Crypto Industry Looks to Benefit from Possible Trump Re-election

As the 2024 U.S. presidential election approaches, the crypto world is closely watching the developments surrounding former President Donald Trump. Trump's potential return to the White House could significantly influence the digital asset landscape, particularly benefiting U.S.-based Bitcoin miners and crypto companies.

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Recent discussions and political shifts have heightened speculation about how Trump's presidency might reshape the regulatory environment and market dynamics for cryptocurrencies. While foreign competitors could face challenges, American firms could see opportunities for growth and reform. The growing endorsement of crypto by Trump and his administration's stance on digital assets are key factors that could drive these changes.

In light of this, let's examine how the crypto sector might be affected under a second Trump administration.

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Gains for Bitcoin Miners and US Crypto Firms

Bitcoin miners and cryptocurrency companies in the United States, which have faced obstacles in their efforts to go public, could see significant opportunities if Donald Trump wins a second term. Conversely, foreign firms might encounter challenges. This perspective is gaining traction as Trump’s support for cryptocurrencies becomes more apparent and his chances of re-election increase. Recently, Trump announced his support for Vice President Kamala Harris to be the Democratic nominee for President.

Boost for Bitcoin Miners

Since Biden's weak debate performance in June and the attempted assassination on Trump, Bitcoin's price has jumped nearly 10%. Following a meeting with Bitcoin miners in June, Trump posted on Truth Social, stating that Bitcoin mining might be "our last line of defense against a CBDC," referring to a central bank digital currency. He emphasized the importance of producing Bitcoin domestically.

As a result, shares of major public firms like Marathon Digital and Riot Platforms have risen by around 30%. Cipher Mining’s stock has surged nearly 50%, with the company exploring a sale after receiving takeover interest.

Revival of IPO Plans

Despite the crypto market crash in 2022, some companies are once again planning initial public offerings (IPOs). Circle, the issuer of the $33 billion stablecoin USDC, filed for an IPO in January. Northern Data, a company that transitioned from crypto mining to AI computing, is considering a US listing valued at up to $16 billion. Kraken, the second-largest US-based crypto exchange, is also gearing up for an IPO.

The US Securities and Exchange Commission (SEC) has posed significant challenges by listing several tokens as unregistered securities. Trump is expected to appoint a more crypto-friendly SEC chair.

Digital Exchanges and Banking

A second Trump term could lead to increased acceptance of crypto firms by the banking system. Digital-asset trading platforms have faced difficulties finding banks to facilitate fiat-to-crypto conversions. The bankruptcies of crypto-friendly banks like Silvergate and Signature have further restricted access to banking services.

Challenges for Offshore Competitors

While many in the industry would welcome a Trump victory, some companies might face difficulties. Offshore crypto firms, particularly trading platforms like Binance, OKX, and Deribit, have gained market share as stringent US regulations prevent domestic rivals from offering popular services. With more crypto-friendly regulators and a clearer legal framework, US companies could introduce services with greater leverage and options.

Stance on Central Bank Digital Currencies

Trump has taken a strong stance against central bank digital currencies (CBDCs), which many in the crypto community view as a means for increased government surveillance. He has pledged to prevent the digitization of the dollar, aligning with the views of many crypto supporters.

Also Read: Trump-Themed MAGA Memecoin Set for Potential Rebound Ahead of Bitcoin 2024 Conference