The recent US election victory of Donald Trump has generated a wave of optimism among crypto executives, who see his win as a catalyst for a “golden era” of pro-crypto regulatory policies.
Crypto hits new high
Richard Teng, CEO of Binance, one of the world’s largest cryptocurrency exchanges, hailed Trump’s win as a “big win for crypto,” suggesting that the change in administration will bring regulators who are more open to digital currencies.
This anticipated regulatory shift is likely to influence crypto’s future in the US, with new policies that may reduce previous barriers and promote mainstream acceptance.
A Golden Age
Historically, cryptocurrency firms have faced significant regulatory challenges in the US, particularly under the previous Democratic administration.
Notable companies, including Binance, Coinbase, and Ripple, have faced lawsuits from the Securities and Exchange Commission (SEC) for alleged violations of securities laws.
However, with Trump in office, crypto executives expect a more favourable regulatory landscape, driven by a new set of policies that could foster industry growth.
Venture capitalist Shervin Pishevar highlighted this sentiment, saying that the US is “now on the verge of sensible crypto policy,” signalling a hopeful shift from enforcement-heavy measures to constructive oversight.
The pro-crypto excitement also stems from the extensive lobbying efforts made by the crypto industry in recent years.
Political action committees (PACs) like Fairshake, funded by Coinbase, Andreessen Horowitz, and Ripple Labs, have invested millions into supporting pro-crypto candidates.
As a result, the new Congress now includes a considerable number of representatives advocating for clear and favourable crypto legislation.
Kristin Smith, CEO of the Blockchain Association, emphasised that crypto has become a “powerful political force” in Washington, giving the industry leverage to prevent any “unfair actions” by regulators.
A Regulatory Shift
One of the crypto sector’s most immediate goals is a regulatory shift at the SEC, which has faced criticism for its aggressive approach toward digital assets.
Many crypto executives believe that the SEC’s enforcement actions stifle innovation, relying on outdated securities laws to police an industry that requires unique and flexible regulatory frameworks.
While Trump has expressed a willingness to overhaul the SEC’s leadership, replacing current chair Gary Gensler may be legally complex, as the SEC is an independent agency.
Even so, crypto proponents hope a more industry-friendly SEC could “press pause” on pending cases and facilitate a more balanced approach to digital assets.
Another major focus is reforming accounting rules affecting banks and fund managers holding digital assets on behalf of customers.
In 2022, the SEC implemented a rule requiring banks to list these assets as liabilities on their balance sheets, a move that faced significant opposition.
A repeal passed Congress but was vetoed by President Biden.
With Republicans now holding a substantial share of seats, industry insiders are optimistic that a similar repeal could pass, clearing the way for major financial institutions to safely enter the crypto custody market.
As Galaxy founder Mike Novogratz noted, enabling banks like BNY Mellon and State Street to serve as crypto custodians would unleash “a tsunami of institutional participation.”
As crypto’s ambitions grow under Trump’s administration, questions remain about the feasibility of certain promises, such as establishing a strategic Bitcoin reserve fund.
Analysts, including Standard Chartered’s Geoff Kendrick, remain sceptical, pointing out that campaign promises often encounter practical challenges once in office.
Nonetheless, with pro-crypto voices now occupying a prominent position in Washington, the industry is hopeful for a regulatory environment that promotes growth while safeguarding consumer interests.
The upcoming months will likely reveal how much of this optimism will translate into actionable policies, setting the stage for the next chapter in America’s crypto journey.
The post Crypto hits new high as expectation grows on Trump election win appeared first on Payments Cards & Mobile.