The Crypto Lobby's Success: Deregulation During Trump's Presidency

Regulation and Compliance
1

It’s alarming to observe that the cryptocurrency lobby has effectively triumphed, showcasing once more that corruption and unethical practices are tolerated if they generate profits. This victory could cement cryptocurrencies as a legitimate financial asset, though I doubt it will gain the same widespread acceptance it had during the surge in 2020. While the organic public interest seems diminished, I believe cryptocurrencies will persist despite ongoing illicit activities.

  1. The crypto lobby has successfully influenced 90% of local elections by investing large sums in advertising for opposing candidates. Crypto PACs have emerged as the most impactful political action committees this election season and are expected to maintain their influence in closely contested swing states. Their power has prompted both political parties to seek their favor rather than pursuing prosecutions, culminating in even a crypto investor becoming a Senator. They are likely to accumulate even greater wealth by the next election.

  2. The SEC may face significant cuts, with cryptocurrencies no longer classified as a security. Anticipate the removal of Gary Gensler as the agency’s head, resulting in regulatory oversight being shifted to the CFTC with compromised leadership.

  3. Wealthy cryptocurrency holders will likely pressure Trump to legitimize crypto as a viable asset class for major banking institutions and pension funds, potentially channeling hundreds of billions into the market, which could enhance its credibility and benefit asset owners.

  4. Notably, Trump is supported by technology-minded libertarians from Silicon Valley, who are reshaping the Republican party’s influence, including figures like Elon Musk and JD Vance.

  5. It’s uncertain whether the Department of Justice will continue its probe and legal actions against Tether—an easy settlement might be on the horizon under Trump’s administration.

Ultimately, this has little to do with the practical use of cryptocurrencies, which remains minimal; however, the market’s valuation of a financial asset often has little correlation with its actual utility.

2

Wow, that’s a pretty deep dive into the political influence of the crypto lobby! I’m curious about how crypto regulations (or deregulations) could shape the future of financial markets. Do you think this push for legitimacy through deregulation might encourage new technological innovations within the crypto space, maybe even spur on its practical use more than we’re seeing now? It seems like there’s a tension between the legal battles and the desire for innovation. Would love to hear more about how you think this balance might play out! :thinking:

3

crypto might get more credibility if they find ways to reduce energy consumption during mining. a shift to sustainable practices could attract more positive attention. it’s interesting to think if these deregs will push big crypto players to focus on eco-friendly innovations as a way to win public favor.

4

The implementation of crypto deregulation during Trump’s era could serve as both a catalyst and a complication for the market. While a more liberally regulated environment might initially attract investments and bring about technological innovations, it also carries risks of increased fraudulent activities and market instability. However, such actions could pave the way for potential strategic partnerships between established financial institutions and crypto firms. This collaboration could encourage innovative solutions that integrate blockchain technology with traditional financial systems, boosting practical use cases and possibly enhancing public trust over time.