As the dust settles on the recent US presidential election, it has become increasingly clear that Donald Trump’s victory has significant implications for the cryptocurrency community. Despite some initial skepticism about Trump’s commitment to crypto, his administration is shaping up to be a friend to the industry.

A Pro-Crypto President and Cabinet

Trump has been vocal in his support for Bitcoin (BTC) and cryptocurrency as a whole, often going so far as to make bold promises about what he would do if elected. His official Republican platform is also decidedly pro-crypto, with commitments to:

• Freeing Ross Ulbricht: The creator of the Silk Road marketplace was sentenced to life in prison for his role in facilitating illicit activities on the site. Trump’s promise to pardon Ulbricht suggests that he may be willing to re-examine the harsh sentences handed down to cryptocurrency users.
• Ending SEC Chair Gary Gensler’s reign: Gensler has been a vocal critic of cryptocurrency, often describing it as "unstable" and prone to manipulation. Trump’s opposition to Gensler could signal a shift in the regulatory landscape, with potentially more favorable treatment for crypto.
• Letting Bitcoin miners mine: The US government has imposed strict regulations on Bitcoin mining operations, limiting their ability to operate efficiently. Trump’s promise to relax these restrictions could have significant benefits for the industry.
• Ending Chokepoint 2.0: This initiative, led by the FDIC, OCC, and Fed, aims to restrict banks’ ability to do business with cryptocurrency companies. Trump’s opposition to this policy could pave the way for greater cooperation between banks and crypto firms.

A Pro-Crypto Cabinet

Trump’s cabinet is also filled with individuals who are sympathetic to the cryptocurrency community. Some notable appointments include:

• Steve Bannon: The former White House chief strategist has been a vocal supporter of Bitcoin, often praising its potential as a store of value.
• Jared Kushner: Trump’s son-in-law and advisor has been involved in discussions about creating a US-based cryptocurrency exchange.
• Gary Cohn: The former Goldman Sachs president has expressed interest in exploring the use of blockchain technology for financial transactions.

Banks Serving Crypto

One area where Trump’s administration may have a significant impact is in opening up the banking system to cryptocurrency companies. Currently, banks are hesitant to provide services to crypto firms due to regulatory uncertainty and potential risks associated with doing business with them.

Trump’s promise to eliminate Chokepoint 2.0 could pave the way for greater cooperation between banks and crypto firms, allowing them to access traditional financial services like lending and payment processing. This could have significant benefits for the industry, enabling greater adoption and mainstream recognition of cryptocurrency as a legitimate asset class.

Prediction Markets

Another area where Trump’s victory may have an impact is in the realm of prediction markets. These platforms allow users to bet on the outcome of future events, often with more accuracy than traditional polls or media outlets.

Trump’s election has already proven beneficial for prediction markets, with Polymarket performing exceptionally well in calling various races before the mainstream media did. This trend is likely to continue, with prediction markets becoming an increasingly important tool for gauging public opinion and forecasting future events.

Conclusion

The cryptocurrency community has reason to be optimistic about Trump’s presidency, given his administration’s commitment to supporting the industry. From freeing Ross Ulbricht to ending Chokepoint 2.0, there are several initiatives underway that could have significant benefits for crypto users.

While it remains to be seen how these policies will play out in practice, one thing is clear: Trump’s victory has already sent a strong signal about his commitment to supporting the cryptocurrency community.