Matrixport Research: Trump's nomination of key cabinet minister candidates may further integrate cryptocurrency into the U.S. economy

The elected President of the United States, Trump, has nominated three key cabinet minister candidates who will respectively head the U.S. Department of the Treasury, the Department of Commerce, and the Securities and Exchange Commission (SEC). These candidates are generally regarded as friendly towards cryptocurrencies and are aware of the inevitability of digital assets in the modern financial system. Their nominations are expected to further integrate cryptocurrencies into the U.S. economy.

Ironically, the U.S. may become a beneficiary of MiCA. During Trump's second term, his pro-cryptocurrency cabinet team is expected to focus on integrating cryptocurrencies into the U.S. economy to drive technological innovation and economic growth. The domestic debate in the U.S. has shifted from merely establishing a regulatory framework to fully embracing cryptocurrencies as a driver of economic opportunity and technological advancement.

The nominee for Secretary of Commerce, Howard Lutnick, CEO of investment bank Cantor Fitzgerald, has been an active advocate for Bitcoin, comparing BTC to gold and supporting its unrestricted global trading. Similarly, Scott Benset, the nominee for U.S. Secretary of the Treasury, is also a staunch supporter of BTC, stating, "The crypto economy will be widely accepted. These assets attract young people who have previously not participated in the market."

Despite the rise in Treasury yields from a low of 3.60% following the September FOMC meeting, they have declined again after Scott Benset was nominated as Treasury Secretary. This reflects market expectations of an initial slowdown in growth, partly due to potential government restructuring and Benset's proposal to reduce the U.S. budget deficit. If post-election campaign promises are implemented, the stimulative fiscal impulse that has emerged under recent surges in government spending may be difficult to sustain—this is a key argument for advocating the purchase of Bitcoin in the current macro environment.

The possibility of establishing a strategic BTC reserve is increasing. However, the U.S. may not actively purchase Bitcoin but rather indefinitely retain its already held Bitcoin.

The third key candidate that Trump may nominate is Paul Atkins, an experienced cryptocurrency lawyer and a potential candidate for SEC Chairman. As a former SEC commissioner, Atkins has played a key role in shaping the cryptocurrency industry through his regulatory expertise and advocacy for balanced regulation. He has consistently emphasized the need for clear guidelines for digital assets, warning that overly strict regulation could hinder technological innovation.

If the above nominations come to fruition, the narrative for 2024—BTC as digital gold—may evolve into a revival of decentralized finance (DeFi), with traditional finance increasingly integrating DeFi applications and blockchain technology to enhance payment systems and transaction efficiency. While clear regulations are expected to be established, the digitization of the U.S. financial economy may make cryptocurrency applications the biggest winners of this election. This shift may also compel governments in other countries and regions to embrace cryptocurrencies, accelerating their global adoption.

While all eyes are on BTC, Ethereum may catch up in the scenario of a DeFi revival.

The above views are partially sourced from Matrix on Target. Contact us for the complete report on Matrix on Target.

Disclaimer: The market is risky, and investment should be approached with caution. This article does not constitute investment advice. Trading in digital assets may involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.