A Comprehensive Understanding of Trump's Crypto Supporters and the Potential New Web3 Policies They May Bring
As the 2024 U.S. presidential election approaches, various signs indicate that former President Donald Trump is likely to return to the White House. This potential political shift will have far-reaching effects on many areas, and Web3 (the third generation of the internet) is no exception. This article will explore the possible impacts of Trump's return on the Web3 ecosystem, covering aspects such as policy, regulation, technological development, and market response.Web3 Track Generally Supports Trump
In his previous appearances, Trump has repeatedly expressed support for cryptocurrencies, which has led to a surge in the Trump-themed MEME coin MAGA. The specific details have been summarized by TrendX Research Institute in “Buying Trump? Participate in the U.S. Election in a Web3 Way | TrendX Research Institute”. This article will not elaborate further.
Recently, on July 15, Trump selected Senator Vance as his running mate for the 2024 presidential election. Vance has made several statements supporting cryptocurrencies and has promoted legislation favorable to crypto policies. Autopilot shows that BTC currently accounts for 6% of his wealth management portfolio. If Trump successfully runs for president, Web3 will welcome the most crypto-friendly U.S. government in history, and with the simultaneous arrival of interest rate cuts, it may usher in an unprecedented bull market.
As a result, many members from the cryptocurrency community have begun to support Trump in their own ways. For example, the top Web3 investment firm A16Z has released an open letter expressing support for Trump.
A16Z believes that the Biden administration's regulatory strategy in the cryptocurrency sector is a suppression of innovation. They express concerns about the Biden administration's regulatory measures in the tech sector, believing these measures may limit innovation. Particularly in the field of artificial intelligence, the Biden administration's policies could hinder the U.S. position in global tech competition. In the current policy environment, Trump is seen as more suitable than Biden to promote the development of technology and startups.
Moreover, many Web3 leaders have financially backed Trump.
This image is from PAnews
Recently, two major fundraising channels for Trump, the Super Political Action Committees (Super PACs), namely Trump 47 Committee and America PAC, have submitted disclosure documents to the Federal Election Commission (FEC) regarding accepted donations, revealing contributions from several leaders in the crypto industry or crypto supporters.
The founders of cryptocurrency exchange Gemini, the Winklevoss twins, have donated $2.027 million to the Trump 47 Committee in the form of BTC, but due to federal limits on personal donations, $310,800 will be returned. Additionally, the Winklevoss twins have each donated $250,000 to America PAC.
Sequoia Capital partner Douglas Leone: Doug Leone led the venture capital firm Sequoia Capital from 1996 to 2022 as managing partner. He stepped down from that role in 2022 but remains a general partner. On June 14, he donated $1 million to America PAC.
Former Tesla board member, Valor Equity partner and CEO Antonio Gracias: Antonio is the founder, CEO, and Chief Investment Officer of Valor, which he founded in 1995. He has over 25 years of experience in private equity investment. Antonio served on Tesla's board from 2007 to 2021. On June 28, he donated $1 million to America PAC.
Co-founder of Palantir Technologies Joe Lonsdale: Joe Lonsdale is the founder and managing partner of 8 VC. On June 7, he donated $1 million to America PAC.
Co-founder of cryptocurrency exchange Kraken Jesse Powell: On June 28, he donated $845,000 worth of ETH.
Ripple Chief Legal Officer Stuart Alderoty: Donated $300,000 to the Trump 47 Committee in the form of XRP.
CEO of Messari Ryan Selkis: On June 3, Ryan donated $50,000 worth of USDC to the Trump 47 Committee.
Trump's Policy Tendencies and Web3
Trump's policy stance during his first term primarily focused on promoting economic growth, reducing regulation, and encouraging innovation. If he is elected again, we can imagine the potential impacts on cryptocurrencies.
Economic Stimulus and Innovation Support: Trump has consistently supported tax cuts and reduced government intervention to promote economic growth. For the Web3 sector, this could mean more economic stimulus policies to foster entrepreneurship and technological innovation. Less government intervention may provide a freer environment for blockchain and cryptocurrency, facilitating the rapid development of new technologies.
Financial Regulation: While the Trump administration adopted a relaxed attitude toward financial regulation during its first term, it may handle the cryptocurrency sector differently. Trump has publicly expressed distrust toward cryptocurrencies like Bitcoin, believing they could be used for illegal activities. If he returns to office, he may impose stricter regulations on the cryptocurrency market to ensure the stability and security of the financial system.
Application of Blockchain Technology: Blockchain technology is considered an important component of Web3, with its decentralized, transparent, and immutable characteristics offering broad application prospects in various fields. If the Trump administration continues to promote innovation, the application of blockchain technology in finance, supply chains, healthcare, and government management will be further advanced.
Regulation of the Cryptocurrency Market: The Trump administration's attitude toward cryptocurrencies may be more cautious. Despite the rapid growth of the cryptocurrency market in recent years, its volatility and potential risks have drawn the attention of regulators. Although Trump currently shows favor toward cryptocurrencies, if he returns to power, he may push for stricter regulatory measures to prevent market manipulation and illegal activities. This could include demands for greater transparency and enhanced regulation of exchanges.
Conclusion
Trump's policy tendencies may influence overall market confidence. If the market anticipates that Trump will implement policies favorable to economic growth and technological innovation, investor confidence in the Web3 sector may increase, leading to more capital inflow. However, if the market fears that Trump's regulatory measures may be too strict, it could also trigger short-term market volatility.
