Unsurprisingly, the election of Donald Trump as President of the United States has taken crypto markets to new heights. In the days following the announcement Bitcoin has approached $90,000and all cryptocurrencies rode this upward wave. Ethereum, the second cryptocurrency by market capitalization, could benefit from Trump’s presidency following his pro-crypto stances.
- The election of Donald Trump as President of the United States has driven crypto markets to record highs, with Bitcoin approaching $90,000.
- A possible reduction in financial regulations under Trump could create a favorable environment for Ethereum and stimulate its development.
Will Trump’s Election Benefit Ethereum?
PUSH Trump’s victory in 2024 it is accompanied by a return to pro-entrepreneurial economic policy. Historically, these policies have tended to relax regulations and encourage investment. A dynamic that some observers see as positive for the crypto sector, especially for Ethereum, a leader in decentralized applications and DeFi.
Devcoin conference interview with our colleagues from Cointelegraph, Joe Lubinco-founder of Ethereum, said that this re-election could create a favorable environment for Ethereum.
“We have already seen a more favorable rebound for Ether (…) Therefore, Ethereum is ready to mine more than other protocols, especially since it is much larger and more mature than all other ecosystems, with the exception of Bitcoin, which is mature but narrow in scope. »
According to him, the reduction of financial regulations would allow companies and investors to freely venture into sectors such as decentralized finance on Ethereum.
In fact, while Bitcoin approaches $90,000, Ethereum also benefited greatly from this surge. Thus, the price of ETH has increased by 21% in the last 7 days. Thus, ETH rose from $2,300 on November 5th to $3,400 on November 12th.
Regulatory Changes: An Opportunity for Ethereum?
So the election of Donald Trump will probably mean a a major turnaround in cryptocurrency regulation in the United States. This will include, in particular, the reorganization of the SEC (Securities and Exchange Commission).
One of the most anticipated changes in the crypto community is indeed concerning the potential departure of Gary Gensler, the current SEC chairman.
Known for his rigid stance on cryptocurrencies, Gensler has often faced criticism for his rigid approach that has stifled innovation in the sector. His departure and the arrival of a more crypto-friendly replacement could ease the regulatory framework around crypto projects.
Position shared by Joe Lubin:
“A more flexible framework around cryptocurrency regulation would allow investors and businesses to innovate without fear of sudden crackdown”.
Other ambitious measures: creating a strategic bitcoin reserve in the United Statesa project relaunched by pro-crypto Senator Cynthia Lummis. Although the project is currently focused on Bitcoin, such a precedent could pave the way for the inclusion of other cryptocurrencies such as Ethereum.