Trump’s Return Could Bring Crypto-Friendly SEC and Banking Committee

Key Points:

• Bernstein predicts a crypto-friendly SEC shift with Trump’s victory and Republican Senate control, driving regulatory clarity for digital assets.
• Faster progress on stablecoin and market structure bills will benefit issuers like Circle and Paxos, as well as major U.S. crypto exchanges.

Bernstein said in a new research note that the result of the US presidential election 2024 is likely to bring about more transparent regulation of digital assets crypto-friendly SEC.

Trump’s Victory Expected to Boost Crypto-Friendly SEC Regulations

Analysts have forecast that if Donald Trump were to win the presidency and the Republican Party is looking likely to take control of the Senate, then the Securities and Exchange Commission and the Senate Banking Committee would become more crypto-friendly, potentially ushering in a “new regime” for crypto-friendly SEC rulemaking.

Bernstein noted that this “transformational shift” is not yet priced into markets and that the crypto sector could benefit significantly from the next government being Republican. In particular, stablecoin and market structure bills are expected to move more quickly. Beneficiaries would include Circle and Paxos, leaders among stablecoin issuers, big US crypto exchanges and brokers/dealers.

Read more: Trump Poll Reaches 210, Sending Bitcoin to Record $75K

Clarity on Digital Assets Likely to Drive Market Growth

The report also included updates on current court cases between the SEC and other major crypto players, including Coinbase, Robinhood, Binance, and several DeFi and stablecoin firms. Bernstein said he thinks that in the medium term, there will be more clarity on what constitutes a digital asset versus a security; this will enable a more progressive registration of digital asset securities with the SEC, which allows for much-needed regulatory certainty in the market.

Bernstein also projected that there could be a potential rerating of the more significant crypto assets, where uncertainty around their classification has weighed on them. The report also hinted that asset managers would most likely launch more crypto-based ETF products shortly.