Published: November 08, 2024 at 5:01 am
Updated on December 10, 2024 at 7:38 pm
It looks like the crypto industry just pulled off a major political coup in the U.S. elections. With over 250 pro-crypto candidates winning seats, it’s safe to say this industry is flexing some serious muscle. But before we get too carried away, let’s break down what this really means for crypto trading in the U.S., consumer protection, and maybe even global perceptions of our market.
According to Stand With Crypto (SWC), a group that’s about as neutral as a referee at a wrestling match, 261 candidates who support crypto got elected. That’s up from just 116 anti-crypto folks. And it’s not just the House; the Senate is looking pretty friendly too, with 17 pro-crypto senators.
What’s wild is that SWC claims the industry dumped around $200 million into these elections—$204 million into their own super PAC and almost $3 million directly into SWC. Talk about buying influence! One of the big wins was Republican Bernie Moreno in Ohio, who booted out an anti-crypto Democrat. Seems like crypto money talks!
Now here’s where things get dicey. A House full of crypto advocates could mean less oversight—like, way less. Trump has already said he wants to kick out Gary Gensler from the SEC, and let’s be real: Gensler has been the watchdog keeping some order in this chaotic space.
With no one watching the henhouse, are we setting ourselves up for another FTX or Terra Luna situation? Those collapses were catastrophic for many investors and shook public trust.
And let’s not forget how more Americans getting into crypto—without any regulatory guardrails—could turn into a recipe for disaster. More participants could mean more volatility… and more panic when things go south.
Then there’s Trump himself, who seems to have his own agenda with World Liberty Financial—a venture that sounds like something straight out of a “how to manipulate markets” playbook. His personal stake raises some eyebrows about potential conflicts of interest.
And let’s not overlook how lobbyists are pushing to move crypto regulation from the SEC to the Commodity Futures Trading Commission (CFTC). This smaller agency might not have as stringent consumer protections in place, which could leave us all exposed.
So what does all this mean? On one hand, clearer regulations might pave the way for institutional investment and stability—if they’re done right. But on the other hand, we might be witnessing a deregulation free-for-all that could end badly for consumers.
As someone who’s been around various markets long enough to remember past cycles (and crises), I’m cautiously optimistic but mostly skeptical about this new political landscape.
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