Trump's Re-Election Fuels Optimism for Crypto Regulation, Bitcoin Hits New Highs

Andreessen Horowitz, or a16z, sees a potential re-election of former President Donald Trump as a game changer for cryptocurrency regulation. They encourage projects to embrace decentralized solutions and build confidently in the U.S.

The venture capital firm has invested heavily in crypto and web3 startups. In a recent blog post, they highlighted Trump’s supportive stance on crypto as a positive development for the industry.

Legal and policy experts at a16z—Miles Jennings, Michele Korver, and Brian Quintenz—discussed how the new political landscape could lead to clearer regulations. They stated, “Now that the election is decided, we believe this is an incredible opportunity to build on the bipartisan progress from the last Congress.”

Their main advice to crypto founders? Take advantage of the new administration's openness to digital assets. They emphasized, “Where there is trust, there is regulation.” They urged developers to reduce centralized dependencies to stay compliant.

According to these experts, now is the right time for projects that have hesitated to use tokens due to regulatory fears. With Trump’s pro-crypto approach, founders should feel confident in using tokens as “legitimate and lawful tools.”

OKX's chief legal officer, Mauricio Beugelmans, noted, “Today’s all-time high, driven by a Trump election win, signals that we are in the midst of a potential paradigm shift into the next phase of growth for crypto.”

This optimism largely stems from Trump’s campaign promises to ease restrictions on crypto. He also plans to replace Securities and Exchange Commission Chair Gary Gensler, whose strict enforcement has caused issues for the industry.

Beugelmans added, “We hope forward-looking regulation that protects the industry and users will become a bipartisan topic in the future.”

Trump’s re-election has sparked enthusiasm in the markets, pushing Bitcoin to new all-time highs above $80,000.

Aurelie Barthere, a principal research analyst at Nansen, mentioned, “The confirmation of Republicans winning the House could provide an additional boost to the risk rally. However, we may see some profit-taking in the coming weeks or months as actual policies are tested.”

In a separate incident, Kraken, a centralized exchange, reported a strange attempt to access an account. Last month, they revealed that someone tried to deceive a support agent by wearing a Halloween-style rubber mask during a video call. This attempt failed, as the attacker raised several red flags during initial checks, including not being able to name the assets in the account.

Additionally, the U.S. Department of Justice (DOJ) has launched a website to collect statements from individuals affected by the 2016 Bitfinex hack. This initiative allows potential victims to share their experiences related to the criminal actions of Ilya Lichtenstein and Heather Morgan. The DOJ maintains that, under the Crime Victims’ Rights Act, there are no recognized victims in this case.

In another significant event, police are investigating the high-profile kidnapping of Dean Skurka, CEO of Toronto-based crypto firm WonderFi Technologies. Skurka was forcibly taken near University Avenue and Richmond Street. The kidnappers demanded a ransom of $720,000, or $1 million Canadian dollars, for his release. The ransom was paid electronically, and Skurka was found safe in Centennial Park, Etobicoke, just hours later.