Ethereum may soon experience significant gains following Donald Trump’s recent election victory, according to Consensys CEO Joe Lubin. At the 2024 Devcon in Thailand, Lubin discussed the potential for Ethereum to benefit from the expected regulatory shifts under a Trump administration. Lubin emphasized that changes in the U.S. Securities and Exchange Commission (SEC) leadership could positively impact Ethereum’s growth and development, especially after years of regulatory scrutiny that he claims stymied the protocol’s potential.
“We’ve been living in a gas-lit world for a long time, generously gas-lit by the SEC,” Lubin told Cointelegraph at Devcon, expressing frustration with the SEC’s approach to crypto regulations under what he called “the progressive side of the Democratic Party.” In recent months, Consensys has faced direct repercussions from this regulatory landscape, including a 20% workforce reduction in October. Lubin attributed this decision partly to the SEC’s “abuse of power,” which he believes has targeted the blockchain industry unjustly.
Since Trump’s victory on Nov. 5, Ethereum has demonstrated considerable momentum, rising 23% and reaching around $3,200 as of recent trading, according to CoinMarketCap. This surge outpaced the gains of other cryptocurrencies like Bitcoin (up 16%), Solana (up 8%), and BNB (up 3%). Lubin argued that Ethereum’s established position as a mature and expansive ecosystem uniquely positions it to benefit from any regulatory easing under the incoming administration.
“We’ve already seen a rebound that has been more favorable to Ether,” Lubin observed. “Ethereum is poised to benefit more than other protocols, especially since it’s just a lot bigger and more mature than all the other ecosystems, other than Bitcoin, which is mature but narrow in its purview.”
Supporting Lubin’s outlook, data from Farside highlights record inflows into U.S. spot Ethereum ETFs, reaching $295 million on Nov. 11. Although Bitcoin ETFs have also seen strong performance, Ethereum’s growth rate in ETF investments suggests a newfound investor confidence in the protocol’s potential under a friendlier regulatory climate.
As Trump prepares to take office on Jan. 20, Lubin and other industry leaders hope for a smooth transition in the SEC. The anticipated resignation of SEC Chair Gary Gensler on the same day could pave the way for a shift in regulatory priorities. Lubin expressed a preference for current SEC Commissioner Mark Uyeda to assume the role of acting chair, suggesting Uyeda might offer a more balanced approach to crypto regulation.
Ahead of the Nov. 5 election, Consensys issued an open letter to the future U.S. president, urging the administration to implement clear and supportive regulations for blockchain technology and the Web3 space. Published on Oct. 23, the letter underscored how regulatory ambiguity has hindered innovation in the sector.
With the political tide potentially turning in favor of blockchain initiatives, Ethereum appears well-positioned to leverage regulatory clarity for further expansion. If Lubin’s optimism proves well-founded, Ethereum could indeed outpace its competitors in the evolving U.S. regulatory environment, solidifying its role as a leader in the crypto space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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