According to a research report from HTX Ventures, the trend of crypto companies departing the United States could be halted, and a significant number of them could be encouraged to pursue public listings if Donald Trump were to retake the presidency.
The report, released on Tuesday, implies that the industry would likely experience more lenient and transparent regulations under a Trump administration.
Concurrently, the SEC Chair, Gary Gensler, has implemented a stringent regulatory approach that has restricted the number of cryptocurrency IPOs in recent years under the presidency of President Biden.
In the interim, the Biden administration has implemented executive orders to establish regulations for the cryptocurrency market. It emphasizes the protection of consumers and the mitigation of risks associated with illicit financial activities and national security.
For instance, the Treasury Department has intensified its enforcement efforts against exchanges and implemented sanctions on platforms associated with criminal activities. This results in uncertainty for legitimate enterprises.
Funding Challenges for Crypto Firms in the Context of Strict US Regulations
Consequently, crypto companies need help in obtaining traditional institutional funding. Coinbase’s 2021 listing was cited in the study, which initially attracted numerous conventional funds to the crypto space, establishing crypto divisions.
Nevertheless, Coinbase is the sole cryptocurrency company on the Forbes 2024 Midas List.
In the meantime, the regulatory uncertainty in the United States is prompting several countries to emerge as attractive alternatives for crypto companies considering relocating. Dubai, in particular, has become a premier destination for digital asset enterprises.
Trump’s Bitcoin Reserve Plan Is Designed to Establish the United States as a Crypto Leader
Trump is currently advocating for crypto-related policies as he campaigns for the 2024 presidential election, representing a significant departure from his reservations regarding cryptocurrencies.
He expressed his aspiration for the United States to become a “Bitcoin superpower” by leading the world in crypto during a significant crypto event in Nashville.
He proposed that the government hold onto a Bitcoin reserve under his leadership, arguing that the US should retain any Bitcoin it possesses or may acquire.
Also, he proposed the establishment of a presidential advisory council for Bitcoin and crypto, which would consist of industry supporters rather than regulators who could be perceived as opposing the crypto industry.
On November 5, 2024, the United States will conduct its presidential election. The polls in various states will be open from 6:00 AM to 9:00 AM and shut between 6:00 PM and midnight EST. To date, more than 41 million Americans have voted early.
Trump’s prospects were recently estimated at 57.7% by Polymarket, while Harris’s were estimated at 42.3%. After a period in which Harris gained ground, this represents a modest recovery for Trump.
