Bloomberg: After Trump's Presidency, Foreign Crypto Companies Could Be the Only Losers
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Bloomberg: After Trump's Presidency, Foreign Crypto Companies Could Be the Only Losers
As their U.S. counterparts thrive during Trump's term, foreign crypto asset exchanges such as Binance, OKX, and Deribit may see their market share squeezed.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
Since Trump vowed to end Biden's "crackdown on crypto assets," the crypto industry has been looking forward to his potential second term as president.
Following the attempted assassination last week, Trump's odds of winning the November U.S. election have been rising.
According to a poll released this week by CBS News, 52% of voters may support Trump’s re-election as president.
However, while the crypto industry holds its breath in anticipation, this may not be good news for overseas crypto companies.
As reported by Bloomberg on Sunday, foreign cryptocurrency exchanges such as Binance, OKX, and Deribit could see their market share squeezed as their U.S. counterparts thrive under a potential Trump administration.
These overseas exchanges had previously gained market share as U.S. competitors were forced to shut down or abandon launching some of the most popular crypto services.
Meanwhile, with Trump’s promise of more crypto-friendly regulations, U.S. exchanges could launch leveraged trading services with higher leverage or offer crypto futures and options contracts with longer expiration dates.
Bitmain, the largest BTC mining equipment manufacturer, might also face challenges during a potential Trump presidency.
Currently, most BTC miners listed in the U.S. use mining machines produced by this Chinese conglomerate. American competitors like Block and Auradine selling new chips and machines to BTC mining firms will further increase the pressure on Bitmain.
Market participants and observers believe that almost all U.S. crypto companies would benefit from a second Trump presidency.
Earlier this week, analysts at Jefferies said Trump’s “public support” for BTC and crypto could benefit crypto-related stocks.
Christian Catalini, founder of the MIT Cryptoeconomics Lab, said: "Almost everyone in the U.S. will be a winner if they are willing to operate under the new rules once implemented."
Potential winners include BTC miners and crypto companies that have faced difficulties trying to list in the U.S.
In June this year, after meeting with BTC miners, Trump posted on his Truth Social account stating that BTC miners would be "our last line of defense against CBDC (central bank digital currency)."
Trump also added, his ambition is to ensure all remaining BTC is "made in America".
During Biden's presidency and under Gary Gensler’s leadership at the U.S. Securities and Exchange Commission (SEC), crypto companies seeking initial public offerings (IPOs) have had limited success.
For example, Circle, the issuer of the USDC stablecoin, canceled its listing plans over a year ago but resubmitted an IPO application in January 2024.
Kraken, the second-largest U.S. crypto exchange, and Northern Data, which transitioned from crypto mining to AI computing provider, are also preparing for potential listings.
Under a Trump administration, these companies may finally receive the green light to go public, especially if the former president replaces Gensler with someone more favorable toward crypto.
Notably, Kraken founder Jesse Powell donated $1 million to Trump’s campaign, making him one of many figures in the crypto industry supporting Trump’s re-election bid.
Crypto exchanges have increasingly faced banking challenges amid tighter regulations, but under Trump’s leadership, banking options for crypto exchanges could expand as regulations ease.
Additionally, Trump has vowed never to allow the issuance of a digital dollar—a positive development for the crypto industry, which views CBDCs as a potential tool for expanded government financial surveillance.
In February this year, Trump stated that "CBDC is a very dangerous thing".
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