The 2024 election might just be the best thing that ever happened to Bitcoin and the crypto space.
With Trump and pro-Bitcoin leaders taking over Congress and the White House, we’re (most likely) about to see a dramatic shift in how digital assets are treated in the U.S.
While the current price action is mainly driven by hype, this could be about setting the stage for real, long-term growth across the industry.
Here's why:
Death To Operation Chokepoint 2.0
For the past couple of years, Operation Chokepoint 2.0 has made life hard for crypto businesses, limiting their access to banking and financial services.
But that's about to change with Sherrod Brown out and pro-crypto Bernie Moreno in as Ohio’s new Senator. Moreno’s win signals the end of these restrictive policies, potentially opening up U.S. banking access for crypto firms, even those currently relying on offshore solutions.
In short, easier banking access is on the horizon, and that’s huge for the industry.
Strategic Bitcoin Reserve on the Agenda
The idea of a U.S. Strategic Bitcoin Reserve—yes, like the country’s gold reserves—isn’t just talk anymore.
With a Republican majority in the Senate, Cynthia Lummis’s proposal to accumulate 1 million Bitcoin over the next five years might get a vote in 2025. By the way, that’s 5% of Bitcoin’s total supply, which the U.S. government could stockpile.
President Trump even supported this idea at the Bitcoin 2024 Conference, clarifying that Bitcoin could play a central role in America’s financial future.
Significant Changes at the SEC
It’s no secret that SEC Chair Gary Gensler is one of the most hated people in the crypto community.
But come day one, Trump has promised to replace him—most likely with Hester Peirce, a long-time advocate for a balanced approach to crypto regulation. Dan Gallagher, Robinhood’s Chief Legal Officer and a supporter of crypto innovation is also in the running for a key regulatory role. This duo could signal a friendlier SEC that aligns its policies with the pace of technological innovation, potentially allowing banks and institutions to hold Bitcoin more freely.
However, it is worth mentioning that Trump can't "fire" the SEC Chair but can obviously influence who is the leading US regulator. Nevertheless, even the American Securities Association (ASA) recently called for the immediate resignation of SEC Chair Gary Gensler.
With a more crypto-friendly SEC, we could see a wave of institutions adding Bitcoin directly to their balance sheets. And as the U.S. inches toward its own Bitcoin reserve, the influence on institutional adoption could be massive.
A Supportive Administration for Mining and Self-Custody
Trump’s new policies include tax breaks for Bitcoin mining and a potential zero-tax plan on Bitcoin sales.
By framing Bitcoin as a currency and supporting mining, the U.S. could become a top destination for digital asset innovation, reversing the trend of crypto companies relocating abroad.
High-Level Support from the VP-Elect
Vice President-elect JD Vance is another strong advocate for the digital asset ecosystem.
With personal investments in Bitcoin and Solana, he is an outspoken supporter of decentralized finance. Vance has even talked about “ending the Fed” to give more power to decentralized networks—a bold stance that aligns well with the incoming administration’s crypto-friendly policies.
A Pro-Crypto Congress
The 2024 elections resulted in a pro-crypto Congress, with 263 crypto-friendly members in the House and a solid majority in the Senate. This new legislative landscape promises regulatory clarity and a supportive environment for growth and innovation.
Institutions will be more empowered to invest in Bitcoin. With more transparent regulations and a pro-Bitcoin administration, the potential for growth in this space is enormous.
The bottom line? Beyond the hype, the conditions for a significant Bitcoin and crypto expansion are in place. It’s not just about one election cycle—it’s about the dawn of a new era for digital assets in the U.S.