Shares of Coinbase Global Inc. (COIN), the leading U.S. cryptocurrency exchange, soared 5.07% in pre-market trading on Friday, November 22nd, as the broader crypto market rallied on growing expectations of a crypto-friendly policy environment under President-elect Donald Trump.
The surge in crypto prices and crypto-related stocks like Coinbase comes following a series of positive developments that have raised hopes Trump will take a softer regulatory approach towards the industry:
- Reports emerged that Trump plans to replace outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler, who has taken an aggressive stance towards regulating the crypto sector during his tenure, with a more crypto-friendly candidate.
- Trump is considering creating a new White House role focused specifically on crypto policy, potentially establishing a "crypto czar" position with a direct line to the president.
- The president-elect has nominated Howard Lutnick, the CEO of Cantor Fitzgerald and an outspoken crypto advocate, to head the Department of Commerce. Lutnick has called his firm the "best investment bank for digital assets."
- There are also rumors that Trump Media & Technology Group, the parent company of Trump's Truth Social platform, is nearing a deal to acquire crypto trading firm Bakkt.
These developments have fueled a broader crypto rally, with Bitcoin nearing the psychologically significant $100,000 milestone. The world's largest cryptocurrency by market cap surged as high as $99,518 on Friday before retreating slightly, benefiting from the improved regulatory outlook as well as heavy buying from MicroStrategy, the largest institutional holder of Bitcoin.
With Trump poised to take office in January, the crypto industry is eagerly anticipating a shift towards more favorable policies and greater regulatory clarity after years of uncertainty. Investors are betting that this new environment could open the door for wider mainstream adoption of digital assets and the burgeoning blockchain technology.
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