Trump's Win: Crypto's Regulatory Clouds to Clear?

Former U.S. President Donald Trump has reclaimed the White House, securing an overwhelming number of electoral college votes to defeat Vice President Kamala Harris. This victory suggests a potentially more favorable regulatory landscape for cryptocurrency in the United States, the world's largest economy.

Crypto's Role in the Election

While cryptocurrency was not a central theme in the election, Trump actively engaged with the crypto community. His outreach included:

• Speaking at a bitcoin conference
• Distributing burgers at a crypto bar
• Making statements that resonated with the crypto sector, including a promise to dismiss Securities and Exchange Commission Chair Gary Gensler.

In contrast, Harris made only a few general supportive comments about the industry without providing in-depth insights.

Election Results and Republican Gains

On Wednesday morning, AP's live tracker indicated that Trump won Wisconsin, adding 10 electoral votes to his tally, bringing his total to 277—well above the 270 needed for election. The Republicans also regained control of the Senate, flipping seats in Ohio, Montana, and West Virginia.

Regulatory Changes Ahead

During his first term, Trump's administration introduced a contentious wallet proposal that was ultimately abandoned under Biden, as well as a special purpose broker-dealer license finalized under Gensler.

Despite this mixed regulatory history, Trump has pledged to appoint a new chair for the SEC and has expressed ambitions for Bitcoin to be produced in the USA. Additionally, he has promised to release Ross Ulbricht, the Silk Road developer convicted on various charges.

Support from the Crypto Community

Trump's outreach has garnered vocal support from segments of the crypto industry, enhancing his existing popularity following the sale of multiple waves of non-fungible tokens.

At the Bitcoin Nashville event, Trump remarked:

"Bitcoin is not just a marvel of technology, as you know, it's a miracle of cooperation and human achievement and a lot of relationships that are formed. They just did a meeting, a roundtable, with a lot of the leaders, and it's amazing. There's a great camaraderie."

Authoritarian Rhetoric and Economic Policies

Recently, Trump has adopted more authoritarian language, warning of "the enemy within" the U.S. and promising mass deportations during his campaign. His economic strategies seem to heavily rely on imposing tariffs on imports from U.S. trading partners.