The potential for a second Donald Trump presidency has the crypto industry on edge, as the former president has made promises to end President Joe Biden’s “crusade against crypto.” Trump’s rising odds of winning the U.S. elections have sparked concerns among foreign crypto exchanges like Binance, OKX, and Deribit. The possibility of a more crypto-friendly regulatory environment under a Trump administration could lead to increased market share for U.S. peers, leaving overseas firms at a disadvantage.
In the event of a second Trump presidency, challenges may arise for Bitmain, the largest manufacturer of Bitcoin mining machines. U.S.-listed Bitcoin miners currently rely on mining rigs from the Chinese conglomerate, but the emergence of U.S. rivals like Block and Auradine could pose a threat to Bitmain’s dominance. With a potential shift towards more U.S.-based mining equipment providers, Bitmain may face increased competition in the market.
Market participants and observers believe that nearly every U.S. crypto firm stands to benefit from a second Trump presidency. Jefferies analysts have noted that Trump’s “overt support” for Bitcoin and crypto could lead to gains for crypto stocks. Christian Catalini, founder of MIT Cryptoeconomics Lab, expressed optimism about the new regulatory landscape, stating that most U.S. firms could thrive under the new rules.
Under President Biden and Gary Gensler’s leadership of the U.S. Securities and Exchange Commission (SEC), crypto firms have faced challenges in pursuing Initial Public Offerings (IPOs). Companies like Circle and Kraken have encountered obstacles in their plans to go public. However, under a potential Trump presidency, these firms may see a more favorable environment for listing, as the former president is expected to appoint a more crypto-friendly SEC chairman.
Crypto exchanges, which have grappled with banking challenges due to tightening regulations, may find relief under a second Trump administration. The easing of regulations could lead to an expansion of banking options for crypto exchanges, providing them with greater flexibility in conducting their operations. Trump’s pledge to resist the issuance of a digital dollar is viewed positively by the crypto industry, as it sees central bank digital currencies (CBDCs) as a threat to financial privacy.
As of 10:05 PM UTC on July 21, 2024, Bitcoin remains the top cryptocurrency by market capitalization, with a price increase of 0.83% over the past 24 hours. The total crypto market is valued at $2.47 trillion, with a 24-hour trading volume of $63 billion. Bitcoin dominance stands at 54.26%, highlighting its continued dominance in the crypto market.
Overall, a potential second Trump presidency has implications for various players in the crypto industry, from overseas exchanges to U.S.-listed Bitcoin miners and crypto firms seeking to go public. The regulatory environment, banking options, and overall market dynamics could see significant shifts under a new administration, underscoring the importance of monitoring political developments for crypto market participants.