As the 2024 US election approaches, there are signs that former President Donald Trump is likely to return to the White House. This potential political change will have a profound impact on many fields, and Web3 (the third generation of the Internet) is no exception. This article will explore in depth the impact that Trumps coming to power may have on the Web3 ecosystem, covering aspects such as policy, regulation, technological development, and market reaction.
Web3 track generally supports Trump
In previous appearances, Trump has repeatedly expressed his support for cryptocurrencies, which has also led to a surge in the Trump-concept MEME coin MAGA. The specific content has been sorted out by TrendX Research Institute in Buy Trump? Participate in the US Election with Web3 | TrendX Research Institute . This article will not repeat it.
Recently, on July 15, Trump selected Senator Vance as his vice presidential running mate for the 2024 election. Vance has repeatedly made relevant remarks in support of cryptocurrencies and promoted bills that are favorable to crypto policies. Autopilot shows that BTC currently accounts for 6% of his wealth management positions. Not surprisingly, if Trump succeeds in his campaign for the US presidency, Web3 will usher in the most cryptocurrency-friendly US government in history. With the simultaneous arrival of interest rate cuts, it may also usher in an unprecedented violent bull market.
As a result, many members of the cryptocurrency community have begun to support Trump in their own ways. For example, A16Z, a top Web3 investment institution, issued an open letter to express its support for Trump.
A16Z believes that the Biden administrations regulatory strategy in the field of cryptocurrency is a suppression of innovation. It is concerned about the Biden administrations regulatory measures in the field of science and technology, believing that these measures may restrict innovation. Especially in the field of artificial intelligence, the Biden administrations policies may hinder the United States position in the global science and technology competition. In the current policy environment, Trump is more suitable than Biden to promote the development of technology and start-ups.
Not only that, many Web3 bigwigs also voted for Trump with real money.
This image is from PAnews
Recently, two super political action committees (Super PACs) that are the main channels for Trumps fundraising, namely Trump 47 Committee and America PAC, have respectively submitted disclosure documents for accepting donations to the Federal Election Commission (FEC), and donations from several crypto industry leaders or crypto friends have surfaced.
1. The Winklevoss brothers, founders of the crypto exchange Gemini and Winklevoss Capital Management, have donated $2.027 million in BTC to the Trump 47 Committee, which supports Trump, but due to federal individual donation restrictions, $310,800 will be returned. In addition, the Winklevoss brothers have each donated $250,000 to America PAC.
2. Douglas Leone, partner at Sequoia Capital: Doug Leone led venture capital firm Sequoia Capital as a managing partner from 1996 to 2022, a position he stepped down from in 2022 but remains a general partner. On June 14, he donated $1 million to America PAC.
3. Antonio Gracias, former Tesla board member, Valor Equity partner and CEO Antonio is the founder, CEO and chief investment officer of Valor. Antonio founded Valor in 1995. He has more than 25 years of experience in private equity investment. Antonio served as a director of Tesla from 2007 to 2021. On June 28, he donated $1 million to America PAC.
4. Joe Lonsdale, co-founder of Palantir Technologies: Joe Lonsdale, founder and managing partner of 8 VC, donated $1 million to America PAC on June 7.
5. Jesse Powell, co-founder of the cryptocurrency exchange Kraken: On June 28, he donated $845,000 worth of ETH.
6. Ripple Chief Legal Officer Stuart Alderoty: Donated $300,000 to Trump 47 Committee in the form of XRP.
7. Messari CEO Ryan Selkis: On June 3, Ryan donated USDC worth $50,000 to the Trump 47 Committee.
Trump’s policy orientation and Web3
Trump’s policy stance during his first term was focused on promoting economic growth, reducing regulation, and encouraging innovation. If he is re-elected, we can imagine what impact Trump’s election would have on cryptocurrencies.
Economic stimulus and innovation support: Trump has consistently supported tax cuts and reduced government intervention to promote economic growth. For the Web3 field, this may mean more economic stimulus policies to promote entrepreneurship and technological innovation. Less government intervention may provide a freer environment for the blockchain and cryptocurrency fields, which will help the rapid development of new technologies.
Financial regulation: Although the Trump administration took a relaxed approach to financial regulation during its first term, it may have a different approach in the field of cryptocurrency. Trump has publicly expressed his distrust of cryptocurrencies such as Bitcoin, believing that they may be used for illegal activities. If he comes to power again, he may impose stricter regulation on the cryptocurrency market to ensure the stability and security of the financial system.
Application of blockchain technology: Blockchain technology is considered an important part of Web3. Its decentralized, transparent and tamper-proof characteristics make it have broad application prospects in many fields. If the Trump administration continues to implement policies to promote innovation, the application of blockchain technology in finance, supply chain, medical care and government management will be further promoted.
Regulation of the cryptocurrency market: The Trump administration may be more cautious about cryptocurrencies. Although the cryptocurrency market has experienced rapid growth in the past few years, its volatility and potential risks still attract the attention of regulators. Although Trump currently shows favor for cryptocurrencies, if Trump is in power again, he may promote stricter regulatory measures to prevent market manipulation and illegal activities. This may include requiring greater transparency and strengthening supervision of exchanges.
Summarize
Trumps policy inclinations may affect the overall confidence of the market. If the market expects Trump to implement policies that are conducive to economic growth and technological innovation, investors confidence in the Web3 field may increase, bringing more capital inflows. However, if the market is worried that Trumps regulatory measures are too strict, it may also trigger short-term market fluctuations.
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