The dust is settling on the 2024 U.S. election, and one industry emerged as a clear winner: cryptocurrency. With pro-crypto candidates securing key positions in the new administration and Congress, the stage is set for a new era of regulatory clarity and mainstream adoption. According to close sources, the industry is poised for significant growth and transformation in the coming years.
The Trump Administration’s Pro-Crypto Stance
President-elect Donald Trump has been an outspoken advocate for cryptocurrency, even launching his own DeFi protocol, World Liberty Financial. The official Republican platform openly embraces crypto, and Trump himself has made specific commitments to the industry, such as pardoning Ross Ulbricht, ousting SEC Chair Gary Gensler, allowing Bitcoin mining, ending Operation Choke Point 2.0, and pledging to have the government hold all confiscated BTC.
Trump is surrounding himself with a team of crypto enthusiasts. Vice President-elect J.D. Vance owns Bitcoin and has a long history with crypto. Vivek Ramaswamy, the new co-head of the Department of Government Efficiency (DOGE), has been a crypto bull for some time. Howard Lutnick, the co-chair of Trump’s transition team, is a mega Bitcoin and stablecoin bull. Even Elon Musk, who is becoming a sort of right-wing George Soros, has been involved in crypto for years.
Crypto’s Election Victories
The election was also a stunning success for crypto-focused PACs and advocacy groups. FairShake, the industry’s largest Super PAC, won in 48 out of 48 races where it backed a candidate. Coinbase’s Stand With Crypto aggregator claims 273 pro-crypto and 122 anti-crypto candidates were elected this cycle.
In the Senate, crypto helped tip the balance in key races. Industry groups poured money into supporting Republican J.D. Vance in Ohio, helping him unseat Democrat Sherrod Brown, who chaired the Senate Banking Committee and was a staunch crypto critic. In Montana, Republican Tim Sheehy (rated “A” by Stand with Crypto) defeated Senator Jon Tester (rated “D” by Stand with Crypto).
Legislative Priorities and Regulatory Changes
With Republicans retaking the Senate and holding the House, we can expect a stablecoin bill to be a top priority in the new year, followed by a markets structure bill. Trump could create a Strategic Bitcoin Reserve by executive order, or Congress could establish a new federal entity for this purpose.
The election also signals major changes for the DeFi space. Many DeFi tokens resemble a form of pseudo-equity, and they should be treated as such. With SEC Chair Gensler likely on his way out, the SEC looks poised to establish a regulatory framework treating these tokens as pseudo-equity, requiring light registration for investors. This will level the playing field and make the DeFi space fairer for investors.
Opportunities for Banks and Stablecoins
Banks have long sought to enter the crypto space but have been largely walled off from serving the industry. SEC rule SAB121, warnings from the Fed about stablecoins, and Operation Choke Point 2.0 have made it difficult for banks to offer crypto services. Meanwhile, foreign banks have been feasting on crypto custody, exchange, stablecoin/FX brokerage, and even issuing their own stablecoins.
This is likely to change under Trump. SAB121 will be gone once Trump forces out SEC Chair Gensler. Choke Point 2.0 will undoubtedly end as Trump appoints a new Comptroller and FDIC head. Banks will be free to serve crypto at their discretion.
Tether, in particular, emerged as a big winner from the election. The $125 billion stablecoin faces regulatory and enforcement actions as its biggest threat, and the DOJ is reportedly investigating them again. But Tether’s close relationship with Howard Lutnick, the CEO of Cantor Fitzgerald and co-chair of Trump’s transition team, provides significant political cover for the stablecoin.
The Rise of Prediction Markets
Finally, prediction markets had a huge win from the election, showing exceptionally strong performance. Polymarket was far more bullish on Trump’s prospects (and Republicans overall) than most pollsters, and called a number of races well before experts and the MSM. Prediction markets are the first meaningful breakthrough consumer product built on crypto – a real use case, at last.
Prediction markets truly outperform polls and the press, and they will be a defining feature of political life for years to come.
– According to a close source familiar with the crypto industry
The 2024 U.S. election marked a turning point for the crypto industry, with pro-crypto candidates securing key positions and setting the stage for a new era of growth and mainstream adoption. As regulatory clarity emerges and institutional barriers fall, the crypto space is poised for transformative changes in the coming years. The future looks bright for crypto in America.
