Key Takeaways
Cryptocurrency assets have surged in the week since Donald Trump was re-elected President, as the industry looked ahead to what Coinbase ( COIN ) CEO Brian Armstrong on Tuesday called the "dawn of a new crypto era."
The industry poured hundreds of millions in donations to candidates and advertising during the election cycle, according to reports and data from nonprofit watchdogs Public Citizen and OpenSecrets.
Bitcoin ( BTCUSD ) has soared more than 25% since election day, hitting a string of record highs over the last week . Here's a look at what the industry is likely hoping for in a second Trump term.
A Shakeup at the SEC
The crypto industry is hoping Trump will follow through on his promise to replace Gary Gensler as the head of the Securities and Exchange Commission (SEC) .
Gensler has been criticized by crypto executives for the agency's scrutiny of the industry. Crypto advocates have charged the SEC and the Commodity Futures Trading Commission (CFTC) , another federal regulator, with inconsistently and punitively enforcing federal laws.
Gensler's term lasts until 2026, and experts are divided on whether Trump could legally dismiss him, but it's also possible Gensler will follow the lead of past chairs and step down during the administration change.
New Crypto Legislation
Armstrong told CNBC Tuesday that the Congress that will be sworn in next January should be the "most pro-crypto Congress ever," which could give the industry "some regulatory clarity."
With more than a dozen races left to call, neither party had clinched a majority in the House of Representatives as of Tuesday. Though a majority in the Senate and the White House could allow Republicans to pass legislation favorable to the crypto industry even without control of the House.
The House of Representatives in May passed the Financial Innovation and Technology for the 21st Century Act (FIT 21) with substantial bipartisan support. The Senate has not taken up the bill due to objections from Senate Banking Committee Chair Sherrod Brown (D-OH) and others concerned about anti-money laundering provisions.
Brown lost his re-election bid last week after crypto super PAC Defend American Jobs spent more than $40 million in support of his opponent, Republican Bernie Moreno, according to OpenSecrets. Brown's loss is one of several that will give Republicans a 53-seat majority in the Senate come January.
A Friendlier Regulatory Environment
Robinhood (
HOOD
) CEO Vlad Tenev told
CNBC
Tuesday he thinks the SEC's policy of "
regulation by enforcement
" under Gensler has "pushed a lot of the really interesting innovation" in the crypto industry overseas, which could change under new SEC leadership. He said a Trump administration is likely to have a "much more forward-looking policy" toward the crypto industry.
Armstrong also said that a new legislative and regulatory approach could support the creation of new cryptocurrencies and open them up to new uses. Companies, he said, could issue coins to raise capital, much like they would issue stock or bonds. Crypto, he forecast, is "going to be the next version of the stock market."
Coinbase on Tuesday launched the Coinbase 50 Index, which will track the price of the 50 most valuable cryptocurrencies on Coinbase, similar to a traditional stock market index like the S&P 500. At launch, the index is heavily weighted toward the largest two cryptocurrencies, Bitcoin and Ethereum ( ETHUSD ), and will be rebalanced every quarter.
