The dust is settling on the 2024 US presidential election, and one clear winner has emerged: cryptocurrencies. With the orange-pilled Trump administration poised to take office, the crypto industry is bracing for a new era of growth and mainstream adoption. From pro-crypto policies to an influx of crypto-savvy appointees, the stage is set for digital assets to thrive.
Trump’s Crypto Clout
Donald Trump’s crypto credentials are no secret. The former president has been an outspoken advocate for Bitcoin and digital assets, even launching his own DeFi protocol, World Liberty Financial. The official Republican platform is explicitly pro-crypto, and Trump himself has made specific commitments to the industry, such as:
- Freeing Ross Ulbricht, the imprisoned founder of the Silk Road darknet market
- Ending SEC Chair Gary Gensler’s reign
- Allowing Bitcoin miners to operate unimpeded
- Terminating Operation Chokepoint 2.0, which targets crypto businesses
- Ensuring the government takes possession of all seized BTC
A Crypto-Friendly Administration
Beyond Trump himself, the incoming administration is stacked with crypto advocates. Vice President-elect JD Vance owns Bitcoin and has a history of engaging with crypto, even drafting market structure legislation as a senator. Vivek Ramaswamy, the new co-head of the Department of Government Efficiency (DOGE), is a longtime crypto bull. Howard Lutnick, co-chair of Trump’s transition team and CEO of Cantor Fitzgerald, is a mega Bitcoin and stablecoin bull whose firm custodies Tether. Even Elon Musk, an emerging right-wing powerbroker, has dabbled in crypto for years.
Those who suspect Trump is merely paying lip service to crypto must admit he’s surrounded himself with people invested in the industry’s future.
Crypto Lobbyists Flex Their Muscle
The election was also a spectacular success for crypto lobbying. Bloomberg reported that FairShake, the industry’s largest Super PAC, prevailed in all 48 races where it backed a candidate. Coinbase’s Stand With Crypto aggregator states that this cycle elected 273 pro-crypto and 122 anti-crypto representatives.
In key Senate races, crypto money helped tip the scales. In Ohio, the lobby launched an Avalanche of cash to help Republican Bernie Moreno unseat crypto skeptic Sen. Sherrod Brown. In Montana, pro-crypto Republican Tim Sheehy defeated “D”-rated Sen. Jon Tester. The newly elected Senate leaders, John Thune and Tim Scott, have both spoken favorably of crypto.
A Boon for Stablecoins and DeFi
Stablecoin giant Tether emerged as an unexpected winner, despite not openly participating in the election. Co-chair of Trump’s transition team Howard Lutnick, whose firm Cantor Fitzgerald custodies a significant portion of Tether’s treasury portfolio, is a major Tether backer. His close relationship with Trump represents a political lifeline for the besieged stablecoin.
The DeFi sector also looks poised to benefit. Many DeFi tokens resemble a form of pseudo-equity, forcing founders to walk a legal tightrope. With Gensler’s impending departure, the SEC appears set to install a framework treating these tokens as such, requiring basic investor disclosures. This would level the playing field and enable founders to treat tokens more like protocol shares.
Banks Unshackled
For years, US banks have largely been shut out of serving the crypto industry due to regulatory hurdles like the SEC’s SAB121 accounting rule and Operation Chokepoint 2.0. Meanwhile, foreign banks have been feasting on crypto custody, trading, and stablecoin issuance.
This will likely change under Trump. SAB121 is expected to disappear once Gensler resigns. Chokepoint 2.0 will undoubtedly end with Trump appointing a new Comptroller and FDIC chair. Banks will be free to custody crypto and serve crypto firms as they please, leveling the playing field with overseas competitors.
Prediction Markets Proven Prescient
Finally, prediction markets emerged as big winners, having produced exceptionally accurate forecasts. Polymarket was far more bullish on Trump and Republicans than most pollsters, calling races well before traditional experts and media. Stablecoins aside, prediction markets appear to be the first significant crypto-based consumer product success story – a use case that will become a hallmark of political life for years to come.
As the Trump era dawns anew, the crypto industry finds itself on the cusp of a great leap forward. With regulatory shackles cast off and digital asset advocates ascending to the highest levels of government, the stage is set for cryptocurrencies to assume their place in the mainstream of American life. In the coming years, the intersection of politics and blockchain is poised to emerge as the defining story of finance – and quite possibly the future of money itself.
