Following Donald Trump's presidential win and the Republican party's control of the Senate, the U.S. election outcome is expected to bring about clearer regulations for digital assets.
Bernstein, a broker, stated in a research report that the Securities and Exchange Commission (SEC) and Senate Banking Committee are likely to become more supportive of cryptocurrencies. The broker predicted a 'new regime of crypto rule making,' describing this significant shift as not yet factored into current prices. As a result, stablecoin and market structure bills are expected to progress more quickly, which is beneficial for stablecoin issuers like Circle and Paxos, as well as prominent U.S.
cryptocurrency exchanges and broker-dealers. Bernstein highlighted the SEC's ongoing legal disputes with major crypto industry players, including Coinbase, Robinhood, Binance, and decentralized finance (DeFi) and stablecoin companies. Analysts, led by Gautam Chhugani, forecast that in the medium term, there will be greater clarity on the distinction between digital assets and securities, as well as a progressive framework for registering digital asset securities with the SEC. The broker expects a revaluation of broader crypto assets, which have been hindered by uncertainty over their classification as securities.
It also anticipates that asset managers will introduce more exchange-traded fund (ETF) products based on other cryptocurrency tokens. Furthermore, the report predicts positive action toward establishing a national bitcoin reserve, in line with Trump's pre-election promise, and increased focus on mining growth in the U.S.