Trump’s Return Could Boost Crypto Legislation
A recent note from Compass Point Research & Trading suggests that a Donald Trump return to the White House could be a positive development for the cryptocurrency and digital asset sector.
Trump’s Pro-Crypto Stance
Trump has expressed support for cryptocurrencies, with his campaign accepting crypto donations. He has also met with crypto miners to discuss how the industry could benefit U.S. energy production and AI development. The Republican National Committee’s 2024 platform reflects Trump’s pro-crypto stance, committing to ending the crackdown on crypto and blocking the development of a central bank digital currency (CBDC).
Vance’s Crypto-Friendly Approach
Trump’s selection of Senator J.D. Vance as his Vice-President candidate further strengthens the pro-crypto stance. Vance, who holds a significant amount of Bitcoin, has proposed legislation that would address crypto regulation in a way considered more industry-friendly than the Financial Innovation and Technology for the 21st Century Act (FIT21).
Bipartisan Support for Crypto Legislation
The potential for bipartisan support for crypto legislation is also a positive sign. The Senate Agriculture Committee Chair, Debbie Stabenow, is circulating a draft crypto bill, and her collaboration with House Financial Services Committee Chair Patrick McHenry, who successfully passed FIT21 in the House, indicates the possibility of cooperation on crypto regulation.
Potential for Crypto Legislation in 2025-2026
Compass Point highlights that a Trump administration with a Republican-controlled Congress would have a two-year window to pass crypto legislation in 2025-2026. The passage of FIT21 and Stabenow’s efforts to move a bill out of committee suggest a shifting landscape that favors comprehensive crypto legislation.
SEC Leadership Change Could Benefit Crypto
A Trump administration could also lead to a change in SEC leadership. Hester Peirce, a potential candidate for SEC Chair, is known for her support of crypto. A change in leadership could ease the SEC’s crackdown on the industry and accelerate the resolution of outstanding cases, like the lawsuit against Coinbase.
The Future of Crypto Legislation
While it’s still too early to say definitively what the future holds for crypto legislation, the current environment appears to be more favorable than in the past. A Trump victory in 2024, coupled with the increasing bipartisan support for crypto regulation, could create a conducive environment for the passage of comprehensive crypto legislation.
