Trump has been a strong supporter of Bitcoin and cryptocurrency for some time now. He has even launched his own DeFi protocol, World Liberty Financial. The official Republican platform is also pro-crypto, and Trump has made specific commitments to the industry. He surrounds himself with individuals who are bullish on crypto, such as VP-elect JD Vance, Vivek Ramaswamy, and Howard Lutnick.
The recent election was a big win for the crypto lobby, with FairShake, the industry’s largest Super PAC, prevailing in 48 out of 48 races it backed. The Senate saw 19 pro-crypto and 12 anti-crypto candidates elected, which could potentially help Republicans retake the Senate and keep the House. The crypto lobby played a role in supporting candidates who are favorable towards the industry.
Tether, a stablecoin, emerged as a big winner from the election, despite not being directly involved in the electoral cycle. Howard Lutnick, the CEO of Cantor Fitzgerald, which custodies a large share of Tether’s Treasury portfolio, is a strong supporter of Tether. Tether’s future could be impacted by regulatory actions, as the Department of Justice is reportedly investigating them.
DeFi, decentralized finance, also stands to benefit from the election results. The industry faces regulatory challenges, but with SEC Chair Gary Gensler possibly stepping down, there may be a more favorable regulatory framework in the future. This could lead to increased interest and investment in DeFi projects.
Banks have been eager to enter the crypto space but have faced regulatory barriers. Rules such as SEC rule SAB121 have made it difficult for banks to hold crypto on behalf of clients. With potential changes under a Trump administration, banks may have more freedom to provide services to the crypto industry.
Prediction markets were also a big winner in the election, with platforms like Polymarket accurately predicting outcomes before traditional polls. Prediction markets could become a significant consumer product in the crypto space, offering a new use case for blockchain technology.
Overall, the election results have implications for the future of cryptocurrency and blockchain technology. With a pro-crypto administration, we may see increased support and favorable regulations for the industry. This could lead to further growth and innovation in the crypto space.
