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Crypto asset traders and analysts are looking for positives for the crypto industry out of the newly elected leaders.
Following a hotly and closely contested US Presidential election, a number of people in the crypto community have questioned the outcome. However, mainstream media outlets and the Associated Press have definitively determined former Vice President Joe Biden as the current President-elect. President-elect Joe Biden reportedly beat the incumbent Donald Trump in the US presidential race by electoral votes.
Democratic Administration Good for Crypto
Traders and analysts are yet to determine how a Biden administration will impact cryptocurrencies in the midst of this uncertainty. However, they somehow are in agreement that a President who doesn’t talk about crypto is more preferable to a president who continually disapproves of it.
DeFi Alliance’s Lead Qiao Wang celebrated Trump’s loss, saying that the President had in the past often posted negative tweets about Bitcoin and Libra. The decentralized finance accelerator official explained his remarks in the tweet below.
The fact that Trump and Mnuchin are hostile towards BTC makes a Trump a far inferior candidate. Full stop. However the senate part is debatable. You could argue that democrats are more likely to create inflation which is good for BTC.
— Qiao Wang (@QwQiao) November 8, 2020
Investor Mike Novogratz also praised the Democratic administration’s ongoing stimulus program stating that it is good for crypto and would bolster Bitcoin’s anti-inflationary narrative. Although the settling uncertainty and high additional stimulus prospects may bolster markets with an incoming Biden administration, a stronger dollar as a result of such efforts have the potential to cripple cryptocurrencies.
President-Elect Nominees Important in Crypto Policies Formulation
Speculators are eyeing to see crypto inclinations that the key appointees in the forthcoming new administration would take. The people who occupy those important seats will most likely formulate the regulatory roles surrounding the crypto space, determining whether the rules will be stricter or more permissive.
Jake Chervinsky, General Counsel at Compound Finance, stated that the nominees are more important than President-Elect’s personal opinions.
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
Biden’s transition team will entail Gary Gensler, the former CFTC chairman as well as Obama appointee, according to Politico. In the past, Gensler – best known for his hardline enforcement of Wall Street regulations following the 2008 financial crisis – spoke positively regarding Bitcoin.
The frontrunner for the Treasury secretary post is former Federal Reserve governor Lael Brainard. As per major outlets that reported the news two weeks ago, the economist led an MIT joint effort research about CBDCs.
Uncertainty in Stock Market Lessens
The Democratic nominee is set to assume the office after an election that was hampered by division and the continued COVID-19 pandemic spread. At the time of writing, Trump had not conceded but instead stated that he would challenge the results in court given the closeness of the race in order to get a recount in the battleground states. Although the former vice president failed to touch on crypto issues during the campaign, a couple of Biden’s supporters hope he will pursue tech policy reforms.
US stock market has adequate time to recover since the election result is now certain. Even though some analysts fear that Biden’s tax and environmental policies might make the stock market slump, chances are high that stocks may even rally in the short-term.
Earlier, markets had rattled due to the fear that the election process would drag for long on without a clear winner being known. Now, less uncertainty exists in the markets allowing stocks to recover alongside other risk-on assets following the 2020 race conclusion.