The crypto industry finds itself in a state of anticipation as the possibility of a second term for former President Donald Trump looms on the horizon. With Trump vowing to put an end to President Joe Biden’s crackdown on cryptocurrencies, the stakes are high for both domestic and overseas crypto firms. Recent polls have indicated an increasing likelihood of Trump winning the U.S. elections in November, causing a ripple of concern among foreign crypto exchanges like Binance, OKX, and Deribit.
Should Trump secure a second term, overseas crypto exchanges may find themselves at a disadvantage compared to their U.S. counterparts. With the promise of more crypto-friendly regulations, U.S. exchanges could potentially offer more leverage, crypto futures, and options contracts with extended expiration dates. This shift in the regulatory landscape could pose a challenge for foreign exchanges that had previously seen a rise in market shares as U.S. rivals faced regulatory hurdles.
The largest manufacturer of Bitcoin mining machines, Bitmain, could also face obstacles under a renewed Trump presidency. With U.S. rivals such as Block and Auradine entering the market with new chips and machines, Bitmain may struggle to maintain its dominance. Most U.S.-listed Bitcoin miners currently rely on mining rigs from Chinese conglomerates, creating a potential vulnerability for the industry should geopolitical tensions arise.
Despite the challenges posed to overseas firms, many believe that a second Trump presidency could spell success for U.S. crypto companies. Analysts predict that Trump’s overt support for Bitcoin and crypto could benefit crypto stocks and mining companies. With promises of new rules and regulations, nearly every U.S. crypto firm stands to gain under a more crypto-friendly administration.
Under President Biden’s leadership and Gary Gensler’s tenure at the U.S. Securities and Exchange Commission (SEC), crypto firms have faced obstacles in pursuing Initial Public Offerings (IPOs). Companies like Circle and Kraken have encountered delays and setbacks in their plans to go public. However, a potential shift in leadership and regulatory approach under a second Trump presidency could pave the way for these firms to finally secure IPO listings and expand their operations.
Crypto exchanges have increasingly grappled with banking challenges and regulatory scrutiny, particularly under the Biden administration. However, a Trump presidency could bring about a more lenient regulatory environment, potentially expanding the pool of banking options available to crypto firms. Additionally, Trump’s vow to block the issuance of a digital dollar could be seen as a positive development for the crypto industry, which views central bank digital currencies as a threat to financial privacy.
As of the latest data available, Bitcoin maintains its position as the top cryptocurrency by market capitalization, with a market cap of $1.34 trillion and a 24-hour trading volume of $25.65 billion. The total crypto market is valued at $2.47 trillion, with Bitcoin dominance standing at 54.26%. The industry continues to watch closely as political developments unfold and the future of crypto regulation hangs in the balance.