With Donald Trump now confirmed as the next U.S. President, cryptocurrency advocates are optimistic that his administration will usher in a more favorable environment for digital assets.
Trump’s campaign promises to support Bitcoin, clarify regulatory guidelines, and even launch a DeFi protocol have raised expectations across the industry. As a result, Bitcoin surged nearly 10%, hitting an all-time high, while Dogecoin, a favorite of Elon Musk, rose by 25%, reflecting the market’s anticipation of a more crypto-friendly White House.
Crypto leaders react to Trump’s victory
Following Trump’s election win over Vice President Kamala Harris, prominent crypto leaders voiced their hopes for constructive regulatory changes. Paul Grewal, Chief Legal Officer at Coinbase, pointed to the election results as evidence that Americans want a new direction on multiple fronts, including cryptocurrency. Grewal argued that the SEC should pivot from legal battles with crypto firms to open dialogue, calling for the commission to begin crafting new regulations without delay. He hinted that this shift in leadership might also influence some Supreme Court Justices to consider retirement.
Brian Armstrong, CEO of Coinbase, welcomed what he called “America’s most pro-crypto Congress ever.” Armstrong highlighted the election of over 219 pro-crypto candidates to the House and Senate, emphasizing that support for digital assets has become a bipartisan issue. He underscored that Americans are increasingly invested in the future of crypto and want clear regulatory guidelines to foster growth and innovation within the industry.
Ripple CEO Brad Garlinghouse also weighed in, taking to X (formerly Twitter) to declare that the influence of the “crypto voter” is here to stay. His statement reflects a belief that the growing base of pro-crypto constituents will continue to play a significant role in shaping U.S. policy.
Trump’s pro-crypto vision
Trump’s intentions for the crypto industry were evident at the Bitcoin 2024 conference, where he promised to remove SEC Chair Gary Gensler. Gensler’s enforcement actions against major crypto firms, including Coinbase, Kraken, and Ripple Labs, have frustrated industry leaders. Trump also proposed creating a Bitcoin reserve to back the Federal Reserve, which would signify a substantial shift in the U.S. financial system’s approach to digital assets.
Crypto executives are optimistic that Trump will follow his promises to reshape the regulatory landscape. The administration could ease regulatory pressure by replacing Gensler, enabling companies to operate more confidently and fostering innovation in the space.
Market reaction and Bitcoin’s rally
Bitcoin’s recent rally underscores the market’s confidence in a pro-crypto administration. This week, the cryptocurrency surged nearly 10%, supported by significant inflows into Bitcoin ETFs. BlackRock’s IBIT fund alone saw an inflow exceeding $2.4 billion, indicating robust investor interest. When writing, Bitcoin trades at around $73,233, reflecting optimism that Trump’s policies could lead to a more stable and supportive regulatory environment for digital assets.
With Trump’s pro-crypto stance and promises for reform, industry insiders anticipate a transformative period for cryptocurrency in the U.S. If his administration delivers on regulatory clarity, it could drive greater adoption and investment, positioning the U.S. as a leader in the global crypto landscape.