Impact of 2024 US Elections on Crypto Market: Trump’s Policies and Industry Outlook

According to Cointelegraph: The cryptocurrency market experienced a notable surge following Donald Trump’s victory in the 2024 U.S. presidential election, as analysts anticipate his administration’s pro-crypto stance could shape the future of the industry. A report by HTX Ventures, published by Cointelegraph Research, explores how Trump’s proposed policies might impact Bitcoin, stablecoins, and the broader crypto sector in the years ahead.Crypto as a Key Election Topic in 2024Cryptocurrencies emerged as a prominent topic in the 2024 election, with significant policy concerns driving the discussion. The U.S.’s growing federal debt, amplified by inflation concerns, has increased interest in Bitcoin as a hedge against economic instability, especially among the working class. Additionally, stablecoins now hold significant amounts of U.S. Treasury securities, integrating further into the American financial system. This trend was supported by a national Grayscale survey indicating that over half of voters were inclined toward pro-crypto candidates.Trump’s Pro-Crypto PromisesThroughout his campaign, Trump expressed strong support for the digital asset sector, proposing initiatives like creating a “Strategic Bitcoin Stockpile” and establishing a Crypto Presidential Advisory Council. He also vowed to appoint a pro-crypto chair to the Securities and Exchange Commission (SEC) and promised a more relaxed regulatory environment for crypto companies, allowing them to develop without the risk of stringent oversight.Trump’s stance has already impacted the market, driving interest in prediction markets like Polymarket, which saw a significant volume of election-related wagers. Polymarket’s success highlights the demand for decentralized finance (DeFi) platforms in traditional financial spaces, with its data now featured on major media platforms, including Bloomberg Terminal.Outlook for Crypto Companies and Regulatory ChangesTrump’s administration could potentially reverse the trend of crypto companies relocating outside the U.S. due to regulatory challenges. A relaxed policy environment may encourage major players like Circle, Kraken, and eToro to pursue initial public offerings (IPOs) in the coming years. In addition, BTCFi, a DeFi subset focused on Bitcoin financial tools, is expected to thrive under pro-crypto regulations, solidifying Bitcoin’s foundational role in decentralized finance.