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As Ethereum’s performance struggles against rivals, analysts foresee a transformative impact from a potential Trump administration.
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The anticipated pro-crypto policies could rejuvenate interest in Ether (ETH), shifting dynamics in the broader crypto market.
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“Ethereum stands to benefit significantly if Trump wins, as it’s larger and more developed than many other ecosystems,” stated Consensys CEO Joe Lubin.
Crypto experts predict a revival for Ethereum under a Trump presidency, citing regulatory shifts and a pro-crypto agenda aimed at boosting Ether’s performance.
A Turning Point for Ethereum Under a Trump Administration
The Ethereum blockchain has been overshadowed in recent months by the meteoric rise of alternative layer-1 coins like Solana (SOL) and Sui (SUI). For the past 18 months, while ETH gained 88%, SOL skyrocketed by 1,040%, and SUI increased by 448%. Given this underperformance, many crypto enthusiasts are now looking to the potential implications of Donald Trump’s political return.
The Case for Ether as a Beneficiary of New Policies
With the upcoming possibilities of regulatory reform within the Securities and Exchange Commission (SEC), experts believe Ethereum may find itself at a significant advantage. Under Trump’s administration, agencies are expected to adopt a more supportive stance towards cryptocurrencies, shifting the landscape in favor of established platforms like Ethereum.
Addressing Crypto’s Regulatory Challenges
The regulatory environment has heavily influenced Ethereum’s value, particularly due to recent scrutiny over projects such as Uniswap and Lido. This contentious atmosphere has pushed investors towards alternatives with fewer regulatory hindrances. However, with a potential revamp of the SEC under Trump, analysts foresee a move away from stringent policies that have constrained innovation. Saul Rejwan, managing partner of Masterkey, comments, “Legitimate DeFi projects will thrive under a more welcoming regulatory atmosphere.”
Potential Changes to the SEC Leadership
Former SEC Commissioner Paul Atkins has been nominated to lead the agency under Trump’s administration. His appointment suggests a shift towards more crypto-friendly policymaking. As the SEC could see a majority of Republican appointees, the agency’s stance on digital assets might become less adversarial, facilitating a return to innovation and investment in broader DeFi projects.
Possible Legislative Developments Affecting ETH
The Financial Innovation and Technology for the 21st Century Act (FIT21), which seeks to recalibrate regulatory power between the SEC and the CFTC, could become a pivotal element of the new administration’s crypto framework. Previous discussions indicated that the CFTC views Ether as a commodity, potentially paving the way for a regulatory shift that favors Ethereum’s positioning as a legitimate asset class.
Enhancing the DeFi Landscape
With the expected transition of regulatory oversight to be less stringent under Trump, segments of the crypto market, such as decentralized finance (DeFi), could see a resurgence. REJWAN highlights, “New leadership could remove existing barriers and instigate a flourishing environment for innovation.”
