Heading into the final weeks of the 2024 US Presidential election the consensus across most major news networks was that the race was close, but it was Kamala Harris and the Democrats who held the clear advantage. As election Tuesday inched closer however, that previously clear Democrat advantage evaporated, and the election was as much of a toss-up as we have seen in the 21st century. Surprisingly to many people, Donald Trump emerged victorious by the early morning hours of Wednesday and within no time it was clear to see that proponents of cryptocurrency regulation in the United States were celebrating this as a major victory.
In the days since Trump’s victory was made official, people from all walks of life are flocking to crypto like we have not seen in years. Whether it be Bitcoin, Ethereum, Doge, or any of the hundreds of other cryptos, there is a renewed interest in cryptocurrencies thanks to the results of the 2024 Presidential Election.
What a Trump Presidency (and Republican Majority) Means for Crypto
Being that the election results are not even a week old, jumping to any major conclusions about the future of crypto regulation in the US would be premature, but that is exactly what appears to be happening. Crypto markets across the board are on the upswing with buying interest seeming to grow by
A Step Towards Real Regulation
There are several reasons why Trump’s victory is being heralded as an objective win for crypto in the United States. One of the biggest reasons is due to Trump’s ‘crypto flip’ that we reported on earlier this year. When Donald Trump previously held office from 2016-2020, he was quick to dismiss the validity of cryptocurrencies and thought of them as more of a ‘scam’ than anything else. Since 2020 though, the President-elect has had a gradual change of heart culminating in the news this election season that he had the backing of many major crypto proponents, including the notorious Winklevoss Twins. Seeing as the crypto industry got behind Trump’s bid for the Presidency, it is no wonder that his victory has ushered in the belief that a real framework for the governance of cryptocurrencies in the US may soon be a reality.
With that said, the Trump team has not gotten into the specifics of what crypto regulation in the United States will look like nor how it will come to fruition, so there is still a lot of work that needs to be done. Part of that work will have to go through the House and Senate, but another major influence on future crypto regulations is who Donald Trump appoints to key cabinet positions. Trump has already made it clear that he is going to fire SEC Chair Gary Gensler as soon as he is able. If he picks a pro-crypto replacement for Gensler, that could pave the way for major changes to the US crypto regulatory landscape. While that is just one example, it serves to prove just how influential cabinet appointees can be.
The Power of a Republican-Led Senate
This year’s election was a major Republican victory not only because Donald Trump regained the Presidency, but also because the US Senate is once again home to a Republican majority. This is possibly even bigger news than Trump’s victory because any crypto regulations that are created will ultimately need to run through the Senate before they reach the President’s desk.
With Trump in the Oval Office and Republicans dominating the Senate, the overarching—if premature—belief is that cementing crypto regulations into law will be much more easily accomplished than if the Democrats were in charge. If the Senate was still controlled by Democrats, any potential crypto regulation could be delayed for prolonged periods of time simply due to the partisan nature of politics nowadays. In that world, Democrats could shoot down prospective bills not due to their lack of merit, but simply due to spite and pettiness. Now, the hope turned expectation is that a Republican-led government will finally help the US crypto landscape achieve a sense of clarity that has been missing for as long as crypto has existed.
There is still a lot of work to be done and Donald Trump being elected President does not materially change anything yet, but the prevailing belief is that Trump and his Republican Senate are the right folks for the job.