After months when the opinion polls suggested the election was too close to call, it wasn’t as close as anyone could have imagined. Donald Trump cleaned up in the seven swing states and is now on his way back to the White House.
Not surprisingly, this outcome divided opinion in the starkest fashion. But whatever one thinks of his personality, policy programme, or his choices for government office, there is one clear winner: Cryptocurrency.
Whereas there has been some ambiguity among Democrats over Crypto, with the likes of Elizabeth Warren seeking to increase regulation, Mr Trump has taken a clear pro-crypto line. Nor is this just rhetoric; he has pledged to create whole new governmental bodies aimed at facilitating its growth.
For Volta Card holders, these are fascinating times. The card exists to enable people to spend their crypto among the growing array of vendors who will accept crypto as payment. Could this grow with a pro-Crypto administration in the White House?
What Donald Plans To Do
Mr Trump’s campaign pledges did not just include a promise to end the “persecution” of the sector and ensure the US is the “Bitcoin superpower of the world”, but some concrete pledges. These included establishing a crypto advisory panel and a strategic reserve for Bitcoin, compiled from seized assets taken from financial criminals.
In addition, the president-elect has promised to sack the chair of the Securities and Exchange Commission Gary Gansler, who under the Biden administration has been pushing for ever-tougher regulation of the sector. It all marks a remarkable turnaround for Mr Trump, who was sceptical about Crypto during his first term.
Because of this, it is no secret that the crypto world has been heavily backing the Republican candidate’s election bid. The president-elect will be expected to deliver.
It is small wonder, therefore, that Bitcoin prices have soared to record levels, with values now approaching $100,000 for the first time.
Why Bitcoin Investors Are Winners
Of course, this brings some immediate and obvious opportunities for traders who may buy Bitcoin looking to ride this bull market. But a pro-crypto US government should also provide a boost for other currencies as well, since all of them could benefit from this support and the development of institutions designed to do just that.
Nonetheless, Bitcoin investors are the big winners just now, Alicia Kao, the managing director of crypto exchange KuCoin, told Reuters, stating that everyone who has bought Bitcoin has now made a profit.
“But those who bought it early, when there were significant obstacles to doing so and there was the might of the world’s financial and governmental forces intent on crushing it, are the real winners,” she added.
This, she emphasised, was “not because they’re rich, but because they’re right”.
Some people, of course, will be both rich and right – and no doubt keen to make the most of their new-found wealth. This could include spending some of this windfall on luxury goods, hotel stays, or a myriad of other things depending on their availability.
How Trump’s Cabinet Will Cement A Pro-Crypto Environment
That availability might grow exponentially if the effect on crypto markets of the new administration goes beyond a “Trump bump” and becomes sustained. Indeed, it may be that, four years down the line, crypto is so well established that no US administration, Republican or Democrat, will dare apply anything more than a light touch of regulation.
Of course, that remains to be seen, as do the details of what the new administration will put in place. Individuals like Elon Musk are very keen on crypto themselves, so he may not be too far from the action, but the actual power will be wielded by whoever gets to hold formal office, which requires Senate approval. As Matt Gaetz has found, this is not a given.
If Howard Lutnick is approved for the role of commerce secretary, this will be a significant appointment, as he is both an investment banker (he heads up Cantor Fitzgerald) and a fan of cryptocurrency. This is exactly the kind of pick that shows the administration will be serious about running a crypto-friendly financial system.
Elections can have various effects on markets. Often, markets will rise when there is a clear result, whoever side it is, just because there is less uncertainty. But sometimes some responses arise from perceptions of who will be the winners and losers.
This was shown by the fall in shares in vaccine manufacturers after Robert F Kennedy Jr was nominated as health secretary, but such an effect may not last if the Senate rebuffs his appointment. When it comes to crypto, however, it is clear that there is a clear commitment throughout the incoming administration to provide a pro-crypto environment.