With Donald Trump preparing to run for a second term in the White House, the 2024 US presidential election brought about significant changes in the outlook for crypto policy.
Crypto supporters, like Coinbase CEO Brian Armstrong, have voiced hope that the changes might help the digital assets sector in the wake of Trump’s victory and the Republican Party’s capture of the Senate, with a majority in the House of Representatives also within reach.
In reaction to the election results, the price of Bitcoin (BTC) spiked up to over $75,000 on November 6 amid expectations for changes at the Securities and Exchange Commission, legislative chances, and possible regulatory clarification.
Trump’s generally positive views on cryptocurrency and the Republican Party’s recent Senate majority mean that the US may see more favorable regulations, particularly if Trump fulfills his pledge to succeed SEC Chair Gary Gensler.
Move in favor of crypto
The election of Republican Bernie Moreno in Ohio, who defeated incumbent Senator Sherrod Brown, a strong opponent of cryptocurrency, is one of several significant contests that demonstrate the growing pro-crypto movement.
Armstrong’s Nov. 6 X post implied that “Crypto supporting Bernie Moreno was the key factor in his victory over Sherrod Brown,” which underscores Moreno’s triumph and a change in posture toward crypto legislation.
Clarity of regulations
Following the election results, Armstrong wrote about the industry’s ramifications and claimed that voters’ disenchantment with excessive regulation is reflected in their desire for economic independence.
The CEO of Coinbase declared, “With limited government, rule of law, meritocracy, fiscal restraint, and respect for the free market (not government), America will pursue a path toward economic freedom, which is our source of strength.”
Armstrong’s opinions as the CEO of a centralized cryptocurrency exchange also point to certain advantages for CEXs, such as less governmental supervision and more operational flexibility.
Encourage the SEC to analyze
Coinbase’s chief legal officer Paul Grewal reaffirmed Armstrong’s position on November 6 and called on the SEC to “stop suing crypto” and start “rulemaking now.”
Trump promised to fire Gensler on his first day in office as part of his pledge to move toward national unity and put a stop to what he described as the Biden-Harris administration’s “anti-crypto crusade.”
Since being nominated by President Joe Biden, Gensler has been in charge of SEC enforcement operations against Coinbase, Consensys, the developer of the MetaMask wallet, and Uniswap, a decentralized exchange.
The term of the SEC chair, which is scheduled to expire in April 2025, may end abruptly and early if Trump keeps his pledge to fire Gensler on the first day.
