Did crypto hand Donald Trump the White House?

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As a seasoned observer of political landscapes and technological advancements, I find the increasing influence of cryptocurrencies on the American political stage truly intriguing. Having spent years studying and participating in both fields, it’s fascinating to see how these two seemingly disparate worlds are converging.

To what extent did cryptocurrency play a role in the recent election? Was it possible that supporters of Bitcoin and blockchain technology played a significant part in Donald Trump’s re-election to the White House?

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A crypto-powered return to the White House

In the most recent election, Donald Trump secured a significant win by amassing 312 electoral votes, thereby regaining the presidency. Yet, what sets this victory apart isn’t merely the numerical results or political speeches – it’s the growing influence of cryptocurrency.

For the past twelve months, cryptocurrency has moved from being a specialized focus to a significant issue on the political platform, with pro-crypto contenders now occupying influential positions within Congress.

In the Senate, supporters of cryptocurrency won 18 positions, compared to 12 for opponents. Overall in Congress, more than double the number of pro-crypto representatives (266) were elected, while anti-crypto advocates accounted for just 120 seats.

It’s no accident that we’re seeing this change in opinion. As per a report by Grayscale published in September 2024, the level of public consciousness about cryptocurrency jumped to 53%, marking an increase from 47% in December 2023.

Indeed, a significant majority of 71% of voters believe it’s essential for political leaders to adopt innovative technologies such as blockchain, in order to maintain America’s competitiveness globally.

To highlight, 56% of the electorate expressed their preference for a candidate who is open to understanding cryptocurrency, which represents an increase from 48% in December of last year. These voting trends have been validated by the recent elections.

If Trump wins a second term with a Senate and Congress supportive of cryptocurrencies, some questions come to mind: How significant was the impact of cryptocurrencies on his election victory, and how could they shape his time in office? Let’s delve into what experts believe about crypto’s future under a potential Trump administration.

How crypto funding shaped key races

In a significant shift, cryptocurrency significantly contributed to Trump’s election win, evolving from a marginal sector into a potent political entity. By backing pro-cryptocurrency contenders nationwide, the industry wielded its influence, strategically donating funds and sponsoring ads in tight races across various states.

Throughout the nation, candidates backed by cryptocurrency made significant strides, as organizations such as Fairshake and Defend American Jobs invested approximately $135 million in over fifty key congressional elections.

In Ohio specifically, the Republican contender Bernie Moreno benefited significantly from $40 million worth of cryptocurrency-backed ad financing by pro-cryptocurrency political action committees (PACs). This financial backing contributed to his victory over Sherrod Brown, a Democrat who has been vocal about crypto regulation and serves as the chairman of the Senate Banking Committee.

The Political Action Committee (PAC) expanded its reach beyond Ohio, contributing funds to more than 50 different races. These races were significant not only in Ohio but also in Arizona, Indiana, and Maryland.

In West Virginia, DAJ’s $3 million campaign backing Republican Jim Justice, who is pro-cryptocurrency, successfully transformed a seat that was previously held by the Democrats into a win for the GOP. In the end, Justice secured a substantial victory with 69% of the votes cast.

In addition to the crypto sector, individuals such as Jim Banks from Indiana were backed. He managed to secure a Senate seat with an impressive 54% of the votes, largely due to strong support from advertisements funded by the cryptocurrency community.

Furthermore, it’s important to note that the backing wasn’t exclusive to pro-crypto Republicans. In New York, Senator Kirsten Gillibrand, a Democrat and a crypto supporter, was re-elected. This demonstrates that crypto support transcends political parties, suggesting that the industry isn’t solely affiliated with one.

Yet not every race went in crypto’ favor: in Massachusetts, Senator Elizabeth Warren, a well-known critic of crypto, won her third term despite her opponent John Deaton’s $2 million in industry backing.

By the time Election Day rolled around, I found myself analyzing the significant influence of cryptocurrency firms who collectively invested more than $50 million across various states, from California to Iowa. This strategic spending ensured that both Democratic and Republican candidates who held positive views towards cryptocurrencies received ample support.

Notably, the industry leaders also applauded the outcomes. Tyler Winklevoss, a co-founder of Gemini, commented, “The crypto forces are victorious,” in response to Moreno’s success.

In simpler terms, the pro-crypto group has made a significant move. Senator Sherrod Brown, considered an adversary of cryptocurrency by some, along with Elizabeth Warren and Gary Gensler, was defeated in the race for Ohio Senate by Bernie Moreno.

— Tyler Winklevoss (@tyler) November 6, 2024

For Coinbase’s Chief Legal Officer Paul Grewal, the night’s results showed that “crypto wins.”

Before the final outcomes are announced, it’s evident that crypto has secured a significant victory. With approximately 1.8 million Americans registering as advocates with @standwithcrypto and numerous R and D candidates endorsing pro-cryptocurrency policies, it’s obvious that the crypto community will play a decisive role in shaping these results.

— paulgrewal.eth (@iampaulgrewal) November 5, 2024

“Cryptocurrency emerged victorious across various ballots and garnered support from diverse political groups during this election.

