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Trump’s approach to crypto regulation is perceived as part of his “America First” economic agenda, focusing on domestic growth and technological leadership. While his promises have generated enthusiasm in the digital asset space, they also underscore a strategic oversight role aimed at ensuring the industry aligns with U.S. interests. His administration’s approach to crypto could set a new regulatory standard that balances growth with safeguards, positioning the U.S. as a global leader in digital finance and blockchain technology.

Donald Trump Wins 2024 US Presidential Election

Donald Trump’s victory in the 2024 U.S. presidential election marks a historic return to the White House, making him one of the few presidents to achieve a nonconsecutive second term. Trump won a decisive victory by securing the majority of electoral votes, building on his 2020 performance and gaining ground in both traditionally Republican and Democratic areas. He successfully captured key swing states like Wisconsin, Pennsylvania, and Georgia, surpassing the required 270 Electoral College votes. His campaign focused on core themes of economic revitalization, border security, and national sovereignty, appealing to voters frustrated with inflation and economic uncertainty.

In a political landscape marked by division, Trump’s appeal resonated with a broad base of voters seeking change, particularly in rural and working-class areas. Trump made gains among demographic groups that had traditionally supported Democrats, including a portion of Black and Latino voters. His messaging on issues like immigration, tariffs, and conservative social values helped secure support from these groups, leading to his significant advantage in battleground states. This outcome reflects shifting voter priorities and dissatisfaction with the current administration, despite Trump’s controversial past and legal challenges.

The election’s implications extend beyond the presidency, with Republicans also taking control of the Senate, which will facilitate Trump’s legislative agenda. The House of Representatives, however, remains uncertain, with ongoing vote counts in competitive districts across the country. If Republicans secure a majority in both chambers, it will likely accelerate Trump’s proposed policies, which include stricter immigration measures, substantial economic changes, and a focus on domestic manufacturing. The GOP’s expanded influence may also impact judicial appointments and regulatory reforms, further solidifying Trump’s policy goals.

On the global stage, world leaders have responded with a mix of congratulations and cautious optimism, recognizing Trump’s return as a potential shift in U.S. foreign policy. Allies and adversaries alike anticipate changes in America’s approach to international relations, particularly concerning trade and defence. Leaders from Israel, the United Kingdom, and Japan expressed eagerness to strengthen ties, while others, like China, signalled a readiness to continue navigating a complex relationship. Trump’s return to power signals a renewed focus on “America First” policies, promising a profound impact on both domestic and international affairs in the years to come.

How Will a Trump Victory Impact Digital Assets?

During his 2024 presidential campaign, Donald Trump positioned himself as a pro-cryptocurrency candidate, advocating for lighter regulations and increased government support for the digital asset sector. He pledged to establish a “national strategic crypto stockpile” that would retain Bitcoin seized by the government, rather than liquidating it as in previous administrations. Additionally, Trump expressed intentions to replace Securities and Exchange Commission (SEC) Chair Gary Gensler, known for his stringent stance on crypto regulation, with a more industry-sympathetic figure. Trump proposed a “Bitcoin and Crypto Presidential Advisory Council” aimed at providing clearer and more favourable regulatory guidelines, which he argued would bolster the U.S. as a global leader in cryptocurrency and blockchain technology.

Donald Trump also promised to pardon Ross Ulbricht, the creator of the Silk Road, a notorious online black market that operated on the dark web and facilitated the sale of illegal goods, including drugs, through cryptocurrency transactions. Ulbricht was convicted in 2015 on charges related to his operation of the site, receiving a double life sentence without parole. Trump argued that Ulbricht’s punishment was overly harsh and disproportionate, noting his belief that the justice system had unfairly targeted Ulbricht as an example. The pledge resonated with some in the cryptocurrency community who viewed the case as emblematic of government overreach in early crypto enforcement. Trump’s stance signalled a potential shift in how his administration might view past high-profile crypto-related cases, aiming to address what he described as excessive punishments for non-violent digital offences.

