While the world hails Donald Trump's victory in the American presidential elections, the United States also voted to renew some of its senators. The results of these elections place the Republican Party as the majority faction within the Senate, which leaves the way open for the adoption of pro-crypto regulations in the country.
A Senate with a Republican majority and Donald Trump as president: the winning combo for pro-crypto legalization?
In parallel with the American presidential elections which took place on November 5, a part of the voters also voted to elect their senators. Although the results of these senatorial elections are not final, it is mathematically certain that the Senate will be composed of a majority of Republican senators.
Indeed, before the elections, of the 100 senators who make up the Senate, 49 were from the Republican Party and 49 from the Democratic Partythe last 2 being labeled independent. Because of this perfect equality, senators have had difficulty in recent years agreeing on a bill to best regulate the cryptocurrency market.
💡Cryptocurrencies and American elections: premises, issues and perspectives
However, the situation should change. Indeed, the Republican Party won 3 seats in the Senate to the detriment of the Democratic Party. With a Republican majority Senate, the next pro-crypto Administration led by Donald Trump is well on its way to establishing the legislative framework they want for the cryptocurrency sector.
Note that elections to elect lawmakers to the House of Representativesthe other component of the United States Congress along with the Senate, were also held at the same time as the presidential and senatorial elections.
At the time of writing, the counting has not been completed, but with 206 seats won against only 191 for the Democratic Party, the Republican Party is well on its way to obtaining a majority of representatives. Only 12 seats are missing for the camp of future President Donald Trump.
According to information collected by StandWithCrypto, 261 elected representatives reportedly adopted a pro-crypto position out of the 435 seats present in the House of Representatives. In the same way, out of a third of elected senators, at least 17 were favorable to cryptocurrencies.
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What crypto bill for the United States?
In any case, obtaining such a majority in Congress would allow the United States to work freely to define a clear regulatory frameworkreducing the ambiguities that currently slow down innovation and the expansion of investment possibilities.
Among the bills already submitted that the new Senate could consider, there is the Digital Commodities Consumer Protection Act. Favorable to businesses, this legislative framework would allow for the Commodity Futures Trading Commission (CFTC) to have control over the regulation of digital asset tradingand to no longer share this role with the Securities and Exchange Commission (SEC), among others.
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Obviously, we also think of the Bitcoin Act carried by Republican Senator from Wyoming Cynthia Lummis. This bill on the strategic reserve of Bitcoin [BTC] » proposes, among other things, to use cryptocurrency as a reserve unit.
The United States Treasury Department, at the center of the economic strategy imagined by Cynthia Lummis, would then be invited to constitute a reserve of around one million BTC, or a little over 76 billion dollars. These cryptos would only be used to reduce the national debt, capitalizing on their appreciative value.
Finally, it is entirely possible that another senator or representative will propose a new bill, more in line with the promises made by Donald Trump.
👔 Today, Donald Trump is elected 47th President of the United States
🤔 What are the new head of state's promises regarding cryptocurrencies? 🧵👇 pic.twitter.com/pKSwvI2tHj
— Cryptoast (@CryptoastMedia) November 6, 2024
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Source: StandWithCrypto
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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