Trump’s Advocates: The Three Men Shaping A New Financial (Crypto) Era | Matrixport Research

The U.S. President-elect has nominated three pivotal candidates to lead the Department of the Treasury, the Commerce Department, and potentially soon, the SEC. Together, these nominees are poised to influence crypto integration into the U.S. economy, as all three are regarded as crypto-friendly and aware of the inevitability of digital assets in the modern financial landscape.

Ironically, the U.S. could emerge as a beneficiary of MiCA. Trump’s pro-crypto ministerial team is expected to focus on integrating crypto into the U.S. economy to drive innovation and growth. The debate in the U.S. has already shifted beyond merely establishing a regulatory framework to fully embracing cryptocurrencies as drivers of economic opportunity and technological progress.

Trump’s prospective Commerce Secretary and CEO of investment bank Cantor Fitzgerald, Howard Lutnick, has been a vocal advocate for Bitcoin, likening it to gold and championing its unrestricted global trade. Trump’s nominee for U.S. Treasury Secretary, Scott Bessent, is a vocal supporter of Bitcoin, stating, “The crypto economy is here to stay. These assets attract young people who haven’t participated in the markets.”

While Treasury yields rose from their post-September FOMC meeting low of 3.60%, they have since declined following Scott Bessent’s nomination as Treasury Secretary. This reflects market expectations of slower initial growth, partly due to potential restructuring of government departments and Bessent’s suggestion of a reduced U.S. budget deficit. The stimulative fiscal impulse seen in recent years under exponential government spending may not continue if post-election promises are implemented — a key argument for buying Bitcoin in the current macro environment.

A Strategic Bitcoin Reserve seems increasingly likely, though the U.S. may not actively purchase Bitcoin but instead retain the holdings it already possesses indefinitely.

The third key nominee is Paul Atkins (potentially), a seasoned crypto lawyer and potential SEC Chair. A former U.S. Securities and Exchange Commission (SEC) commissioner, Atkins has played a pivotal role in shaping the cryptocurrency industry through his regulatory expertise and advocacy for balanced oversight. He has consistently emphasized the need for clear guidelines for digital assets, warning against overly restrictive regulations that could hinder technological innovation.

If this holds true, the narrative of 2024 — Bitcoin as digital gold — could evolve into a DeFi renaissance, where TradFi increasingly integrates DeFi applications and blockchains to enhance payment systems and transaction efficiency. While setting clear regulations may be expected, digitizing the U.S. financial economy could make crypto applications the biggest winners of this election. This shift could also pressure other governments to embrace crypto, accelerating global adoption.

And while everybody has his eyes on Bitcoin, a new leader could catch up under a DeFi renaissance scenario.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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