South Dakota Senator John Thune, a cryptocurrency advocate and veteran GOP lawmaker, just won the vote to lead the Republican majority in the Senate next year.
Thune has served as Mitch McConnell’s right-hand man for years, and he steps into the leadership role as McConnell retires after nearly two decades as Republican leader. The GOP leader’s vote, conducted in secret, saw Thune beat Rick Scott — who is backed by Elon Musk — and another close McConnell ally, John Cornyn.
The victory puts Thune in the lead as the Republican Party takes control of the Senate on Jan. 3, aligning GOP policies with President Donald Trump's agenda, and already signals a series of struggles to come.
Tariffs, Free Trade and Potential Future Conflicts
Thune, 63, is now in a role that will have to reconcile multiple factions of the party and the interests of a divided base. Despite his outspoken support for free trade and pro-business policies, he has a tense history with Trump, especially after the Capitol riots in January 2021.
Thune is working to repair that strained relationship, though he has made clear he is no rubber stamp for Trump. Just this week, he publicly said he is open to Trump’s request for more power to bypass Senate confirmation procedures with recess appointments.
But in other areas — like tariffs and free trade — Thune is miles away from Trump’s view, and that difference could soon be making headlines.
He posted on X, formerly Twitter, that “Senate Republicans are united behind the dent Trump agenda.” Musk, who now owns the platform, responded with a straightforward “congratulations.”
Trump himself has not endorsed any candidate in the race for Senate leadership, though his hand is everywhere in the upcoming Republican-majority Senate.
In August, Thune warned that Trump’s tariffs would only fuel inflation, and consumers would pay the price. “Global tariffs are a recipe for inflation,” he said, and as Trump’s tariff agenda moves forward, the issue could soon put him at odds with the man he will be working alongside.
Congress has broad authority over tariffs, giving Dent the power to make changes related to national security. Trump could bypass the Senate on this issue, but if he did, he would risk a public fight with Thune and a split within the Republican Party.
But trade policy isn’t the only hot-button issue that could split the new Senate leader and the president. Thune is also taking a tough stance on foreign aid, particularly support for Ukraine, an area where he and Vice President-elect J.D. Vance are at odds.
While Thune and McConnell have consistently supported aid to Ukraine, Vance has been critical of sending more U.S. resources abroad. Thune’s support for Ukraine aid could add another layer of tension within the Republican Party, especially as populist and isolationist voices rise within the party.
Thune's Cryptocurrency Track Record and Legislative Influence
Thun's involvement in cryptocurrency legislation dates back a few years, and it's clear he sees the potential that cryptocurrencies have to transform finance and even the broader economy.
In 2022, he co-sponsored the Digital Commodities Consumer Protection Act (DCCPA), a major step toward regulating cryptocurrency regulation. The law aims to defi the roles of regulatory bodies, particularly the Commodity Futures Trading Commission (CFTC), in regulating cryptocurrencies.
Thune has repeatedly said in both public and private debates that cryptocurrencies “need clear and sensible regulation.” Beyond crypto, Thune has long championed tax reform. He is leading a Republican-backed bill to repeal the estate tax on large inheritances, which he says penalizes family businesses and farms.
The current exemption is $27.2 million for married couples, but without new legislation, it is set to be cut in half in 2026 due to sunset provisions in Trump’s 2017 tax law. Thune’s push to repeal the estate tax appeals to some of the GOP’s biggest campaign donors, who argue that inheritance taxes unfairly hurt hard-working families.
Thune has also consistently pushed for biofuels. Ethanol and biodiesel are vital to South Dakota’s economy, and Thune is one of the state’s most prominent advocates for renewable fuels. His pitch has been to promote biofuels as part of an energy mix that reduces reliance on oil, a position that is popular with rural voters and farmers.