A New Era for Crypto Companies with Potential Trump Victory
The prospect of a second presidential term for Donald Trump is being met with enthusiasm by participants in the digital asset industry. American firms stand to gain comprehensive support from the new administration, according to experts. However, Bloomberg analysts warn that several foreign companies might face significant pressure from the authorities.
Recently, experts have increased the odds of entrepreneur Donald Trump winning the upcoming U.S. presidential election. Many representatives of crypto companies have expressed support for the politician, hoping for a change in the government's rhetoric towards the industry should he return to the White House, Bloomberg reports.
The authors of the article share the enthusiasm of the digital asset market participants. In their opinion, Bitcoin miners, cryptocurrency exchanges, and other industry representatives have every right to expect favorable treatment from the government if Trump wins.
Moreover, the media believes that cryptocurrency companies intending to go public through initial public offerings (IPOs) will receive a noticeable boost. Journalists cited Circle, the issuer of the USDC stablecoin, as an example.
At the beginning of 2024, the company officially confirmed the submission of an IPO application to the U.S. Securities and Exchange Commission (SEC). The authors believe that a change in U.S. administration will expedite the approval process for these documents.
Another firm associated with an IPO is Bitcoin miner Northern Data. Bloomberg representatives previously reported that the company is negotiating a public offering for its cloud computing and data center business. The estimated value of these divisions could reach $16 billion, according to the media.
However, Trump's presidency could not only support the industry but also create problems for certain companies, the publication suggests. The focus is on foreign platforms that compete with American firms. The authors argue that cryptocurrency exchanges Binance, OKX, and Deribit might lose a share of the global market due to pressure from the new U.S. administration and the rapid development of competitors capable of increasing trading volumes, Bloomberg asserts.
Special attention is given to the Chinese mining equipment supplier Bitmain. Despite its dominant position in its segment, the company might suffer from Trump's trade confrontation with China, the media speculates.
Additionally, the authors believe that the new administration might create further challenges for Bitmain due to Trump's ambition to "mine all remaining Bitcoins in the U.S." Although technically impossible, any attempt by Trump to redistribute the market could negatively impact the Chinese manufacturer.
It is worth noting that Donald Trump has considered appointing crypto-skeptic Jamie Dimon as Treasury Secretary.
