The 2024 US presidential elections saw Donald Trump winning at the polls over Vice President Kamala Harris and other candidates. In this piece, DWF Ventures shares valuable insights on how Trump’s (the “pro-crypto” candidate) win in the election will impact the crypto industry.
First, the Web3 venture capital (VC) describes Donald Trump as “the most crypto-friendly president to date has been elected” in a post on X.
During his campaigns, Trump promised to improve the crypto situation in the US. Even before he was officially announced as the winner, the crypto industry was abuzz as Bitcoin and other crypto tokens were bullish and breaking all-time highs.
In addition, DWF Ventures highlights that most senators who won Congress seats were pro-crypto. The VC further elucidated how this development is advantageous to the crypto industry. “This is promising for potential changes to crypto-related regulations and measures,” said DWF.
DWF: Expected Changes and Market Implications on Crypto
A Proposed Bitcoin Reserve
At the Bitcoin2024 Conference earlier this year, Donald Trump proposed reserving the US’ Bitcoin holdings. A few days later, Senator Cynthia Lewis (Senator for Wyoming) advanced a bill to create a strategic Bitcoin reserve.
Notably, DWF Ventures highlights that such a move would drive mainstream adoption of Bitcoin while boosting the public’s confidence in cryptocurrency.
Passing the FIT 21 Bill
The FIT 21 bill will define regulatory guidelines for digital assets in the US. Accordingly, this bill will classify them as restricted or as digital commodities, define the roles of regulators like the SEC and outline all regulatory requirements.
For context, this would liberate some crypto exchanges from some inquisitions by regulators. “This would directly impact the SEC’s investigation into Uniswap being an unregulated securities exchange,” said DWF.
Potential Impact on DeFi Protocols
According to the VC, DeFi protocols would perform fee switches– changing the token used for paying fees on the DeFi platform. Meanwhile, DWF cites that this is advantageous as there’ll be no more fear of regulatory conflicts surrounding fee switches.
DWF also mentions Ethena Labs, a DeFi protocol. “A governance proposal for an Ethena Labs fee switch has already been submitted, and we will likely see other top protocols follow suit,” said DWF.
Meanwhile, the VC also analysed the recent price action in the DeFi market. DWF Ventures believes the market is already pricing in the possibility of a new regulatory regime, leading to a potential “resurgence” of the DeFi sector.
ETF Boost and Bullish Memecoins
DWF highlights the recent surge in BTC and ETH ETFs, seeing record-breaking inflows following the impact of the election.
In addition, the VC mentioned the recent filing for a Solana ETF for Canary Capital. DWF Ventures believes this will provide strong tailwinds for $SOL, Solana-based memecoins, and the entire Solana ecosystem. They also express interest in monitoring the performance of SOL/ETH in the “longer timeframe post-ETF launch.”
In Conclusion
DWF Ventures is excited about all the ongoing and potential impacts of the election on the crypto industry. “We at DWF Ventures are excited for where crypto will go in the coming year with new leadership, though it might take time to play out,” said the VC on X.