Foreign crypto firms might be the only losers under a second Trump presidency: Bloomberg News โธ US โธ Election 2024
Foreign crypto firms might be the only losers under a second Trump presidency: Bloomberg
From crypto exchanges planning an IPO to Bitcoin miners, nearly every U.S. crypto firm will likely benefit from Trumpโs win.
3 min read
Updated: Jul. 21, 2024 at 10:05 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The crypto industry is holding its breath for a second Donald Trump presidency since the former president has vowed to end President Joe Bidenโs โcrusade against crypto.โ
Trump’s odds of winning the U.S. elections in November have been on the rise since his failed assassination attempt last week. According to a poll released by CBS News this week, 52% of voters are likely to favor Trump for a second presidency.
However, while the crypto industry waits with bated breath, it may not be good news for overseas crypto firms. Foreign crypto exchanges like Binance, OKX, and Deribit may feel a pinch in their market shares as their U.S. peers thrive under a Trump tenure, Bloomberg reported on Sunday.
These overseas exchanges had seen their market shares rise as their U.S. rivals had to shutter or forego the launch of some of the most popular crypto services. With more crypto-friendly regulation, as Trump has promised, U.S. exchanges could launch trading services with more leverage or crypto futures and options contracts with more expiration dates.
Bitmain, the largest manufacturer of Bitcoin mining machines, could also face challenges under a potential Trump presidency. Most U.S.-listed Bitcoin miners currently use mining rigs from the Chinese conglomerate. U.S. rivals like Block and Auradine selling new chips and machines to Bitcoin mining companies will further add to the challenges in store for Bitmain.
Nearly every U.S crypto firm will benefit from a Trump presidency
Market participants and observers believe that nearly every U.S. crypto firm is set to benefit from a second Trump presidency. Earlier this week, Jefferies analysts stated that Trumpโs โovert supportโ for Bitcoin and crypto could benefit crypto stocks.
Christian Catalini, founder of MIT Cryptoeconomics Lab, told Bloomberg:
โAlmost everyone in the US would be a winner if they are willing to operate by the new rules when implemented.โ
The potential winners include Bitcoin miners as well as crypto firms who faced challenges while trying to go public in the U.S.
In June, Trump held a meeting with Bitcoin miners, following which, he posted on his Truth Social account that Bitcoin miners would be โour last line of defense against a CBDC [central bank digital currency].โ He added that his ambition is to ensure that all remaining Bitcoins are โMADE IN THE USA!!!โ
Under Bidenโs presidency and Gary Genslerโs leadership of the U.S. Securities and Exchange Commission (SEC), crypto firms have had less success in pursuing an Initial Public Offering (IPO). USD Coin (USDC) stablecoin issuer Circle, for instance, scrapped its plans to go public over a year ago, but subsequently filed for an IPO in January 2024.
Kraken, the second largest U.S. crypto exchange, and crypto miner-turned artificial intelligence computing provider, Northern Data, have plans for an IPO in the works. Under a Trump presidency, these firms could finally get the green light for listing, especially since the former president is expected to replace Gensler with someone more crypto-friendly.
It is worth noting that Kraken founder Jesse Powell has donated $1 million to Trumpโs campaign. Powell, however, is one of the many in the crypto industry supporting Trumpโs re-election bid.
Crypto exchanges, which have increasingly faced banking challenges amid tighter regulations, may see their pool of banking options expanding as regulations ease under Trump.
Furthermore, Trump has vowed never to allow the issuance of a digital dollar โ a good news for the crypto industry, which sees a CBDC as a potential way for the government to expand financial surveillance. In February, Trump called CBDCs a โvery dangerous thing.โ
Bitcoin Market Data
At the time of press 10:05 pm UTC on Jul. 21, 2024, Bitcoin is ranked #1 by market cap and the price is up 0.83% over the past 24 hours. Bitcoin has a market capitalization of $1.34 trillion with a 24-hour trading volume of $25.65 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:05 pm UTC on Jul. 21, 2024, the total crypto market is valued at at $2.47 trillion with a 24-hour volume of $63 billion. Bitcoin dominance is currently at 54.26%. Learn more about the crypto market ›
Mentioned in this article
Author 
Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
Latest US Stories
Featured Story
Advertise Here
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.
Joe Biden, byname of Joseph Robinette Biden Jr., is an American politician and the 46th and current president of the United States.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.