The highly anticipated presidential debate between Donald Trump and Joe Biden did not include any discussion on Bitcoin or cryptocurrencies. This is noteworthy considering the amount of attention the industry has received this year.
Nevertheless, experts believe that if Trump is reelected, it could signal more favorable regulatory conditions for the US cryptocurrency industry.
Is Trump the preferred candidate?
In a statement to CryptoPotato, analysts from Bitfinex highlighted Trump’s support for Bitcoin and other cryptocurrencies. They added that the Trump administration may focus on establishing a “clear and supportive” regulatory framework, including promoting “innovation and investment” in the cryptocurrency industry.
This could lead to greater adoption of digital assets and stronger integration of cryptocurrencies with the financial system, potentially driving further industry growth.
Some industry participants have publicly expressed their support for Trump, including the Winklevoss twins, who recently donated $2 million worth of Bitcoin to his campaign, demonstrating their endorsement. Recently, Jesse Powell, the founder of Kraken, announced a $1 million donation to the former president’s campaign.
The Bitfinex analysts believe this gesture “indicates that the cryptocurrency and traditional finance (TradFi) communities increasingly see Trump as a candidate supportive of innovation.”
Trump has recently publicly endorsed Bitcoin and accepted cryptocurrency donations for his campaign, indicating a shift from his critical stance during his presidency to a more favorable position towards digital assets. He has recently referred to himself as the “Cryptocurrency President.”
According to the latest data, despite not mentioning cryptocurrencies, Trump seems to be leading after a recent debate.
“The Trump Trade”
Analysts at Bernstein believe that with the improving prospects of the Republican Party and their frontrunners increasingly supporting cryptocurrencies, it could become the main “Trump Trade” in the current election cycle.
Republicans view the industry’s favorable stance as a way to attract voters and as a means for super PACs supporting cryptocurrency-friendly politicians to obtain campaign funds.
The initial “Trump Trade” referred to the simultaneous surge of the US stock market, bond yields, and the dollar after Donald Trump’s victory in 2016.
“The Republican side sees cryptocurrencies not only as a voting bank but also as a meaningful source of funding. If the election sentiment becomes more Republicanized, cryptocurrencies will eventually become the primary ‘Trump Trade,’ and hopes for favorable regulatory systems will change the narrative surrounding blockchain use cases.”