Trump's Victory Signals Golden Era for Cryptocurrency Industry

(Patria) - Donald Trump's triumphant return to the White House signals a potential golden era for cryptocurrencies, whose influential proponents strongly supported his presidential candidacy.

After initial years of bitcoin dominance, the cryptocurrency industry fell into a "crypto winter," burdened by scandals and hostile regulatory oversight, AFP reports.

But the upcoming Trump presidency has spurred an enthusiastic market response, with bitcoin rising by more than 25 percent in a week and breaking the $90,000 mark for the first time.

The president-elect had previously expressed opposition to digital currencies, but during his election campaign, he pledged to make the United States the "world's cryptocurrency capital," a dramatic shift that has been met with an influx of financial and other support from the sector.

Crypto-related groups spent about $245 million on elections this year, according to the Federal Election Commission, with much of it targeting the sector's Democratic opponents.

The Washington Post writes that Trump is already seeking crypto-friendly candidates for key government positions. Many potential appointees have close ties to Elon Musk, the world's richest man who is a constant presence by Trump's side and a vocal advocate for cryptocurrencies.

Among Trump's primary targets will be the removal of Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who has been a major opponent of the sector.

In the absence of clear regulations, Gensler has taken an aggressive stance towards digital currencies, treating them as traditional financial securities like stocks and bonds.

This approach has led to SEC lawsuits against major trading platforms, including Binance, Coinbase, and Kraken, along with various smaller startups.

The industry has advocated for regulatory clarity from Congress, a goal once championed by crypto billionaire Sam Bankman Fried before his downfall related to fraud tarnished the sector's reputation.

Industry leaders are optimistic about a departure from the perceived hostility of President Joe Biden's administration. The president-elect has also discussed establishing national bitcoin reserves, a move that could further boost cryptocurrencies. The government currently holds about 210,000 bitcoins worth around $18 billion, mostly from court seizures.