How Donald Trump’s Return to the White House Could Boost the Crypto Market: Analysis and Predictions
In a recent note, Compass Point Research & Trading highlighted the potential benefits of Donald Trump’s pro-crypto stance for the cryptocurrency and digital asset sector. Trump’s acceptance of crypto donations and his discussions with crypto miners signal a positive outlook for the industry.
The incorporation of Trump’s pro-crypto stance into the Republican National Committee’s 2024 Platform, along with the selection of Senator J.D. Vance as his Vice-President candidate, further solidifies the potential for crypto-friendly legislation under a Trump/Vance administration.
The expectation that stablecoin legislation could lead the crypto movement in Congress is also complemented by bipartisan support for the Financial Innovation and Technology for the 21st Century Act (FIT21). The collaboration between Senate Agriculture Committee Chair Debbie Stabenow and House Financial Services Committee Chair Patrick McHenry on crypto regulation further indicates a favorable environment for comprehensive crypto legislation.
Compass Point’s analysts predict a better than 60% chance of comprehensive crypto legislation becoming law in the 119th Congress, with a Trump administration and a Republican-controlled Congress having a two-year window to pass such legislation. Additionally, a potential change in SEC leadership, with candidates like Hester Peirce being supportive of crypto, could lead to a more favorable regulatory environment for digital assets.
Overall, the potential for favorable crypto legislation under a Trump administration, combined with bipartisan support and potential changes in SEC leadership, could significantly impact the future of the crypto market and investors’ portfolios.