The US Election

Recent US political developments

In the wake of the US election, crypto is undergoing a tectonic shift. The market has experienced notable upward momentum in the past week.

With the Republican sweep, the market responded positively. For the first time in history the asset class has political momentum on its side.

The digital asset industry was hailed as one of the biggest winners of the election, with crypto-supportive candidates elected from both sides of the aisle. Congress welcomed more senators with supportive crypto policies than ever before, and 257 pro-crypto candidates were elected to the House. These members have advocated for clearer regulation, the adoption of blockchain technology, and a more favorable environment for innovation in the digital asset space.

One of the most notable outcomes of this election was Sherrod Brown losing his Senate race. As Chair of the Senate Banking Committee, he was instrumental in overseeing what many called 'Operation Chokepoint,' a series of restrictive measures on the crypto industry. His departure is likely to ease some regulatory pressure and open the door for more favorable developments for digital assets. Also of note, with the change of administration, SEC Chairman and crypto critic Gary Gensler is likely to resign.

The executive branch now has the full support of bitcoin and crypto as well. Developments are ongoing, but Senator Cynthia Lummis introduced a bill to make bitcoin a strategic reserve asset, which the newly elected Trump administration is likely to support.

Solana and Ethereum have outperformed, both up more than 25% through the first two weeks of November. Bitcoin has also regained momentum, hitting new all-time highs.

The excitement in the market is palpable—from the recent election results to industry sentiment. Detroit this week became the largest US city to enable local tax payments via crypto. Cartwright, a UK pensions specialist, confirmed that it guided the first pension fund into bitcoin. As Coinbase CEO Brian Armstrong wrote last week: “Crypto should be supported by both sides, as should any important new technology or industry that is driving American prosperity.” A growing belief in the potential of digital assets is becoming more entrenched within traditional financial systems.

For the first time, we have a constructive environment for what the digital asset class promises to become.