On the eve of the US presidential election, Republican candidate Donald Trump made many promises to the crypto industry. Now that he waschosen one big changes may be on the horizon.
As it became clear that Trump had defeated Democratic candidate Kamala Harris for the White House, Bitcoin hit a new all-time high and continued to rise, reaching $76,872 as of November 7, according to CoinGecko.
Speaking to Cryptopolitan, Alice Liu, head of research at CoinMarketCap, said a Trump victory could continue to “shake things up” in the crypto industry.
During his election campaign, Trump positioned himself as an ally of the crypto industry, promising to make the US the “crypto capital of the world” through measures such as no cryptocurrency tax and calling for the creation and storage of Bitcoin on American soil. .
“His plans include dismantling the existing regulatory framework, appointing a Bitcoin and Cryptocurrency Advisory Council to be chaired by the SEC,” Liu said.
“He also discussed reducing regulatory hurdles for the industry, which stands in stark contrast to the Biden administration’s emphasis on strong oversight and consumer protections,” she added.
However, Liu believes that one particular promise could prove to be a huge boon for the crypto industry in the long run.
“Trump’s idea of creating a strategic bitcoin reserve could legitimize bitcoin as a key asset,” she said.
“If successful, the US will be the first major economy to view Bitcoin as a reserve asset that can attract institutional investment and send a strong signal to other countries about the viability of cryptocurrencies.”
US crypto industry policy under Trump
Trump’s second presidential term will not officially begin until January 20, 2025, Inauguration Day.
Jonathan Yachim, head of global policy at cryptocurrency exchange Kraken, told Cryptopolitan that the election results will likely mark a “significant turning point for crypto politics.”
Under the Biden administration, the Securities and Exchange Commission (SEC), through Chairman Gary Gensler, has cracked down on crypto firms.
SEC enforcement actions under Gensler’s leadership reached a 10-year high in 2023, according to a study by consulting firm Cornerstone Research. majority of those involved in cryptocurrency firms.
The agency has yet to release its annual enforcement action report for fiscal year 2024. However, in the notice dated October 21SEC Examination Division released priorities for 2025, including cryptocurrency as an examination priority.
During his campaign, Trump promised to fire Gensler on his first day in office.
“President Trump and his team have made cryptocurrency an important part of their campaign platform. And we have seen many new pro-cryptocurrency members elected to Congress from both parties,“ – said Yachim.
“Our legislators and industry representatives have worked very hard over the past several years to develop nonpartisan legislation that regulates centralized intermediaries rather than a code.“
Mixed situation on crypto markets
Corey Klippsten, CEO of bitcoin platform Swan Bitcoin, told Cryptopolitan that he believes a Trump victory could prove be mixed bag, “with a mixture of pro-business rhetoric and some anti-cryptocurrency sentiment from those who want to protect the dollar status quo.”
Critics of the cryptocurrency have noted it as a potential threat to the dominance of the US dollar in the global economy by reducing other countries’ dependence on the US financial system.
“The Trump administration could create short-term headwinds for Bitcoin by maintaining a hard stance on digital assets, likely mixing them with its views on other disruptive technologies.“ – Klippsten said.
“However, Trump’s lack of regulatory intervention may also service The rise of Bitcoin as an unregulated, decentralized store of value. Ultimately, Bitcoin doesn’t need government approval—it thrives on its independence.“
Easing rules may be introduced cards
Speaking to Cryptopolitan, Greg Magadini, director of derivatives at crypto data firm Amberdata, said the most notable mid-term impact of a Trump presidency could be a loosening of regulations on space builders.
“The release of Ross Ulbricht and the firing of Gary Gensler allows the protocol developers to feel confident that the government is not against them,” he said.
“This is very constructive for L1 chains like Eth and Solana, whose value is derived based on protocols created and used on L1,” Magadini added.
Overall, Magadini believes that “DeFi will be a huge winner in this situation,” with the potential for “easing restrictions on US citizens to use the protocols” in the future.
While Trump has grabbed all the headlines, Magadini is in the background saying there are over 219 pro-crypto candidates and counting. was elected to the House of Representatives and the Senate.
While he’s skeptical that the Bitcoin reserve will materialize, he says the idea of the reserve and the influx of pro-cryptocurrency candidates make the market bullish.
Since the election, the cryptocurrency market has surged across the board, with Bitcoin being the clear standout as it reached new all-time highs.
