Shares of New York-listed cryptocurrency firms gained before the open on Monday after Republican presidential candidate Donald Trump talked up Bitcoin and promised friendlier regulation for the industry.
Crypto exchange Coinbase’s shares climbed 3.7%, while miners Bitfarms, Riot Platforms and CleanSpark were up between 3.4% and 4.5%.
“The crypto market interprets a scenario of a Trump win as more positive for crypto, in view of the Biden administration’s strong regulatory crackdown on crypto and pro-Bitcoin statements by Trump,” Bernstein analysts wrote in a note.
Crypto executives have often complained of excessive oversight and a hostile regulatory environment under President Joe Biden.
(Unravel the complexities of our digital world on The Interface podcast, where business leaders and scientists share insights that shape tomorrow’s innovation. The Interface is also available on YouTube, Apple Podcasts and Spotify.)
But the Securities and Exchange Commission Chair Gary Gensler, the administration’s top cop for crypto enforcement, has defended his view of the industry, citing the wild volatility and speculative nature of assets like Bitcoin.
Still, crypto has rapidly moved from the fringes of the financial world to the mainstream, helped by institutional investors’ backing and the approval of exchange-traded funds tied to spot price of Bitcoin and Ether.
A Trump win could boost the industry further. On Saturday, he said his administration would create a national “stockpile” of Bitcoin using the crypto the U.S. government currently holds that was largely seized in law enforcement actions.
The Republican candidate has also said previously that he wants all the remaining Bitcoin to be mined in the United States.
“The Goldilocks scenario for Bitcoin mining is emerging,” Bernstein wrote.
Bitcoin also jumped as much as 2.4% to its highest since mid-June.
month
Please support quality journalism.
Please support quality journalism.
