The 2024 U.S. presidential election has delivered a resounding victory for Donald Trump and the Republican Party, granting them control of the White House, Senate, and House. This sweeping win has the crypto industry buzzing with anticipation, as many believe it will pave the way for more favorable crypto legislation and a potentially softer regulatory approach. However, the only tangible crypto-related action from the President-elect so far has been the sale of t-shirts featuring the famous DOGE meme alongside his face.
The Power of Crypto PACs
One of the key players in the election was the crypto-focused PAC, Fairshake, which poured an astounding $40 million into the Ohio Senate race backing Republican candidate Bernie Moreno against incumbent Democrat Sherrod Brown. While Brown outperformed his party’s presidential candidate Kamala Harris, he ultimately lost his seat amidst the GOP wave.
Fairshake’s influence extended far beyond Ohio, with over 50 of its backed candidates emerging victorious in their races. This impressive track record underscores the growing power of crypto money in the post-Citizens United political landscape.
Increased Likelihood of Crypto Legislation
With Republicans now firmly in control of both chambers of Congress and the executive branch, the prospects for crypto-friendly legislation have significantly improved. Industry insiders are eagerly awaiting the introduction of bills like the Financial Innovation and Technology for the 21st Century Act (FIT21), a revamped stablecoin bill, or even a proposal for a strategic Bitcoin reserve.
“This is the time to get the policy done. We’re really excited,” said Kristin Smith, CEO of the Blockchain Association, a prominent crypto lobbying group.
While the exact shape of future legislation remains uncertain, crypto advocacy organizations are working diligently to coordinate their efforts and present a united front to lawmakers.
Regulatory Appointments in Limbo
Despite the optimism surrounding potential legislative action, there is still considerable uncertainty regarding key regulatory appointments at the Securities and Exchange Commission (SEC), the Treasury Department, and the Commodity Futures Trading Commission (CFTC). These agencies wield significant influence over the crypto industry, and their leadership will play a crucial role in shaping future policies.
President-elect Trump has announced several Cabinet nominees, including controversial picks like Representative Matt Gaetz for Attorney General and Robert F. Kennedy Jr. for Health and Human Services Secretary. However, he has yet to name his choices for the top financial regulator positions.
One notable appointment is former SEC Chair Jay Clayton, who will head the U.S. Attorney’s Office for the Southern District of New York. Clayton initiated many of the aggressive crypto enforcement actions continued by his successor, Gary Gensler. His new role overseeing the prosecution of high-profile crypto cases, such as that of former FTX CEO Sam Bankman-Fried, has raised eyebrows in the industry.
Regulatory Uncertainty Persists
A change in SEC leadership does not necessarily mean that ongoing cases against major crypto exchanges like Coinbase, Kraken, and Binance will be immediately dismissed. According to former SEC attorneys and staff, there are many potential outcomes, but a quick resolution is far from guaranteed.
“I don’t think it’s a guarantee that [the cases] will be settled or settled quickly,” cautioned Kristin Smith of the Blockchain Association.
Similarly, the Treasury Department’s approach to crypto will be influenced not only by the Treasury Secretary but also by the Undersecretary for Terrorism and Financial Intelligence. Under the previous Trump administration, this position was held by Steven Mnuchin, who proposed controversial wallet regulations and pushed for stricter global standards through the Financial Action Task Force (FATF).
If Congress does pass legislation granting the CFTC primary authority over certain digital assets, the agency’s leadership will play a pivotal role in implementing the new regulatory framework.
The DOGE of War?
Amidst all the speculation about the future of crypto regulation, the only concrete action taken by the Trump team since the election has been the sale of merchandise featuring the Shiba Inu dog from the DOGE meme. The t-shirts, which also display the faces of Trump and Elon Musk, have left many in the crypto community scratching their heads.
While some view the move as a lighthearted nod to the crypto world, others question whether it is a genuine signal of support or merely a savvy marketing ploy. Regardless, the crypto industry remains cautiously optimistic about the potential for positive change under a second Trump administration.
As the dust settles on the 2024 election, all eyes will be on the President-elect to see how his campaign promises of making the U.S. “the crypto capital of the world” will translate into actual policy. With the stakes higher than ever, the crypto community stands ready to engage with the new administration and shape the future of digital assets in America.