Alongside his campaign, Trump introduced his own crypto project, World Liberty Financial, a platform aiming to enable digital currency transactions, including lending and borrowing, within the crypto space. Launched with the WLFI token, the platform has been marketed primarily outside the U.S., largely to circumvent domestic regulatory challenges. Trump’s family members, identified as “Web3 ambassadors” in the venture, stand to benefit from the project’s revenue. However, the initial fundraising goal was scaled back significantly following limited investor interest, underscoring both the challenges and speculative nature of the project.

Trump’s potential influence over the crypto industry as president has sparked speculation within the digital asset community. His regulatory promises, if enacted, could result in a more permissive environment, possibly easing some of the pressures the industry has faced under recent SEC crackdowns. By advocating for a “light touch” approach to regulation and seeking new leadership at the SEC, Trump’s administration might promote broader adoption and investment in digital assets. However, Trump’s proposed advisory council and emphasis on domestic Bitcoin mining signal that the sector would still face strategic oversight, possibly aimed at ensuring the industry aligns with U.S. interests.

The cryptocurrency market responded to Trump’s election win with significant enthusiasm. Bitcoin soared to record highs, surpassing $75,000, driven by trader optimism around Trump’s perceived crypto-friendly stance. Other digital assets, including Ethereum, also rallied, along with crypto-related stocks such as Coinbase and MicroStrategy. Analysts suggest that Trump’s administration could provide a more favourable landscape for the industry, catalysing further growth in digital assets and crypto markets. However, experts continue to advise caution, noting the volatility inherent in the sector and the uncertain long-term impact of regulatory changes.

Trump’s Stance on Crypto was Heavily Favoured by Crypto Insiders

Donald Trump’s 2024 campaign resonated strongly within the cryptocurrency industry, earning him significant support from crypto enthusiasts and those advocating for a regulatory environment more favourable to digital assets. Trump’s promises to make the U.S. a leader in cryptocurrency and blockchain technology, largely through easing regulations, aligned with the industry’s desire for a more stable regulatory framework. His commitment to stimulating growth and innovation by “sane” regulation reforms attracted the attention of both individual crypto users and major blockchain firms, who have long argued that overly restrictive measures stifle innovation and drive business offshore. For many, Trump’s proposals represented a turning point, offering a vision where the U.S. could reclaim a central role in the evolving global crypto environment.

Trump’s plans for reform included promises to replace the current SEC chair, Gary Gensler, who had led the policy of pursuing aggressive regulatory actions against crypto firms. This stance resonated with many in the industry who viewed Gensler’s approach as overly punitive and lacking clarity. Trump suggested that regulatory bodies should be led by individuals with a favourable outlook toward crypto, signalling a potential end to what some viewed as excessive oversight, and “regulation through enforcement” policies which have been extremely unpopular. His platform proposed creating a “crypto presidential advisory council” staffed by industry advocates rather than sceptics, which would help shape a regulatory structure that balances consumer protections with business freedom. This commitment to a friendlier regulatory environment was seen as a chance to improve transparency and reduce compliance costs, creating a more predictable ecosystem for both established companies and startups.

Beyond easing regulatory pressures, Trump’s promise to develop a strategic “national Bitcoin reserve” emphasised his vision of positioning the U.S. as a crypto leader. By advocating for the retention of government-held bitcoin and other cryptocurrencies, he signalled a proactive approach that contrasted sharply with previous administrations’ limited crypto engagement. His pledge aimed to stabilise crypto markets and demonstrate confidence in digital assets as part of the national strategy, with the potential to attract substantial capital and talent to the U.S. crypto and blockchain sectors. For an industry often characterised by volatility, Trump’s vision provided a framework for establishing the U.S. as a trusted global hub for blockchain technology, attracting talent and investment.

The market’s reaction so far to Trump’s victory have reinforced the industry’s enthusiasm for his crypto-friendly stance, with assets like bitcoin reaching record highs amid optimism for more supportive policies. Major crypto exchanges and blockchain companies also saw an uptick in their stock prices, reflecting investor expectations of a revitalised U.S. crypto market. The prospect of Trump’s deregulation and innovation-focused policies gave rise to optimism that the U.S. could better compete with other crypto-friendly jurisdictions, potentially reversing years of regulatory uncertainty. Many in the crypto community see Trump’s leadership as a chance for the U.S. to recapture its edge in blockchain and digital finance, solidifying its position as a pioneering force in the global crypto landscape.