Cryptocurrency’s Secret Power Struggle: Unseen Forces Behind the 2024 US Election and a Billion-Dollar Bet on the Horizon?

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In recent developments within the cryptocurrency sector, outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler stated that the crypto industry had little impact on the result of the 2024 US presidential election. Despite significant funds being raised from the crypto sector, Gensler asserted that these contributions did not sway the vote in favor of President-elect Donald Trump. As Gensler, who is stepping down from his position in six days, pointed out, the crypto industry’s speculative nature has seen it struggle with compliance regarding money laundering, sanctions, and securities laws. Under his tenure, the SEC took enforcement actions against notable crypto firms such as Coinbase, Ripple Labs, and Binance.

Meanwhile, JPMorgan has expressed optimism about potential investment inflows into cryptocurrency-based exchange-traded products (ETPs), particularly for Solana (SOL) and XRP. The bank’s projections suggest these ETPs could attract billions in fresh investments if approved, buoyed by expectations of a more favorable regulatory environment following President-elect Trump’s inauguration on January 20. JPMorgan estimates that the combined net assets for SOL and XRP ETPs could range from $7 billion to $14 billion, potentially outperforming spot Ether (ETH) ETFs in their initial trading months.


In another development, US Senator Elizabeth Warren has addressed a letter to Scott Bessent, President-elect Trump’s nominee for Treasury Secretary, urging stricter regulatory oversight of the crypto sector. Warren’s letter raises concerns about the potential misuse of digital assets for money laundering, sanctions evasion, and financing of significant national security threats. She advocates for robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures and poses several questions that she expects Bessent to answer in an upcoming confirmation hearing. Her inquiries include whether the Treasury Department should have expanded powers to impose secondary sanctions on fintech and crypto operators.