Solana (SOL) rallied to $188, reaching a six-month high as investors respond to Donald Trump’s recent victory in the U.S. presidential election.
The Solana price has seen a 3.4% bump over the past 24 hours has pushed its market cap above $88 billion, surpassing BNB to become the fourth-largest crypto, as per CoinGecko data.
With Trump back in the oval office, the crypto market is increasingly optimistic that his administration will provide a more favorable regulatory environment, potentially allowing for the approval of a Solana exchange-traded fund (ETF) in the U.S.
US Votes in 'Most Pro-Crypto Congress Ever' as Senate Flips Republican
The U.S. crypto industry is celebrating major wins after Donald Trump’s re-election as the 47th U.S. President and Republican gains across Congress. In the election, 247 pro-crypto candidates won seats in the House of Representatives, compared to 113 anti-crypto members according to data compiled by Stand With Crypto. The Senate also leans toward crypto, with 15 supporters and 10 opponents, as per data from Stand With Crypto, a crypto advocacy group launched by Coinbase. Trump’s victory, coupled...
Speaking to Decrypt, Balaji Srihari, Business Head at CoinSwitch, expressed hope for a regulatory outlook that would allow Solana to fully realize its potential. “Donald Trump's victory signals a potentially more favorable regulatory environment for the crypto industry," he said, "which could soften the SEC’s stringent stance on assets like Solana.”
“Ultimately, while a shift in political leadership could ease Solana’s path to approval, the future of its ETF will depend on a complex interplay of regulatory and market dynamics,” Srihari added.
The SEC classifies Solana as a security, complicating ETF approval. Solana must meet AML and KYC standards, show strong demand, and ensure secure custody—key factors for legitimacy, said the CoinSwitch official.
Trump’s re-election has been widely anticipated within the industry, given his consistent pro-crypto stance.
Throughout his campaign, Trump promised strong support for the crypto industry, including a push for deregulation and backing U.S.-based crypto mining.
Anmol Singh, Founder of Zeta Markets, sees Trump’s return as a potential boon for Solana’s prospects, particularly with its strong fundamentals.
“Solana stands as a front-runner to benefit from these windfalls due to the masses of users, vibrant base of capital, battle tested protocols and its every increasing decentralization,” he told Decrypt. “It also has an opportunity to move alongside BTC and ETH, cementing itself as a major if it gains ETF approval."
If Biden Drops Out, Is Crypto Villain Gary Gensler Out Too?
The crypto industry appears in reach of an unexpected victory: President Joe Biden, whose administration has been widely criticized as hostile to crypto, now faces a massive wave of pressure to drop out of the 2024 presidential election due to concerns about his age and cognitive abilities. If such a scenario were actually to unfold, though—if Biden were to drop out of the race, or even resign from the presidency—would crypto still be stuck with its perceived arch-nemesis, U.S. Securities and Ex...
The 47th U.S. President even hinted at firing SEC Chair Gary Gensler, whose strict regulatory approach has been constantly criticized under scrutiny. But it should be noted that despite the Trump campaign promise, U.S. presidents don't have the power to fire the heads of federal agencies.
Still, analysts expect Gensler’s potential exit could create an opening for a new SEC chair who may prioritize supportive policies for crypto assets like Solana.
Edited by Stacy Elliott.
