Trump’s Potential Return Could Attract Crypto Firms Back to US with Clearer Regulations, HTX Ventures Report Suggests

If Donald Trump returns to the White House, the landscape for cryptocurrency regulation in the United States could see a major shift, potentially attracting more crypto companies to pursue public listings on American exchanges. According to a new report from HTX Ventures, a Trump administration would likely favor more relaxed and clear regulatory frameworks, offering an alternative to the stricter oversight seen under the Biden administration. This could halt the ongoing exodus of crypto companies from the U.S. and make the country an attractive destination for digital asset businesses once again.

The report comes as crypto companies increasingly seek friendlier jurisdictions amid mounting regulatory challenges in the U.S., with countries like Dubai emerging as appealing options for digital asset firms seeking stability and clearer guidelines.

Stricter Regulations Under Biden Lead to Crypto Industry Uncertainty

Under President Joe Biden, the regulatory environment has tightened considerably for the cryptocurrency industry. Led by SEC Chair Gary Gensler, the administration has implemented strict measures aimed at protecting consumers and mitigating risks tied to illegal financial activities. This approach, while prioritizing consumer safety and national security, has placed significant limitations on crypto companies looking to go public.

In recent years, the Biden administration has rolled out executive orders to formalize regulations for digital assets. Agencies like the Treasury Department have ramped up enforcement against crypto exchanges and imposed sanctions on platforms linked to criminal activities, creating an environment of regulatory uncertainty. The crackdown has affected legitimate businesses as well, with tighter controls stifling innovation and making it difficult for crypto firms to navigate the U.S. market.

The restrictive stance has left crypto companies struggling to secure traditional funding, as institutional investors grow wary of the regulatory risks associated with the industry. Coinbase, which went public in 2021, stands as a rare example of a successful U.S.-based crypto listing. However, as the only crypto firm on the Forbes 2024 Midas List, Coinbase’s status highlights the challenging landscape for digital asset businesses looking to establish a presence in the U.S. market.

Trump’s Vision: A “Bitcoin Superpower” with Government Crypto Reserves

Trump’s current campaign has taken a notably pro-crypto turn compared to his previous skepticism about digital currencies. He now positions himself as an advocate for U.S. leadership in the crypto space, sharing his ambition to make the country a “Bitcoin superpower.” During a recent appearance at a crypto event in Nashville, Trump proposed that the U.S. government should hold a Bitcoin reserve, asserting that any Bitcoin already in the government’s possession—or acquired in the future—should be retained.

In addition to a Bitcoin reserve, Trump has floated the idea of establishing a presidential advisory council focused on Bitcoin and cryptocurrencies. Rather than filling the council with regulators, he suggested it would consist of industry supporters and experts, aiming to promote policies that encourage innovation while addressing key regulatory concerns.

This shift marks a departure from Trump’s past doubts about digital currencies, signaling a potential shift toward a more crypto-friendly regulatory approach that could attract new listings and businesses to the U.S.

Crypto-Friendly Policies Could Spur Industry Growth and Public Listings

A Trump-led administration could offer crypto companies a clearer, more predictable regulatory framework, possibly encouraging more firms to pursue U.S.-based public listings. According to HTX Ventures, a relaxed regulatory environment would not only support innovation but also attract companies that have been deterred by recent enforcement actions.

The potential for a favorable regulatory climate has already prompted discussion among industry stakeholders. With Trump proposing policies that could reduce the regulatory burden on crypto firms, industry players see an opportunity to secure the U.S. as a leading player in digital finance. This approach contrasts with the recent trend of crypto firms looking abroad to places like Dubai, which offers regulatory stability and clarity for digital assets.

Election Outcome Could Influence Crypto’s Future in the US

The future of crypto regulation in the U.S. hinges in part on the outcome of the November 5 election, with over 41 million Americans having already cast their ballots early. Polymarket’s current odds give Trump a slight edge at 57.7%, compared to Vice President Kamala Harris’s 42.3%. Trump’s pro-crypto stance has positioned him favorably among crypto advocates, who hope his policies could foster a more innovation-friendly environment.

In contrast, Harris and the broader Biden administration have maintained a cautious approach to digital assets, favoring consumer protections and regulatory safeguards over industry growth. For crypto companies, the election outcome could be decisive, determining whether the U.S. becomes a crypto innovation hub or continues to enforce restrictive measures.