'Pro-Virtual Asset' Trump 2.0 Era... Stablecoins and DeFi Benefits Expected

Expectations are rising that virtual asset regulations will be relaxed as former President Donald Trump is elected as the President of the United States. It is analyzed that the Trump administration has fired the first shot of a virtual asset-friendly policy by appointing Elon Musk, a pro-virtual asset figure, to a key government position. US-based stablecoins and decentralized finance (DeFi) projects are cited as the biggest beneficiaries of the Trump administration's pro-virtual asset policy.

According to foreign media reports on the 13th, the core of Trump's virtual asset-friendly policy is the restructuring of financial regulatory agencies. Trump had vowed during the election campaign to dismiss Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC). Gensler has been implementing a strong regulatory policy by considering most cryptocurrencies other than BTC as securities. While the US president does not have the authority to dismiss the SEC chairman, he can pressure him to resign or not reappoint him when his term expires and nominate a new candidate. If a virtual asset-friendly figure is appointed as the SEC chairman as promised by Trump, it is expected that not only BTC and ETH exchange-traded funds (ETFs), but also various financial products such as SOL ETFs could be listed.



Tom Carreras, a policy analyst at CoinDesk, said, "If the new SEC leadership shows the same pro-cryptocurrency tendencies as Trump, projects like Solana will have new opportunities." Solana is a platform that is actively used in the DeFi and Non-Fungible Token (NFT) ecosystem based on its fast processing speed and low fees.

US-based stablecoins like USDC are also expected to benefit. Trump emphasized the promotion of stablecoin use during the election campaign. It is also predicted that USDC will become a major means of cross-border payment. Bloomberg analyzed that "USDC is likely to become a major payment method in the US during Trump's tenure."

Furthermore, the Trump administration's policy is likely to provide regulatory clarity to stablecoin issuers in the US. Through clear regulations, USDC and other stablecoin projects can increase their credibility and cooperate more smoothly with financial institutions. It is also expected that USDC will have the opportunity to take the lead over USDT in the global stablecoin market.

Attention is also focused on the DeFi projects associated with the Trump family. The DeFi project 'World Liberty Financial (WLF)' supported by Donald Trump Jr. and Eric Trump, Trump's sons, aims to innovate financial payments through a dollar-pegged stablecoin. WLF is particularly focused on innovating payment systems in and outside the US, so it is likely to directly benefit from the cryptocurrency support policies of the Trump administration. If DeFi projects are popularized in the US's major payment market, it is expected to act as a catalyst for the growth of the virtual asset industry as a whole.

There are also projects that have established cooperative relationships with the Trump administration during his first term. Orbs, an Israeli blockchain startup, developed a blockchain solution in 2019 to track and transparently manage capital flows in the Israel-Palestine region as part of the Trump administration's 'Peace to Prosperity' program. Orbs is also expected to benefit if DeFi is activated by Trump's pro-virtual asset policy, as it provides a 'liquidity hub' solution that enables efficient DeFi services.

Attention is also focused on the future of Polymarket, which gained attention for accurately predicting Trump's election. Polymarket, a decentralized prediction platform, uses blockchain technology to increase transparency and credibility. Experts analyze that Polymarket has become a useful platform that goes beyond a simple betting tool by converting various opinions into data through its decentralized structure. If the Trump administration implements policies to deregulate the research industry and promote the adoption of blockchain technology, Polymarket is expected to create an environment where it can attract more users and capital. In the future, Polymarket's role is expected to be strengthened not only in political events but also in various socioeconomic events in the research industry.

Reporter Kim Jeong-woo

woo@decenter.kr