The crypto industry won big this election. It has several implications

The crypto industry was the largest corporate donor to this year's elections. Now it has a crypto-friendly president headed to the White House, while critics worry about the fallout for consumers.

Transcript

ARI SHAPIRO, HOST:

The price of bitcoin hit another record high today as cryptocurrency investors continue celebrating the results of last week's elections. The crypto industry was the biggest corporate donor to this year's campaigns for the White House and Congress, and the candidates it backed won big, including President-elect Donald Trump. One prominent crypto CEO called the election a huge win for the industry. That's a far cry from where it was just a couple of years ago. NPR financial correspondent Maria Aspan is here to explain what this victory means for the rest of us. Hey, Maria.

MARIA ASPAN, BYLINE: Hey, Ari.

SHAPIRO: Trump embraced crypto throughout his campaign. What did he promise the industry?

ASPAN: He made some pretty grandiose promises, like this one in July.

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DONALD TRUMP: This afternoon I'm laying out my plan to ensure that the United States will be the crypto capital of the planet and the bitcoin superpower of the world, and we'll get it done.

ASPAN: More specifically, he's also promised to fire Gary Gensler, the head of the Securities and Exchange Commission. Gensler is public enemy No. 1 for most crypto investors and executives. And that's because the SEC under Gensler has cracked down on crypto companies for fraud and scams and money laundering. In some cases, the SEC has helped jail executives and fine companies billions of dollars. Now, Trump won't technically have the authority to fire Gensler, but it's safe to say that the industry expects a much friendlier government in January.

SHAPIRO: And what would a friendlier government environment for crypto mean for the rest of us?

ASPAN: Yeah. That is the hundred-million-dollar question, Ari. Crypto executives and investors say this is a win for everybody. The industry says crypto is an alternative investment that will expand financial access, and certainly this election will help the industry go more mainstream. It'll also make it a lot easier for crypto companies to make money. And we should say that the people who could personally financially benefit include President-elect Trump, whose family launched a crypto business this fall. But consumer advocates are sounding the alarm about what this could all mean for the rest of us. Crypto's been used in a lot of illegal and just plain shady activities.

I talked to Dennis Kelleher, the head of the nonpartisan watchdog Better Markets. He points out that with Republicans controlling the White House, and likely Congress, there just won't be as many guardrails on the crypto industry.

DENNIS KELLEHER: And unfortunately, that means more scams, frauds and criminals running amok, with those regulators and prosecutors mostly ignoring it all.

ASPAN: Kelleher also points out that whatever your feelings on crypto, there's not a lot of evidence that it's why people voted the way they did. Many of the campaign ads the crypto industry bought didn't even mention crypto. They highlighted other issues to help get crypto-friendly lawmakers elected.

SHAPIRO: Right. I mean, it wasn't just Trump who was elected. This presidential race included a race for Congress as well, which was a huge win for crypto. What other election results is the industry elated about?

ASPAN: Crypto PACs poured millions into congressional races across the country, and they're really excited about the results. One big victory was defeating Ohio Democrat Sherrod Brown, the chair of the Senate Banking Committee. He's been a real influential voice on financial regulation dating back to the 2008 financial crisis, but he's also a longtime critic of crypto. The industry spent tens of millions of dollars on the campaign of his opponent, and now crypto is going to have a friendly senator in Ohio. The industry overall is sending a message to other lawmakers - crypto has the money to help end your political career, and they're willing to do it.

SHAPIRO: That's NPR's Maria Aspan. Thank you.

ASPAN: Thank you. Transcript provided by NPR, Copyright NPR.