by Daniel Johnson
November 12, 2024
With Elon Musk in his ear, the cryptocurrency industry is likely to receive favorable policy proposals in the next iteration of the Trump Administration
Cryptocurrency is surging following Donald Trump’s election to the office of President of the United States of America; although it was already on an upswing, its momentum has been bullish due to the market’s interpretation of Trump’s promises around cryptocurrency.
According to Fast Company, although neither political party fully trusts cryptocurrency, Trump has positioned himself as the cryptocurrency president.
The Republican Party has fallen in line with Trump as he has fully embraced the digital currencies.
In a video he posted to social media in August, Trump promised that the United States would be the crypto capital of the world.
“This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet. They want to choke you. They want to choke you out of business. We’re not going to let that happen,” Trump said in the video.
The “they” is unclear, but with Elon Musk in his ear, the cryptocurrency industry is likely to receive favorable policy proposals in the next iteration of the Trump administration.
The market seems to suggest that an incoming president and one of his key advisors’ strong backing for crypto are good developments for cryptocurrency investors.
Indeed, according to Susannah Streeter, the head of money and markets at investment analysis company Hargreaves Lansdown, the market is experiencing “euphoria” post-election.
“His (Trump’s) pledge to go all in on crypto has sent Bitcoin to fresh heady heights,” Streeter said in a research note released on Nov. 11.
Streeter continued, “He’s made an about-turn on supporting the industry and is now vowing to turn the U.S. into the crypto capital of the world. Bitcoin speculators are betting on a more clement regulatory environment and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand.”
In a previous research note, Streeter also noted that “Investors should only dabble in crypto with money that they can be prepared to lose. Because we’ve seen these wild swings in the past.”
According to The Associated Press, Trump has also promised to remove Gary Gensler, the head of the Securities and Exchange Commission.
Gensler has been critical of cryptocurrency in his role, leading the government to crack down on cryptocurrency and calling for more oversight of the incredibly volatile digital currencies.
In October, Gensler criticized the cryptocurrency field in general during a discussion at the New York University School of Law.
“We’re trying to enforce the laws at hand…This is a field with a lot of fraudsters, a lot of grifters, a lot of scams,” Gensler said.
Mauvis Ledford, the CEO of Sogni AI, a Singapore-based tech startup, told Al-Jazeera that the Trump administration could adopt cryptocurrency to stimulate economic growth.
“It’s plausible that Trump’s administration might explore leveraging blockchain technology to enhance transparency and efficiency in government operations, especially with Elon Musk as an adviser,” Ledford said. “There could also be initiatives aimed at promoting the adoption of cryptocurrencies to stimulate economic growth and attract tech-driven investments.”
However, Ledford also has reservations about how far Trump will go in favor of digital currencies.
“I don’t personally believe anything Trump says, however, and blockchains do allow the creation of rules that everyone must follow, which I don’t think Trump would specifically like in a government he runs.”
Ledford noted that cryptocurrency is becoming more mainstream, which should help legitimize it as more technology guardrails are erected.
“Major companies are integrating crypto payments, and advancements in blockchain technology are making transactions more secure and efficient. Additionally, regulatory frameworks are evolving, which could provide more stability and legitimacy to the crypto market.”
RELATED CONTENT: Could Bitcoin Reach $100K Per Share Next Year?
