In the past week, millions of Americans made a decision. A decision that affects not only the US, but the global financial sphere, including on the world of decentralized finance (DeFi).
The weeks before the US presidential elections came with a lot of FUD with various analysts making projections and predictions. The biggest conversations surrounded the topic of what each candidate has to offer crypto.
Many opinions on the internet as to why Trump won the election, but the aim of this newsletter is to see it from the point-of-view of a crypto enthusiast and a Web3 project manager.
Let’s see what the decision of Americans spells for us and our digital assets. Stay with me as I walk you through what to expect from Donald J. Trump as well as how Bitcoin and the wider crypto landscape will be affected.
The information provided here is NFA but aims to help you navigate the DeFi landscape in the coming period.
Backstory
Over the last four years, Kamala Harris’s position as Biden’s Vice President has made the Democratic party’s stance on cryptocurrency clear: regulation.
Early in the Biden administration, there were indications of impending regulation. However, the Sam Bankman-Fried fraud case gave significant backing to their case. This push for regulation was spearheaded by Democrat senators, including Elizabeth Warren. While Harris argues that her regulations are being put in place to protect investors from frauds like FTX, it still doesn’t sit well with players on the crypto space.
If there is one thing decentralisation does not work with, it’s centralised regulation.
However, Trump isn’t entirely blameless either. Back in 2019, during his first term as president, he labeled Bitcoin a scam. But since then, he seems to have made a significant turnaround. In recent years, his stance on crypto has shifted from tolerance to enthusiasm. He has launched his own $TRUMP token and several NFT collections. He has even discussed plans to create his own decentralized exchange, World Liberty Financial.
It’s clear that Trump has spent the past few years assessing and recognizing the crypto space. His current campaign fully acknowledges crypto as a significant technological innovation, with policies designed to support it. Meanwhile, many crypto founders and developers are leaving the U.S. due to regulations imposed by the current Democratic administration. They’re being driven to build in Canada and other countries with more favorable crypto environments..
Well, let’s see the policies promised by Trump that raised so many followers from the crypto space
Policies to Expect
The key distinction between Trump’s policies and Harris’ policies on cryptocurrency is clarity.Trump clearly states his plans for cryptocurrency, while Harris expresses openness and speaks favorably about crypto but lacks concrete policies, focusing instead on an optimistic vision of crypto’s future under SEC regulations.
Now, let’s address the Securites and Exchange Commssion (SEC). Over the past four years, the SEC, led by Gary Gensler, has played a major role in shaping crypto-related policies. And what the people want is straightforward; Gary Gensler out. Even the CEO of Blockchain Association told Bloomberg: “Gary Gensler’s got to go. There is no question about that.”
Despite this sentiment, Harris gives no definite answer regarding Gensler, whereas Trump is clear cut as to the matter. In fact, he declares it will be his first duty in office. Chads on the crypto space are even taking bets that Gensler will be fired on the same day Trump is inaugurated.
In Trump’s exact words: “I’m laying out my plan to ensure that the United States will be the crypto capital of the planet, and the Bitcoin superpower of the world.”
Why is this important?
The U.S. is already a global leader in traditional finance, and this strong position could play a crucial role in establishing cryptocurrency. Leading up to the election, the crypto ecosystem in the U.S. has struggled, with industry leaders pushing to keep crypto-based projects in the country. However, they need the right regulatory framework for it to succeed — something Harris’s policies do not currently offer.
While these crypto projects can operate out of other countries, the U.S.’s strong financial status globally provides the ideal environment for De-Fi to thrive.
Trump’s plans include positioning the U.S. as a world leader in Bitcoin mining and creating a national strategic reserve of Bitcoin. This would provide legal and financial support for cryptocurrency, offering a form of assurance and longevity. Anchoring crypto within a global financial leader like the U.S. could greatly boost DeFi growth for investors worldwide.
Bitcoin
Bitcoin will be fine. I suppose.
Unlike other cryptocurrencies and alt coins, Bitcoin has been around long enough to establish a foothold in mainstream finance.
To put this in perspective, this is not Bitcoin’s first rodeo. Bitcoin has weathered the 2012, 2016, 2020, and now 2024 elections, and none of these elections have been able to stop Bitcoin from making an upward trend. Historically, Bitcoin has shown a bullish pattern following elections, surging as much as 44% after the 2020 election. And within days of Trump’s victory this year, Bitcoin’s value has already increased by about 10%.
Furthermore, Bitcoin is now a significant player in the U.S. economy. Beyond being an accepted mode of exchange in businesses nationwide, the Wall Street and big investors like Blackrock now recognise Bitcoin and invest heavily in it.
Given Bitcoin’s strong position in global finance, it is safe to say that Bitcoin’s stability was not election-dependent — though the current rise to $80,000 might not have been as sharp. Perhaps more attention should be directed toward other cryptocurrencies that contribute to the broader DeFi ecosystem.
The Crypto Landscape
Crypto did a good job of positioning as a subject matter in this year’s U.S. presidential elections, playing an important role in Trump’s win. Asides having Trump at a speaker at this year’s Bitcoin conference and leading conversations on social media, especially X, crypto also made a financial statement.
While it’s typical for candidates to receive campaign donations from large companies hoping to influence the election in their favor, this year saw major DeFi players like Coinbase, Ripple, and A16z contribute to the cause. As Trump campaigned, crypto companies also rallied, collectively donating a remarkable $120 million to the election — more than any other individual sector.
This action made a powerful statement to traditional finance, proving that cryptocurrencies deserve a place in mainstream financial activities. It also highlighted crypto’s influence over critical events like the presidential election.
Conclusion
Now that DeFi has successfully rallied and achieved its goals in the 2024 U.S. presidential election, what’s next?
It is obvious that Trump intends to implement favorable policies to make the U.S. an ideal environment for crypto to thrive. However, the presidential win is just one of many hurdles. The support of the broader government structure, along with robust legal frameworks, is essential for these policies to take root.
How can this be achieved?
Currently, one-third of U.S. Senate seats and all seats in the House of Representatives are up for election. The outcomes of these elections will influence how achievable Trump’s crypto policies will be.
If all goes well, crypto could be on track for a highly bullish period in the coming years.
What Does Trump’s Win Mean For Crypto: Doom or Bull was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.