Sophia’s Thoughts On Trump’s Win
Donald Trump won the U.S. presidential election last week and the crypto tide has turned. What does Trump’s presidency mean for crypto?
These are Sophia's Thoughts:
Donald Trump’s election win marks a pivotal moment for crypto, with Bitcoin surging to an all-time high of USD 89,900 as investors anticipate a more favorable regulatory landscape.
The election of Trump and numerous pro-crypto congressional candidates signals a shift, with electees likely to support reduced regulatory barriers and greater innovation in the crypto sector.
With Trump’s proposed policies, including a national Bitcoin reserve and opposition to the U.S. CBDC, market enthusiasm is high. Some investors remain cautious about ethical concerns tied to his financial interests and potential regulatory delays.
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🚀 Last week’s market performance
The market absolutely rocketed this week following Trump’s win, gaining 34.4%. Bitcoin (BTC) followed the market, closing up 30.8%. The best performing coin of the week was Cronos (CRO), which pumped an astounding 190% largely in part to their new roadmap announced on November 6th. The worst performing coin this week was Aragon (ANT) which drastically underperformed relative to the market, falling 43.5%.
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🔍 What happened to crypto last week?
On November 5, 2024, Donald Trump won the U.S. presidency marking a significant turning point in the political and crypto landscape. Known for his pro-crypto stance, Trump's victory was accompanied by palpable gains across the cryptocurrency and broader market. Bitcoin broke through previous all-time-highs, surging over USD 20,000 to a record USD 89,900 on November 11th.
The election also saw substantial wins for crypto-friendly candidates in both the House and Senate, marking a historic shift for the cryptocurrency industry in U.S. politics. Among these victories was the Ohio Senate race, where pro-crypto Republican businessman Bernie Moreno unseated Democratic incumbent Sherrod Brown, flipping the seat to red for the first time in nearly 18 years. Similar victories occurred nationwide, with pro-crypto candidates prevailing in West Virginia, Indiana, and Texas.
In total, the crypto industry reportedly spent over USD 238 million to back more than 250 pro-crypto congressional candidates. This financial support helped secure wins across critical states, reinforcing a pro-crypto Congress that aligns with President-elect Trump’s agenda. Trump's own campaign benefited from significant industry donations, including contributions from prominent crypto investors and venture capitalists like Elon Musk, Marc Andreessen, Ben Horowitz, and the Winklevoss twins.
These victories are widely viewed as a mandate for a new era in cryptocurrency policy, marked by a more supportive regulatory framework and policies that could make the U.S. a global leader in digital assets. As Coinbase’s Chief Policy Officer Faryar Shirzad remarked, "Across the ballot and on both sides of the aisle, crypto won this election," emphasizing the industry’s growing political power and influence.
⚒️ Immediate regulatory impact
Donald Trump's victory, coupled with the election of pro-crypto candidates in Congress, has led to questions about what this administration means for the ongoing disputes between the SEC and crypto industry. Throughout his campaign, Trump expressed strong support for cryptocurrencies and pledged to reduce regulatory barriers to foster innovation in the sector. In immediate response to Trump's win, crypto products across the board including Bitcoin, Microstrategy, and Coinbase prices surged to record highs.
The election results are anticipated to bring swift changes to the regulatory environment for cryptocurrencies. Analysts anticipate that SEC Chair Gary Gensler may resign before the inauguration, leading to a leadership transition that would favor a more crypto-friendly regulatory environment. This shift could accelerate the resolution of ongoing SEC cases against cryptocurrency firms. Former head of the SEC’s Office of Internet Enforcement John Reed Stark believes that the tide against crypto has turned: “Does this mean that the SEC’s war on crypto is over? I would say absolutely with a resounding yes that the SEC is not going to be bringing many cases against cryptoverse participants at all in the coming years.”
For instance, the longstanding lawsuit between the SEC and Ripple Labs over the classification of XRP may reach a settlement, potentially concluding with Ripple paying the previously adjudicated USD 125 million penalty. Additionally, the new administration may prioritize the approval of cryptocurrency exchange-traded funds (ETFs), including those for tokens like Solana and XRP.
💥 Trump's plan
President-elect Donald Trump’s return to office brings with it a suite of crypto-friendly policies, fueling enthusiasm across the digital asset sector. Trump's proposed initiatives, which include establishing a national Bitcoin reserve, promoting Bitcoin mining within the U.S., and blocking the development of a central bank digital currency (CBDC), represent a departure from previous administrations’ approaches. These promises signal a pivot aimed at positioning the U.S. as a global leader in cryptocurrency innovation. Additionally, Trump’s pledge to reassign crypto regulation away from the SEC toward more supportive agencies highlights his commitment to fostering a growth-oriented regulatory environment.
While market and coin sentiment are very positive, Trump’s policies also raise some ethical concerns that could influence market stability. Notably, his involvement with World Liberty Financial, a decentralized finance (DeFi) venture, has drawn scrutiny over potential conflicts of interest. As both president and a stakeholder, Trump’s decisions could face challenges in terms of impartiality, sparking conversation within the crypto community about transparency and regulation.
The potential for a “crypto bull run” appears strong under Trump’s pro-crypto agenda. If Trump's administration struggles to implement promised reforms or faces backlash over perceived conflicts, the euphoria currently driving market sentiment could give way to volatility. As the industry navigates this new political landscape, a balance between optimism and caution will likely shape investor strategies over the coming months.
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