Traders Anticipate Pro-Crypto Actions Under Trump’s Presidency
Here’s the deal: Trump is viewed as a favorable candidate for a more crypto-friendly regulatory environment.
Investor reactions indicate optimism regarding this environment over the next four years, especially concerning bitcoin and crypto stocks like COIN.
Trump's primary task upon taking office involves potentially ousting SEC Chair Gary Gensler. If successful, Trump's appointee may adopt a more lenient approach toward the crypto industry, focusing on regulatory clarity rather than enforcement actions. Notably, Trump has launched his own crypto trading platform, according to Pillsbury partner David Oliwenstein.
Empire co-host Jason Yanowitz stated that there is a necessity for a change in SEC leadership. Speculation suggests Robinhood's Dan Gallagher could be considered for Gensler's replacement.
Oliwenstein highlighted the importance of the SEC's director of enforcement role. The former director, Gubir Grewal, left in October, and Acting Director Sanjay Wadhwa may continue aggressive enforcement against the crypto industry. Should Wadhwa be permanently appointed, significant enforcement actions can be expected, though this might change under a Trump presidency.
Beyond the SEC, Election Night marked a Republican Senate win, with pro-crypto candidates gaining seats due to support from crypto super PACs like Fairshake.
According to Texas Blockchain Council president Lee Bratcher, the crypto industry's political influence suggests that legislation on stablecoins and market structure may pass within two years, regardless of administration. Tax treatment for crypto remains a critical issue, with a de minimis exemption needed for the U.S. to become a global crypto leader. This represents a pivotal moment as regulators show increased willingness to collaborate on digital asset policy and innovation.