Donald Trump has won the 2024 US presidential election. Whatever one thinks of this outcome, the result will have major implications for the cryptocurrency industry. Trump promised several things to the crypto-community during his campaign. Among his most popular promises is that he will fire Securities and Exchange Commission chair Gary Gensler on his first day of office. Other promises that attracted the attention of Crypto holders are to establish a United States national Bitcoin reserve and commute the life sentence of Silk Road creator Ross Ulbright, a cause celebre among many crypto supporters in the US.
Trump’s Past Stance on Cryptocurrency
In the past, Donald Trump has not been a vocal supporter of cryptocurrency. During his previous administration, he expressed concerns about Bitcoin and other digital assets, viewing them as risky and potentially destabilizing for traditional financial systems. Trump was particularly wary of the unregulated nature of cryptocurrency, suggesting it could facilitate illicit activities and undermine the dominance of the US dollar. Under Trump’s leadership, federal agencies took a cautious approach to crypto regulation, focusing on monitoring the industry rather than implementing comprehensive policies. Trump’s reservations about crypto likely influenced this approach, leading his administration to lean toward consumer protection rather than supportive measures for digital assets.
This position has famously shifted over this election cycle as Trump embraced his many US crypto supporters.
Firing Gary Gensler From His Position
Trump’s promise to fire Gensler as SEC chairman on his first day in office is one of the most anticipated of his crypto-related positions in the community. Joe Biden, the SEC’s current Chair, appointed Gensler to the position of President in 2021. During his tenure as SEC chair, Gensler presided over an SEC that sued many popular crypto projects and exchanges. The SEC has brought enforcement actions against Coinbase, the largest exchange in North America. They also took action against the decentralized exchange Uniswap and blockchain-based streaming video company Lbry. Web3 video game developers Immutable and MetaMask wallet developers Consensys were also targeted. The SEC claimed in each case that cryptocurrencies were often securities and that developers had to register their coins with the SEC. This interpretation of securities laws has been rejected by many crypto businesses and users, and Trump promised to remove Gensler as a result.
The Rise of Bitcoin’s Price Amid Trump’s 2024 US Election Win
The crypto market experienced a historic response as Trump’s election victory was becoming more and more assured throughout election night. Bitcoin broke past its historical high of $73,000, briefly reaching $75,000 on November 6. After a short bounce back down, it has since traded continuously above that level.
The news was also well received on the institutional side. Bloomberg data shows that BlackRock’s Bitcoin ETF (exchange-traded fund) saw a turnover of more than $1 billion in the first few minutes after Donald Trump’s election win. Many analysts forecast that BTC’s price will keep rising now that Trump, a cryptocurrency-friendly Republican, is slated to start his second term as US president on Jan. 20. Fadi Aboulfa, the head of research for Copper, says that valuation models indicate “a $100,000 Bitcoin will be possible by the time President 47th arrives at the Capitol to attend his inauguration.”
Crypto Stocks Closed On A High Note With Huge Gains After Trump’s 2024 US Election Win
After Donald Trump’s sweeping victory in the election and a new Bitcoin all-time high, US crypto stocks closed their trading day with massive gains. The biggest gain was made on Nov. 6 by the crypto exchange Coinbase Global Inc. (COIN), which was also among the most important donors during the election campaign. According to Google Finance, the company’s stock has gained over 62% this year. Investors seem to be optimistic that Republicans will take control of Congress along with the White House. This would leave little opposition for two crypto-related bills backed by Republicans to become law. With a Republican majority in the Senate, the GOP’s stablecoin framework bill may also be brought back into play. It stalled last July after it passed through the Financial Services Committee. The bill was passed by the House of Representatives in May, but it stalled at the Senate Banking Committee.
Conclusion
In the wake of Donald Trump’s victory in the 2024 presidential election, the crypto market has shown clear signs of optimism, spurred by Trump’s pro-crypto promises and anticipated policy shifts. From his commitment to support Bitcoin mining in the US to his vow to replace current SEC Chair Gary Gensler, Trump’s campaign rhetoric has resonated with many crypto advocates who view his stance as a step toward a more favorable regulatory environment for digital assets.
The market response, including a historic spike in Bitcoin’s price and surging trading volumes in crypto-related stocks and ETFs, suggests that the industry is hopeful for a new era of growth and regulatory openness under Trump’s leadership. However, Trump’s return to office also raises questions about how his administration will balance crypto-friendly policies with national regulatory standards. While the crypto community has much to anticipate, they also face an environment likely marked by both regulatory reforms and renewed momentum in decentralized finance. As we look toward the start of Trump’s term, it is clear that his administration will play a pivotal role in shaping the next chapter for crypto in the United States and worldwide.
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