Trump has long been a supporter of Bitcoin and the crypto industry, launching his own DeFi protocol, World Liberty Financial. The Republican Party's official stance is also pro-crypto, with Trump making promises to liberate Ross Ulbricht, end the tenure of SEC Chair Gary Gensler, and allow Bitcoin mining.

People matter in policy, and Trump is surrounded by a crypto-friendly circle. JD Vance, the Vice President-elect, has interacted with crypto previously, even putting forth a market structure bill as a senator. Vivek Ramaswamy, now co-leading the Department of Government Efficiency (DOGE), has long been a crypto advocate. On Trump's transition team is Howard Lutnick, a robust supporter of Bitcoin and stablecoins.

Furthermore, Elon Musk is now actively involved in the crypto space.

The recent elections also benefitted significantly from the crypto lobby, with FairShake, the largest Super PAC in the sector, winning all 48 candidates it endorsed. 273 pro-crypto and 122 anti-crypto representatives were elected in this cycle, with some pivotal seats changing hands, including Bernie Moreno's campaign against Sherrod Brown, a staunch crypto opponent.

As crypto continues to strengthen its political presence, it’s anticipated that future legislation will prioritize stablecoins, alongside discussions on creating a Strategic Bitcoin Reserve.

Tether emerged as a notable beneficiary from these results despite regulatory threats, and Howard Lutnick, a major supporter, even considered a role in Treasury. DeFi is also poised for gains as new regulatory conditions could ease the path for tokens previously regarded as securities.