Lecture Notes: Trump 2.0 and the Crypto Industry

Overview

• Trump 2.0 as a Potential Catalyst: Speculation on Trump's return to the White House as a catalyst for crypto adoption and industry growth.
• Market Impact: Post-election crypto market surge, with Bitcoin reaching an all-time high over $93,000.
• Trump's Campaign Promises: Declared himself "the crypto president" and aimed to make the US the crypto capital.

Beyond Bitcoin

• Strategic Bitcoin Reserve Proposal
  • Led by Senator Cynthia Lummis, proposing a 1-million-unit bitcoin purchase to create a strategic reserve.
  • Expected to acquire around 5% of total Bitcoin supply.
• Altcoin Surge
  • Ether: Increased by 27%
  • Meme Coins: Dogecoin and Shiba Inu saw increases of 120% and 63%, respectively.
• Industry Predictions: Bitcoin may reach $100,000 by the end of 2024, potentially leading to altcoin ETF approvals.

Solana and Altcoin ETFs

• SEC's Approval of Bitcoin and Ethereum ETFs: Boosted the crypto ecosystem's legitimacy.
• Potential Solana ETFs
  • Applications filed by VanEck and 21Shares.
  • SEC's classification challenge as a security rather than a commodity.
• Expectations for More Spot ETFs: Anticipation of applications for XRP, Cardano, and others.

Diversified and Multi-Crypto Assets

• Grayscale's Multi-Asset Fund
  • Filed to list its Digital Large Cap Fund as an ETP.
  • Includes Bitcoin, Ether, Solana, XRP, and Avalanche.

Coinbase Political Influence

• Pro-Crypto Legislation
  • Funding of Fairshake, a pro-crypto PAC.
  • 291 pro-crypto candidates elected to Congress.
• Legal Challenges: SEC lawsuits against Coinbase may be reconsidered under Trump's administration.

Bitcoin Mining

• US-Based Bitcoin Mining: Endorsement of increasing US-based Bitcoin mining.
• Market Impact: Stocks of companies like Marathon Digital and Terawulf increased significantly.

Altcoins Going Mainstream

• Regulatory Clarity: Potential benefits for altcoins like Uniswap if SEC leadership changes.
• Influence of Solana's Classification: Other blockchains like Sui, Avalanche, and Aptos might benefit from Solana's regulatory status.

Meme Coins

• Doge's Popularity Surge: Association with Elon Musk boosts interest.
• Potential DOGE Agency: Led by Musk and Vivek Ramaswamy in a newly proposed department.

Conclusion

• Industry Enthusiasm: High hopes on Trump's campaign promises becoming reality.
• Regulatory Changes Anticipated: Shift in SEC's approach expected under Trump's leadership.