The re-election of Donald Trump has far-reaching implications for the crypto industry. Deep changes in regulatory and economic policy could take place during the new term. But what do Trump’s plans mean for digital assets, stablecoins and blockchain platform competition?
Bitcoin as a State Asset: The Plan for a National “Bitcoin Reserve”
Trump’s ideaa state-run one Bitcoin-Creating reserves could put the US in a leadership position in the global cryptocurrency competition. So far, only a few states have shown interest in creating a national Bitcoin reserve.
Implementation could protect the US from financial risks posed by rising national debt and increasing reliance on traditional currencies. However, Trump’s Bitcoin plan stands in stark contrast to the plans of other nations that are increasingly relying on state-controlled digital currencies, so-called Central Bank Digital Currencies (CBDCs).
Trump’s fight against central bank digital currency (CBDC)
Amid global discussions about CBDCs, Trump is taking a different approach. He has repeatedly criticized the idea of a digital central bank currency and questioned the advantages of such a system.
His position could also reflect the political and economic values of the United States, which emphasize individual financial freedom and limited government surveillance. This represents a rather positive outlook for the crypto community as the focus remains on decentralized and private assets.
SEC: The End of Gary Gensler
One of the most debated questions is how Trump’s re-election will affect the leadership of the SEC (Securities and Exchange Commission). Under Gary Gensler, the SEC recently took a hard line against cryptocurrencies.
If Trump restructures the SEC, it could mean an opening for new policies and a positive development for cryptocurrencies and companies in the blockchain space. Gary Gensler himself could remain as chairman since his term officially runs until 2026, but political observers believe that a leadership renewal under Trump is likely. Dan Gallagher is considered a potential candidate.
Solana vs. Ethereum: The Emerging Competition in the Smart Contract World
With less strict regulation, Solana, the third largest blockchain by market capitalization, could become more attractive. Ethereum was previously the only platform with its own spot ETF, but with new guidelines Solana and other platforms could also gain access to institutional investors. These changes would promote strong competition, which could accelerate innovation in the field of decentralized applications.
Tether (USDT) and Circle (USDC): The influence on the stablecoins
Tether could be a clear winner of Trump’s re-election. The collaboration with Cantor Fitzgerald and the support of CEO Howard Lutnick, a key Trump ally, offers Tether a stronger position. The ongoing investigations into Tether could become less intense under Trump. Circle, on the other hand, the publisher of the USDCStablecoinscould face new challenges as Tether continues to expand its dominance.
Growth Opportunities for Altcoins
Not only major cryptocurrencies like Bitcoin could benefit from Trump’s election, but also smaller altcoins and DeFi projects. Looser regulation could allow decentralized finance projects (DeFi) like Uniswap increase in value. Analysts see the possibility that the US could become a global DeFi hub if the regulatory framework is clarified and a more stable environment for startups is created.