Donald Trump’s return to the White House will be a boon for the cryptocurrency and digital asset sector, Compass Point Research & Trading says in a recent note.
“He supports cryptocurrencies. His campaign accepts cryptocurrency donations,” the company emphasized.
Last month, Trump met with a group of cryptocurrency miners to discuss how the cryptocurrency industry can benefit U.S. energy production, distribution, artificial intelligence (AI) development and data centers.
The former president has also expressed a desire to have all (BTC) mining take place in the U.S. His pro-crypto stance was incorporated into the Republican National Committee’s Platform 2024, which pledges to end crypto repression and block the development of a central bank digital currency (CBDC). The platform also supports self-storage of crypto assets and BTC mining.
What’s more, he selected Senator J.D. Vance (R-OH) as his vice presidential running mate.
Vance, who previously campaigned on a pro-cryptocurrency platform, recently began circulating bills that would address cryptocurrency regulation by the Securities and Exchange Commission (SEC) and CFTC.
His bill is considered more industry-friendly than the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House of Representatives with broad bipartisan support. Vance also holds between $100,000 and $250,000 in BTC.
“The prospects for cryptocurrency legislation are improving significantly under the Trump/Vance administration. Trump could accelerate the passage of cryptocurrency legislation,” Compass Point noted.
Stablecoin legislation is currently expected to lead the crypto movement in Congress. However, Trump’s crypto-friendly approach, combined with bipartisan support for FIT21, signals that broader crypto legislation could be passed in 2025 or 2026.
Compass report finds bipartisan support is a key factor in improving the outlook for cryptocurrency policy.
Senate Agriculture Committee (SAC) Chairwoman Debbie Stabenow (D–MI) is circulating a crypto bill to give the CFTC authority over digital assets. While the text of the bill is not yet available, she aims to get it voted down by the committee before the August recess.
The move is seen as crucial to the bill’s prospects. Stabenow’s partnership with House Financial Services Committee (HFSC) Chairman Patrick McHenry (R-NC), who successfully passed FIT21 in the House, shows the potential for bipartisan cooperation on cryptocurrency regulation.
Compass Point says looking ahead, the Trump administration with a Republican-controlled Congress will have a two-year window until 2025 to pass cryptocurrency legislation.
The passage of FIT21 and Stabenow’s motivation to withdraw the bill from committee are evidence of a changing landscape that favors comprehensive cryptocurrency legislation.
“This change increases the chances of comprehensive cryptocurrency legislation passing in the 119th Congress. We put the odds at over 60% and will revisit this prospect after the November election,” Compass analysts said.
The change in administration would also likely bring a modern SEC chairman. Hester Peirce, a potential candidate for that position, supports cryptocurrencies, the memo emphasizes.
A change in SEC leadership could stem the tide of enforcement actions and speed up the resolution of pending cases, such as the SEC’s lawsuit against Coinbase (NASDAQ:). What’s more, it could bring an end to ongoing cryptocurrency investigations and create an opportunity for the SEC “to define the parameters for when digital assets are securities.”
