Traders are banking on Trump’s pro-crypto action

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Here’s the deal: We know that Trump was definitely the favorable candidate for a more crypto-friendly regulatory environment. 

And it’s clear from a lot of the reactions we’ve seen — either from bitcoin or crypto stocks like COIN — that investors are really banking on that environment over the next four years. 

While I will once again repeat that we don’t have a clear policy framework from President-elect Trump, let’s just say that Trump’s one big task when he’s in office is somehow getting SEC Chair Gary Gensler ousted from his post as the head of the SEC.

If he’s successful, whoever Trump selects is likely to be “more lenient toward the crypto industry, perhaps focusing more on bringing regulatory clarity than a constant slew of enforcement actions. After all, Trump has even launched his own crypto trading platform,” Pillsbury partner David Oliwenstein told me.

Empire co-host Jason Yanowitz told Yahoo Finance on Wednesday that there “needs” to be a change in SEC leadership. Who would take the place of Gensler is still way up in the air though if we’re listening to rumors and reports, then Robinhood’s Dan Gallagher’s name may be floating around the Trump sphere.

When I spoke to Oliwenstein — before Trump was officially announced as the winner — he also pointed out that one key role in the SEC is the director of enforcement for the enforcement division. 

“The former director of enforcement at the SEC under Gensler, Gubir Grewal, left his position in October, but his replacement, Acting Director Sanjay Wadhwa, will likely be at least as aggressive in his enforcement actions against the crypto industry. If Sanjay receives a permanent appoint as director, the market should expect aggressive enforcement in general and specifically with respect to crypto assets,” Oliwenstein said. Though, under a Trump presidency, it may be unlikely that Wadhwa will receive that appointment. 

Looking outside of the SEC — and honestly, the Trump presidency — Election Night was a win for a Republican Senate as well, with new pro-crypto folks taking seats, partially due to the immense support of crypto super PACs like Fairshake.

“With the amount of influence and political capital that the crypto industry has garnered over the past 12 months, it is likely that a stablecoin bill and market structure bill will pass in the next two years regardless of which administration we are dealing with. In addition to stablecoin legislation and the market structure legislation, the most important issue is tax treatment for crypto,” Texas Blockchain Council president Lee Bratcher said. 

“A de minimis exemption is needed before the US can truly become a global crypto leader …This is a very pinnacle moment in the industry, as regulators have now become more open to working on digital asset policy and pushing the industry towards innovation.”

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