After the frenzy of this presidential election, one group definitely celebrating are cryptocurrency backers.
Even before the election had been officially called, the price of bitcoin surged to a record high while dogecoin – championed by Elon Musk – rocketed up by 18%.
Incoming president Trump is a vocal advocate of cryptocurrencies, even though their perceived risks have seen investors selling them off as risky assets in the tech downturn.
Soaring Assets
AP News reports that bitcoin jumped nearly 8% in early trading, which meant it climbed above $75,000, while its close rival, ether, saw an 7% boost. Coinbase enjoyed a 17% leap and its Chief Legal Officer, Paul Grewal, took the opportunity to petition the SEC to rethink how it regulates cryptocurrencies.
Companies offering crypto trading also got in on the action. “Online brokerage Robinhood Markets, which offers crypto trading, soared 12% and MicroStrategy, which says it is the ‘largest corporate holder of bitcoin,’ jumped 10%,” says the news service.
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Trump Is a Crypto Convert
Trump had previously referred to cryptocurrencies as a scam but, perhaps influenced by his new best friend, Musk, he changed tact.
With his usual hyperbole, Trump has pledged “to make the United States the ‘bitcoin and cryptocurrency capital of the world,'” writes The Guardian. His campaign even accepted cryptocurrency donations.
He has even launched his own cryptocurrency lending and borrowing venture called World Liberty Financial with his sons.
Light Touch Regulation
Experts are predicting that the Trump administration will pursue a policy of “light touch administration” towards cryptocurrencies.
This is a dramatic change. Trump already has the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the government’s approach to cryptocurrencies to date, in his sights.
Cryptocurrency CEOs are pushing for his removal and already riled up at the prospect of regulatory change knowing there will be fewer voices of caution in the new administration.
“Tonight the crypto voter has spoken decisively – across party lines and in key races across the country,” said Coinbase CEO Brian Armstrong. “Americans disproportionately care about crypto and want clear rules of the road for digital assets. We look forward to working with the new Congress to deliver it.”
