The 2024 US presidential election has created significant changes in the outlook for cryptocurrency policy as Donald Trump prepares to return to the White House for a second term.
Following Trump's victory and the Republican Party's control of the US Senate - with the House of Representatives also within reach - crypto supporters, including Coinbase CEO Brian Armstrong, have expressed optimism that the change in administration could benefit the digital asset industry.
Reacting to the election results, the price of Bitcoin (BTC) surged above $75,000 on November 6, amid expectations of regulatory clarity, legislative opportunities, and anticipation for changes at the US Securities and Exchange Commission.
With the Republicans now holding a majority in the Senate and Trump's generally pro-crypto stance, the US may witness a more favorable regulatory approach, especially if Trump follows through on his promise to replace SEC Chair Gary Gensler.
Shifting Pro-Crypto Sentiment
Several key political races have shown the rising pro-crypto trend, such as in Ohio, where Republican candidate Bernie Moreno defeated incumbent Sherrod Brown, a frequent critic of cryptocurrencies.
Moreno's victory highlights a shift in attitude towards crypto policy, as Armstrong posted on X on November 6, "Bernie Moreno's pro-crypto stance was a key factor in his victory over Sherrod Brown."
Over 250 pro-crypto candidates have been elected to the House, creating the "most pro-crypto Congress ever," according to the Coinbase CEO.
Source: Brian Armstrong
Regulatory Clarity
Armstrong wrote about the impacts on the industry following the election results, arguing that voters' choice for economic freedom reflects disillusionment with excessive regulation.
"America will be on a path to economic freedom, which is the source of strength through limited government, rule of law, fiscal responsibility, financial discipline, and respect for free markets (not government)," the Coinbase CEO stated.
As the CEO of a centralized cryptocurrency exchange, Armstrong's views also emphasize potential benefits for CEXs, including reduced regulatory oversight and increased operational flexibility.
Driving Change at the SEC
On November 6, Coinbase's Chief Legal Officer Paul Grewal reinforced Armstrong's position, calling on the SEC to "stop suing crypto" and "start regulating now."
Trump's promise focuses on unifying the nation and ending what he calls the Biden-Harris administration's "crypto crusade," along with a pledge to fire Gensler on his first day in office.
Gensler, appointed by President Joe Biden, has led the SEC's period of enforcement actions against Coinbase, MetaMask developer ConsenSys, and decentralized exchange Uniswap, among other companies.
If Trump follows through on his promise to fire Gensler on his first day, the SEC chair's term, expected to end in April 2025, could end abruptly and prematurely.
