The 2024 U.S. Election: A Potential Turning Point for Crypto and Economic Freedom
As the 2024 United States presidential election approached, it became increasingly clear that significant changes were on the horizon for the crypto industry. With Donald Trump winning a second term as president and the Republican Party gaining control of the Senate, anticipation grew among crypto enthusiasts, especially those longing for a more favorable regulatory environment. Brian Armstrong, the CEO of Coinbase, was among the voices expressing optimism for what the future holds for digital assets under this new political landscape.
Following Trump’s election victory, the dynamics in Washington shifted significantly. The Republican Party not only secured a crucial Senate majority but also appeared on the verge of taking control of the House of Representatives. As a result, crypto advocates like Armstrong saw an opportunity for the digital assets space to thrive, expecting that the new leadership would usher in greater regulatory clarity, more legislative support, and potential reforms within key regulatory bodies. The market responded almost immediately, with the price of Bitcoin surging past $75,000 on November 6, as optimism about the future course of regulatory policies began to take hold.
A Supportive Political Environment Emerges
Trump’s comeback brings with it a perspective believed to be more aligned with the crypto industry. Stemming from his general support of digital financial growth and innovation, many believe the regulatory environment may become significantly friendlier to cryptocurrencies. A major shift would likely be seen if Trump follows through on his promise to remove Gary Gensler, the current chair of the Securities and Exchange Commission (SEC) — a figure who has been viewed as tough on crypto. Gensler’s leadership of the SEC during the Biden administration saw a wave of enforcement actions targeting major players in the space, from exchanges like Coinbase to projects such as MetaMask and Uniswap. Should Trump make good on his promise to fire Gensler early in his second term, the SEC’s enforcement approach could change, leaving room for policies that are potentially more progressive and less restrictive.
Beyond the presidential race, key Senate victories signaled that the political landscape is shifting in favor of crypto-friendly policies. A pivotal example was seen in Ohio’s Senate election, where Republican Bernie Moreno ousted incumbent Senator Sherrod Brown, known for his criticism of crypto. Moreno’s victory was seen as a significant stride for the pro-crypto movement, with Armstrong himself highlighting in a swiftly posted message on Platform X that Moreno’s platform and support for crypto likely played a decisive role in his win against Brown. This election undoubtedly marked a trend, where over 250 pro-crypto candidates triumphed in the House of Representatives, foreshadowing what Armstrong dubbed as “the most pro-crypto Congress ever.”
Calls for Regulatory Clarity and Economic Freedom
Armstrong has been vocal about what he sees as the critical regulatory issues facing the crypto industry. His reflections on the 2024 election results emphasized the hunger among voters for greater economic freedom, which he believes is made possible through a system rooted in less government intervention and more respect for free-market principles. In a series of posts following the election, the Coinbase CEO underscored a key sentiment: that America needs to recenter its focus on economic freedom, fueled by limited government involvement, the rule of law, and a meritocracy-driven society. He argued that the overregulation seen in recent years has stifled innovation, and now, a growing number of voters have aligned with a cause that favors reducing unnecessary control in the burgeoning digital economy.
At the heart of Armstrong’s optimism lies the potential for the U.S. crypto space, especially centralized exchanges (CEXs) like Coinbase, to benefit from reduced regulatory scrutiny. Giving exchanges more operational flexibility could unlock growth and innovation that have, up until now, been dampened by regulatory uncertainty. With new leadership in Washington, Armstrong hopes to see a regulatory environment that promotes industry growth rather than simply policing it.
Eyes on the SEC: A Push for Reform
While much of the attention in the weeks leading up to the inauguration is focused on the broader market landscape, the SEC remains a pivotal player in the crypto debate. Paul Grewal, the chief legal officer of Coinbase, has echoed Armstrong’s sentiments in calling for immediate reforms at the SEC. On November 6, Grewal launched another plea for the SEC to ease off its enforcement-heavy approach and instead engage more actively in rulemaking to provide clear and actionable guidance that companies can follow to remain compliant.
Particularly noteworthy is Trump’s position on the SEC. One of the central promises that emerged from his campaign rhetoric was to end what he describes as the “anti-crypto crusade” that unfolded during the Biden-Harris administration. His commitment to firing Gensler on the first day of his presidency is a message that reverberates throughout the industry, creating expectations of profound changes within the regulatory agency.
If Trump dismisses Gensler immediately after taking office, it would cut short the SEC chair’s tenure, which is not set to end until April 2025. This decisive move would set the tone for the new administration’s approach to the intersection of finance, technology, and governance — potentially opening the doors for an SEC chief more in tune with the needs of the evolving digital economy.
Conclusion: Crypto at a Crossroads
With the Republican sweep and a return to power for Donald Trump, the 2024 U.S. election is shaping up to be a pivotal moment for the cryptocurrency sector. Between the potential regulatory reforms, the expected SEC shakeup, and what can already be seen as a congressional infusion of pro-crypto sentiment, the digital assets industry is preparing for what could be a new chapter of growth, innovation, and regulatory clarity. For advocates like Brian Armstrong, the election results represent more than just a political shift—they signal the possibility of a future where economic freedom and crypto can coexist within a thoughtfully regulated, yet innovation-friendly environment.
