While the results of the US presidential election continue to be questioned by some in the community, mainstream media outlets and the Associated Press have definitely called the race for former Vice President and current President-elect Joe Biden a race.
But traders and analysts are now looking to determine what a Biden administration will mean for cryptocurrencies with uncertainty out of the way, and they seem to have come to a loose agreement that a president who says nothing about crypto is preferable to a president who disregards it actively.
Moreover, Qiao Wang, leader of the DeFi Alliance decentralised finance accelerator, cheered the loss of Trump, noting that in the past the President had tweeted negatively about Bitcoin and Libra:
The real winner is crypto:
– Biden to hire Bitcoin-friendly Gary Gensler
– Trump/Mnuchin openly hostile towards BTC
– SBF 2nd largest contributor to Biden
– A likely Republican senate to counter Dems’ aggressive regulation tendencies
Looking forward to the next few years 🚀🚀🚀
— Qiao Wang (@QwQiao) November 8, 2020
In the meantime, investor Mike Novogratz agreed that a Democratic administration would be good for cryptography, saying that a continuing stimulus programme would support the anti-inflationary narrative of Bitcoin:
— Mike Novogratz (@novogratz) November 4, 2020
At a macro level that an incoming Biden administration could support markets as uncertainty settles and hopes run high for additional stimulus, but such efforts could also cripple cryptocurrencies via a stronger dollar.
Moreover, there has also been widespread speculation in the forthcoming administration concerning the crypto inclinations of key appointees. Compound General Counsel Jake Chervinsky noted that whoever is nominated for office by President-elect Biden will be more important than the personal opinions of the incoming President:
President-elect Biden hasn’t said anything publicly about his views on crypto. For now, it really isn’t a big enough issue to warrant his attention.
The next four years of US crypto policy depends on who he appoints to key positions; we’ll know more as the transition gets going.
— Jake Chervinsky (@jchervinsky) November 7, 2020
To that end, Politico first reported that former CFTC president and Obama appointee Gary Gensler, best known in the wake of the 2008 financial crisis for his hardline enforcement of Wall Street regulations, would be part of Biden’s transition team. In the past, Gensler spoke positively about Bitcoin.
Two weeks ago, major outlets also reported that economist Lael Brainard is a frontrunner for Treasury Secretary. The former Federal Reserve governor who led a joint MIT effort to research CBDCs.
However, for all the guesswork, the open US stock market will eventually paint a clearer picture for speculators come Monday. Said one popular trader on Twitter:
monday is coming
— starbust (@inversebrah) November 8, 2020