Crypto News Today- How a Second Trump Term Might Shift the Crypto Landscape in Favor of U.S. Firms
Crypto News Today- The crypto industry is eagerly anticipating the possibility of a second Donald Trump presidency. The former president has pledged to overturn President Joe Biden’s stringent regulations on cryptocurrency, which has sparked optimism within the crypto community.
Rising Odds for Trump’s Victory
Trump’s chances of winning the U.S. elections in November have increased following a recent assassination attempt against him. A CBS News poll released this week shows that 52% of voters are now inclined to support Trump for a second term. This shift in public sentiment could have significant implications for the crypto market.
Potential Impact on Foreign Crypto Exchanges
While the crypto industry in the U.S. is hopeful about Trump’s promises, foreign crypto exchanges might face difficulties. Major overseas players such as Binance, OKX, and Deribit could see their market shares diminish as U.S. exchanges benefit from a more favorable regulatory environment under Trump.
Previously, these foreign exchanges gained market share due to the difficulties faced by U.S. competitors, who had to close or delay launching popular crypto services. Trump’s proposed crypto-friendly regulations could enable U.S. exchanges to introduce new trading services, including those with higher leverage or extended futures and options contracts.
Challenges for Bitmain and Other Foreign Crypto Entities
Bitmain, the leading manufacturer of Bitcoin mining machines, may encounter challenges under a Trump administration. Many U.S.-listed Bitcoin miners currently rely on mining rigs from this Chinese company. With U.S. rivals like Block and Auradine offering new chips and machines, Bitmain could face increased competition.
U.S. Crypto Firms Poised for Growth
Most U.S. crypto firms are expected to benefit significantly from a second Trump term. Analysts from Jefferies have indicated that Trump’s explicit support for Bitcoin and other cryptocurrencies could positively impact crypto stocks. Christian Catalini, founder of MIT Cryptoeconomics Lab, mentioned that almost everyone in the U.S. would be a winner if they adapt to the new regulatory environment.
IPO Prospects for Crypto Companies
Under Trump’s presidency, U.S. crypto firms might find it easier to go public. For instance, Circle, the issuer of USD Coin (USDC), had postponed its IPO plans under Biden but is now preparing to file in January 2024. Similarly, Kraken, the second-largest U.S. crypto exchange, and Northern Data, a crypto mining company turned AI computing provider, are also planning IPOs. Trump’s potential replacement of SEC Chairman Gary Gensler with a more crypto-friendly figure could further facilitate these listings.
Political Donations and Support for Trump
Kraken founder Jesse Powell, who has donated $1 million to Trump’s campaign, is among many in the crypto industry backing the former president’s re-election bid. This support reflects the broader sentiment within the industry that a Trump presidency could bring favorable changes.
Expanding Banking Options for Crypto Exchanges
Crypto exchanges, which have faced banking difficulties due to tighter regulations, might see an improvement in their banking options if Trump eases regulations. This could provide much-needed relief to crypto firms struggling with banking challenges.
Trump’s Stance on Digital Currencies
In addition to his broader crypto policies, Trump has vowed to block the issuance of a digital dollar. This position is seen as a positive development for the crypto industry, which views central bank digital currencies (CBDCs) as a potential tool for government financial surveillance. Trump has previously criticized CBDCs as very dangerous.
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