What was expected to be a highlight of the presidential debate between Donald Trump and Joe Biden did not feature any discussion of Bitcoin or cryptocurrencies, which is notable given how much attention the industry has received this year.
Nevertheless, experts believe that a Trump reelection could signal a shift towards more favorable regulatory conditions for the U.S. cryptocurrency industry.
Is Trump a likely candidate?
In a statement CryptoPotatoBitfinex analysts highlighted President Trump’s support for Bitcoin and other cryptocurrencies. They added that the Trump administration is likely to focus on creating a “clear and supportive” regulatory framework that includes encouraging “innovation and investment” in the cryptocurrency space.
This is likely to increase the adoption of digital assets and strengthen the integration of cryptocurrencies into the financial system, stimulating further growth of the industry.
Some industry figures have openly supported Trump, including the Winklevoss twins, who recently showed their support by donating $2 million in Bitcoin to the Trump campaign, and more recently, Kraken founder Jesse Powell announced he would donate $1 million to former President Trump’s campaign.
Bitfinex analysts believe such actions “signal a growing perception within the crypto and traditional finance (TradFi) communities that Trump is a pro-innovation candidate.”
President Trump’s recent public endorsement of Bitcoin and acceptance of cryptocurrency donations for his campaign highlights a shift in his stance towards digital assets from a critical one during his presidency. Trump recently dubbed himself the “CryptoPresident.”
The latest data shows that Trump appears to be leading, even though cryptocurrency was not mentioned at all in the recent debates.
“Trump Trade”
Bernstein analysts believe that with the Republican Party’s improving prospects and its standard-bearer taking an increasingly pro-crypto stance, crypto could become a major “Trump trade” in the current election cycle.
Republicans see a positive stance toward the crypto industry as a way to attract voters and secure campaign contributions from super PACs that back pro-crypto politicians.
The original “Trump Trade” referred to the simultaneous surges in U.S. stocks, Treasury yields, and the dollar that occurred after Donald Trump’s victory in 2016.
“Republicans see cryptocurrencies not just as a vote-buying powerhouse, but also as a significant source of funding. If electoral sentiment shifts Republican, cryptocurrencies could end up becoming a major ‘Trump trade,’ and hopes for a favorable regulatory regime could change the ‘use case’ narrative around blockchain.”