Trump’s victory was bolstered by significant backing from influential figures in the industry, such as the Winklevoss twins, Marc Andreessen, and Ben Horowitz. Combined, they donated a total of $10 million, pushing Trump’s overall contributions from the industry to $22 million.

With victories of pro-crypto candidates and votes tallied, Bitcoin (BTC) soared beyond $75,000, hitting an all-time high of $76,940 on November 7, indicating growing investor trust in a more favorable political environment for cryptocurrencies.

As of Nov. 14, BTC is trading at $89,300 levels, with bullish sentiments intact.

Experts take on Trump’s victory

In order to examine the role that cryptocurrency might have played in Trump’s victory, our team at Crypto News sought the opinions of industry professionals for their valuable perspectives.

As stated by Nitin Gaur, co-founder and Chief Technology Officer of a clandestine company, this election signified the legitimate debut of cryptocurrency on the political scene.

According to Gaur, cryptocurrency emerged as a significant topic for voters, not merely because of its potential for campaign contributions, but rather as a means to mobilize a fresh type of voter who values ideas such as progress and individual liberty under the broader themes of innovation and personal freedom.

As a passionate crypto investor, I’m always grateful for influential figures who lend their support to our digital currency community. Personally, I appreciate the role players like Elon Musk and RFK Jr. have played in championing the cause of cryptocurrencies. Their endorsements have significantly contributed to the echoing of pro-crypto sentiments among voters, transcending traditional party lines.

According to Jacob Kronbichler, CEO of Clearpool, he highlighted the method used by Trump’s campaign to connect directly with cryptocurrency owners.

Trump gained support from the community by promising to move the 207,000 Bitcoins owned by the Department of Justice into the national Treasury, creating a strategic Bitcoin reserve.

This promise, combined with Trump’s stance in favor of DeFi, struck a chord with crypto enthusiasts who had grown wary of SEC crackdowns.

As the CEO of AMLBot, Slava Demchuk pointed out that Trump’s attention towards cryptocurrencies helped him broaden his support base, moving beyond the conventional conservative demographic.

Demchuk clarified that roughly one out of every seven American voters currently possesses cryptocurrency. Trump’s emphasis on this topic helped him resonate with a wide range of constituents – young adults, people from diverse ethnic backgrounds, and particularly men under the age of forty – who often feel overlooked in traditional political dialogues.

Furthermore, Demchuk posits that Trump’s close relationship with Musk served to boost his attraction within these communities, particularly on venues such as X, which cater to cryptocurrency advocates.

A new era? What Trump’s administration holds for crypto

As I, a researcher, look forward to the potential return of President Trump, I find myself sharing the optimism of industry leaders. They believe that his campaign pledges could usher in tangible advancements that may positively impact the realm of cryptocurrencies.

Kronbichler anticipates “more definitive guidelines” might be among the initial actions, given the potential for a more cooperative Congress and a pro-cryptocurrency presidency to address the uncertainties in law that have impeded DeFi and blockchain initiatives.

“He expressed that there will likely be increased expansion within the field of Decentralized Finance (DeFi) as regulatory restrictions lessen, a viewpoint that is commonly held within the industry.

Demchuk posits that the potential change of SEC Chair from Gary Gensler to someone else might mark a significant shift in the crypto sector.

He proposed that the Securities and Exchange Commission (SEC) could transition from scrutinizing to fostering cryptocurrency advancements. In other words, this change might involve the SEC assisting crypto companies in navigating the regulatory landscape instead of imposing challenges.

As a researcher, I’m currently delving into the realm of digital assets, and I must say that Will Adams, SVP of Partnerships at MatterFi, has shed some light on the future direction of cryptocurrency. His perspective is that Trump’s campaign has brought a clear vision for the U.S.’s role as a global leader in the digital asset sphere.

At present, according to the Securities and Exchange Commission’s (SEC) SAB-121 regulation, financial institutions categorize cryptocurrencies held in safekeeping as liabilities, which presents a significant hurdle for banks aiming to handle digital currencies.

“Removing those restrictions could prompt more retail interest in BTC.”

Adams proposed that banks might manage cryptocurrencies without encountering significant capital demands. These adjustments, he continued, could potentially boost interest in actively traded Bitcoin ETFs, as these already struggle for a limited Bitcoin supply.

Following the election, the cryptocurrency community’s reaction has been nothing short of electrifying. Michael Pospieszalski, CEO of MatterFi, observed an increase in confidence within the industry.

In the past 36 hours following the election, as he noted, the cryptocurrency world experienced a significant change. Transactions started flowing, venture capital funding became available, and there was a noticeable resurgence of excitement, which he referred to as the “Trump Effect.

In essence, Gaur stated that cryptocurrencies are likely to persist and significantly influence upcoming elections and the political landscape of the United States, potentially extending its impact beyond U.S. borders.

Currently, the sector is thriving, potentially entering a period of expansion, and possibly undergoing a significant transformation in the way cryptocurrencies are perceived and regulated nationally.

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2024-11-14 22:41