Bloomberg: Foreign crypto companies may be the only losers under Trump's presidency

Source: Blockchain Knight

The crypto asset industry is looking forward to Trump's second presidential election since Trump vowed to end Biden's "crusade against crypto assets."

After last week's assassination attempt, Trump's chances of winning the US election in November have been rising.

According to a poll released by CBS News this week, 52% of voters are likely to support Trump's second presidential election.

However, while the crypto asset industry is holding its breath, this may not be good news for overseas crypto asset companies.

As their American counterparts thrive during Trump's term, the market share of foreign crypto asset exchanges such as Binance, OKX and Deribit may be squeezed, Bloomberg reported on Sunday.

The market share of these overseas exchanges has risen as American competitors have had to close or give up launching some of the most popular crypto asset services.

Meanwhile, with Trump’s promised more friendly regulation for Crypto assets, U.S. exchanges could launch trading services with higher leverage, or futures and options contracts for Crypto assets with more expiration dates.

Bitmain, the largest BTC mining manufacturer, could also face challenges during Trump’s potential presidency.

Currently, most U.S.-listed BTC miners use mining machines produced by the Chinese conglomerate. U.S. competitors such as Block and Auradine selling new chips and machines to BTC mining companies will further increase the challenges facing Bitmain.

Market participants and observers believe that almost all U.S. Crypto asset companies will benefit from Trump’s second presidency.

Earlier this week, analysts at Jefferies said that Trump’s “public support” for BTC and Crypto assets could benefit Crypto asset stocks.

Christian Catalini, founder of the MIT Crypto Economics Lab, said: "Almost everyone in the United States will be a winner if they are willing to operate under the new rules after implementation."

Potential winners include BTC miners and Crypto Asset companies that face challenges when trying to go public in the United States.

In June, Trump held a meeting with BTC miners, and later posted on his Truth Social account that BTC miners would be "our last line of defense against CBDC (central bank digital currency)."

Trump also added that his ambition is to ensure that all remaining BTC are "Made in the United States."

Crypto Asset companies have been less successful in seeking initial public offerings (IPOs) during Biden's presidency and Gary Gensler's leadership of the U.S. Securities and Exchange Commission (SEC).

For example, Circle, the issuer of the USDC stablecoin, canceled its IPO plans more than a year ago, but then filed for an IPO in January 2024.

Kraken, the second largest crypto asset exchange in the United States, and Northern Data, which transformed from a crypto asset miner to an artificial intelligence computing provider, are also planning to go public.

These companies may finally get the green light to go public during Trump's presidency, especially as the former president is expected to replace Gensler with someone more friendly to crypto assets.

It is worth noting that Kraken founder Jesse Powell donated $1 million to Trump's campaign, and Powell is one of many people in the crypto asset industry who support Trump's re-election campaign.

Crypto asset exchanges are increasingly facing banking challenges amid tighter regulations, and their banking options may expand under Trump's leadership as regulations are relaxed.

In addition, Trump has vowed not to allow the issuance of a digital dollar, which is good news for the Crypto asset industry because the industry sees CBDC as a potential way for the government to expand financial surveillance.

In February of this year, Trump said that "CBDC is a very dangerous thing".