Trump Seen as Pro-Innovation Candidate by Crypto and TradFi Startups: Bitfinex
The highlight anticipated presidential debate between Donald Trump and Joe Biden did not feature any discussion about Bitcoin or crypto. This was notable given how much attention the industry has garnered this year.
Despite this, experts believe that if Trump were re-elected, it could signal a shift toward more favorable regulatory conditions for the crypto industry in the US.
Trump a Preferred Candidate?
In a statement to CryptoPotato, Bitfinex analysts highlighted Trump’s support for Bitcoin and other cryptocurrencies. They added that a Trump administration might focus on setting up a “clear and supportive” regulatory framework, that would involve promoting “innovation and investment” in the crypto sector.
This could result in increased adoption of digital assets and a stronger integration of cryptocurrencies into the financial system, potentially driving further growth in the industry.
Several industry players have publicly backed Trump including the Winklevoss twins who had recently expressed their support by donating $2 million in Bitcoin to his campaign. More recently, Kraken founder Jesse Powell, announced donating $1 million to the former President’s campaign.
Bitfinex analysts believe that such gestures “signifies a growing perception of Trump as a pro-innovation candidate within the crypto and traditional finance (TradFi) communities.”
Trump’s recent public endorsement of Bitcoin and acceptance of crypto donations for his campaign highlighted his shift from his critical stance during his presidency, and instead to a more favorable stance on digital assets. He also recently dubbed himself the “CryptoPresident.”
According to the latest data, Trump appears to be leading after a recent debate despite lacking any mention of crypto.
‘Trump Trade’
Bernstein analysts believe that crypto might become the primary ‘Trump Trade’ in the current election cycle as Republican prospects improve and their standard bearer increasingly embraces a pro-crypto stance.
Republicans view a favorable stance on the industry as a way to attract voters and secure campaign funding from super PACs that support pro-crypto politicians.
The original ‘Trump Trade’ referred to the simultaneous surge in US stocks, Treasury yields, and the dollar following Donald Trump’s victory in 2016.
“The Republican side sees crypto not just as a vote bank but also a meaningful source of funding. If the election sentiment shifts more Republican, crypto would end up as the primary ‘Trump trade’ and hopes of a favorable regulatory regime would change the ‘use-case’ narrative around blockchains.”
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