Here is How Trump’s Presidency Could Affect the Crypto Industry

The crypto industry is closely watching the potential for a second Donald Trump presidency as he vows to end President Joe Biden's so-called crusade against cryptocurrencies.

While the U.S. crypto industry looks forward to possible favorable changes, it could mean trouble for foreign crypto companies. According to Bloomberg, foreign exchanges such as Binance, OKX and Deribit could experience a decline in market share, with their American counterparts likely to thrive under a Trump administration.

These foreign platforms had previously gained market share as U.S. exchanges were forced to shut down or abandon the launch of popular crypto services. With Trump’s promise of more favorable crypto regulations, U.S. exchanges may expand their offerings, including increased leveraged trading services or additional crypto futures and options contracts.

Analysts and market participants believe almost all US crypto companies could benefit from a Trump presidency.

Christian Catalini, founder of MIT’s Crypto Economics Lab, said:

Almost everyone in the US will be profitable if they are willing to work under the new rules when they are implemented.

Under the Biden administration and Gary Gensler’s leadership of the US Securities and Exchange Commission (SEC), crypto companies have had limited success in initial public offerings (IPOs). For example, stablecoin issuer USD Coin (USDC) Circle abandoned plans to go public more than a year ago, but refiled for an IPO in January 2024.

Kraken, the second largest crypto exchange in the US, and Northern Data, an AI computing provider turned cryptomining company, are also planning IPOs. It may be easier for these companies to go public under a Trump administration, especially if he replaces Gensler with a more crypto-friendly figure.

Crypto exchanges that face banking challenges due to tighter regulations may see banking opportunities expand as regulations potentially ease under Trump.

He has also promised to block the issuance of a digital dollar, a move welcomed by the crypto industry, which views CBDC as a potential tool for increased government financial surveillance.