed optimism, stating, “This is really positive news for all parts of the ecosystem.”
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