The 2024 U.S. presidential election, with Donald Trump’s victory, has had notable effects on the cryptocurrency landscape. Trump has historically expressed openness to the cryptocurrency industry, and his return to office signals a shift toward more crypto-friendly policies. His administration has already indicated plans to reform regulations that have long been perceived as restrictive under the previous administration, such as reducing the influence of the SEC in overseeing digital assets. For instance, Trump has promised to replace SEC Chair Gary Gensler, a staunch crypto skeptic, and instead install regulatory leadership that aligns with industry priorities​.

The election also saw unprecedented engagement from the crypto sector in shaping political outcomes. Crypto-focused super PACs reportedly spent over $130 million to support pro-crypto candidates, securing victories for several key lawmakers aligned with the industry. This has increased optimism that legislative reforms, such as defining cryptocurrencies as commodities rather than securities, could move forward. Some even speculate about initiatives like a “strategic Bitcoin reserve” becoming a reality under this administration​.

However, the crypto market’s reaction has been mixed. While Bitcoin reached record highs following the election, fueled by expectations of favorable policy, concerns remain about the broader economic implications of such deregulation. Critics argue that an overly permissive regulatory environment could increase financial instability. Nonetheless, Trump’s win is seen as a pivotal moment for integrating cryptocurrencies more deeply into the U.S. financial system​.