Congratulations to Trump for winning the election:
Many of our friends in the crypto industry must be overjoyed; cryptocurrencies are generally surging~
But as the saying goes, outsiders watch the excitement while insiders watch the details. Our friends in the crypto industry can focus on three key points:
Point 1: Who will replace the SEC chairman?
As the saying goes, 'A new emperor brings new ministers.' Since Trump wants to end the Democratic Party's illegal repression of the crypto industry, he certainly cannot continue to employ the previous administration's fool, right?
As early as July of this year, Trump stated that if he wins the election, "on the first day of taking office, he will remove SEC Chairman Gary Gensler and replace him with another candidate who 'likes' cryptocurrencies," and ensure that the U.S. becomes the global 'cryptocurrency center.'
The Democratic SEC's crypto policy is:
1. The issued coins must have practical uses; otherwise, they will be classified as securities.
2. Projects must obtain recognition from traditional accounting/auditing and other centralized institutions; otherwise, there will be information asymmetry.
This has resulted in the bizarre phenomenon of memes flying everywhere.
If the SEC's crackdown on crypto policies can be reversed, then a large number of innovative enterprises can not only eliminate concerns about issuing tokens for financing but may also offer more benefit bindings for cryptocurrencies than for stocks.
If this happens, our crypto market is very likely to disrupt the existing capital market like Nasdaq did fifty years ago.
If Trump achieves this, the first major change in our industry will be that value coins or have a wide-ranging surge, which won't be worse than the last round; you should know that during Defi summer, various application tokens saw tenfold or even hundredfold increases, with no upper limit.
Point 2: When will Bitcoin be included in the federal strategic reserve?
Trump's family had already stated in October that Trump once promised to make the U.S. the first country to list Bitcoin as a strategic reserve asset.
If this is really achieved, it is very likely that Bitcoin can indeed establish its status as a global reserve asset during the upcoming global liquidity cycle.
The era we are in is inevitably experiencing friction due to the end of four old cycles and the beginning of four new cycles, which may lead to various friction-related messages and wars.
Regardless of the Russia-Ukraine or Israel-Palestine issues, they all erupted during this period.
Bitcoin, as a strategic reserve asset, undoubtedly plays the best role in this command and is also the most beneficial role for Bitcoin's own development. If Trump can push such a matter, Bitcoin will not just double.
Point 3: How will the Defi revolution erupt?
Trump's own family has launched a project called World Liberty Financial.
Although the sales speed of this governance token may not meet expectations, only 10% has been sold after so long.
However, Trump's vision for Defi can actually be slightly inferred from this project.
It is important to know what Defi is for; Defi can completely revolutionize traditional banks and other institutions.
These things have actually been realized by America's big banks long ago.
For example, J.P. Morgan, also known as JPMorgan, had issued a coin called JMP Coin back in 2019. This coin is a deposit token based on internal deposits, for use by JPMorgan's internal corporate clients for direct payment and settlement.
This plan has also been copied by another large American bank, Citibank.
This deposit token is restricted by compliance and cannot be open to retail investors.
If the obstacles at the compliance level can be overcome, then wallets/exchanges can easily transform into banks/brokerages and other financial institutions.
Is Trump aware of this?
From the speeches, it was clear that while promoting WLFI, it was stated:
"For a long time, ordinary Americans have been oppressed by big banks and financial elites. It is time for us to unite and fight back together."
Therefore, whether it is banks or crypto, both are ready to undergo a revolution through Defi.
From our perspective, this statement sounds like Trump; he supports and understands that to succeed, one must first sacrifice oneself.
The United States is absolutely the global international financial center and has benefited from dollar hegemony for many years. The banking industry is also very developed, relying on the financial industry to ensure America's leading position for so many years.
But what is Defi?
The beneficiaries of this development are not the United States, nor any specific American company, but whoever participates benefits. Therefore, developing Defi also means Trump has to give up the strong advantages of the original American financial industry, which is equivalent to self-sacrifice.
Making this decision is very difficult.
First, this involves the interests of various financial giants behind Trump, which may touch on the cake of many donors.
Secondly, the competitiveness of the old financial system has declined, which is equivalent to reducing the influence of dollar hegemony; this is very dangerous for the U.S.
But we all know that in the future, it is clearly a more efficient financial tool!
The work that a thousand enterprises need to complete, he can accomplish with one contract. This is the productivity that technology brings; this revolution is not an ordinary revolution; it cuts through the arteries of the U.S., so this decision is very difficult to make.
But if Trump can implement this policy thoroughly, from our understanding, it indicates that he has a profound awareness that the future is unstoppable; he is merely conforming to technological development.
In the short term, it is not good for the U.S., but in the long term, it is beneficial for U.S. development.
Under the new technology's new financial system, the U.S. is still the fastest to start and do the best. In the new system, the U.S. will continue to be the financial center.
This is a difficult but correct thing. If achieved, our industry will usher in a new wave of application explosion, with the number of projects at least five times that of now.
