At the recent Devcon 2024 conference in Thailand, Consensys CEO Joe Lubin made a significant statement regarding the implications of Donald Trump’s presidential election victory on the cryptocurrency market. According to Lubin, Ethereum is "poised to benefit" more from this development than any other protocol.
A Gas-Lit World and the SEC
Lubin began by describing the current regulatory environment as "a gas-lit world," where the Securities and Exchange Commission (SEC) has been generous with its interpretations of rules and regulations. However, he believes that it is clear that this was driven by the progressive side of the Democratic Party.
"We’ve been living in a gas-lit world for a long time, generously gas-lit by the SEC," Lubin told Cointelegraph during an interview at Devcon 2024. "We believe it seems pretty clear that it was driven by the progressive side of the Democratic Party."
Consensys’ Struggles with the SEC
Consensys has been one of the companies most affected by the SEC’s actions, having cut 20% of its workforce in October due to what Lubin described as "abuse of power" by the regulatory body. The company had previously blamed the SEC for stifling innovation and creating uncertainty around blockchain technology development.
However, with Trump’s victory last week, Lubin sees a glimmer of hope on the horizon. He believes that an eventual change in leadership at the SEC could bring about a more favorable environment for Ethereum and other cryptocurrencies.
Trump’s Victory: A Rebound in Favor of Ether
The market has already responded positively to Trump’s victory, with Bitcoin (BTC) surging 16% since November 5, while Solana (SOL) and Binance Coin (BNB) have risen by 8% and 3%, respectively. More notably, Ethereum (ETH) has seen a 23% increase in the last seven days and was trading at around $3,200 according to CoinMarketCap.
"We’ve already seen a rebound that has been more favorable to Ether," Lubin said. "So Ethereum is poised to benefit more than, I think, other protocols, especially since it’s just a lot bigger and more mature than all the other ecosystems other than Bitcoin, which is mature but narrow in its purview."
US Spot Ethereum ETFs See Record Inflows
Data from Farside shows that US spot Ethereum ETFs have seen a significant influx of investment since Trump was elected, with a record $295 million of inflows on November 11. While this pales in comparison to the inflows seen by Bitcoin ETFs, it is still a positive indicator for the cryptocurrency market.
Hoping for an Easy SEC Transition
Lubin and others believe that SEC Chair Gary Gensler will submit his resignation on January 20 when Trump returns to the White House. He hopes that Mark Uyeda, a current commissioner of the SEC, will become acting chair and bring about a smoother transition.
"Hopefully, they won’t try to jam up a lot of people and companies before they exit," Lubin said. "Hopefully, they’ll be graceful in their exit or the transition."
Consensys’ Open Letter to the Next US President
Before the election, Consensys issued an open letter addressed to whoever was to become the next US president, requesting clear and supportive regulations for crypto and Web3. The letter emphasized that regulatory uncertainty was hindering blockchain technology development.
"We believe that regulatory certainty is crucial for the continued growth of the blockchain ecosystem," the letter stated. "We urge you to provide clear guidance on the regulatory framework for digital assets and encourage innovation in this space."
Conclusion
The implications of Trump’s presidential election victory are still unfolding, but one thing is clear: Ethereum is poised to benefit more than any other protocol in the coming months. As Lubin said, "Ethereum is just a lot bigger and more mature than all the other ecosystems other than Bitcoin, which is mature but narrow in its purview."
Only time will tell if this prediction comes to fruition, but one thing is certain: the cryptocurrency market will be closely watching the developments at the SEC and their impact on the industry.
Related Articles
- Consensys Urges Clear Crypto Rules in Letter to Future US President
- Real-Life Yield Farming: How Tokenization Is Transforming Lives in Africa
Subscribe to Our Crypto Biz Newsletter
Stay up-to-date with the latest business trends and regulatory shifts in blockchain and cryptocurrency. Subscribe to our weekly newsletter for valuable insights on navigating the market and spotting financial opportunities.
Delivered every Thursday, our Crypto Biz newsletter is your go-to source for staying ahead of the curve in the rapidly evolving world of cryptocurrency and blockchain technology.
By subscribing, you agree to our Terms of Service and Privacy Policy.
