Wall Street is closely analyzing how Donald Trump's vice presidential pick could influence major policy decisions if the former president is re-elected.
Trump announced Ohio Senator JD Vance as his running mate yesterday. Vance, best known for his memoir “Hillbilly Elegy,” is a Yale Law School graduate and has a venture capital background having worked with Peter Thiel.
Stifel's Brian Gardner called this election an indicator of change in the Republican Party. “This is not the Republican Party of old anymore,” Gardner said, adding that Vance is “one of the most interesting people in American politics.” Gardner stated that Vance's candidacy reflects the long-term shift of the Republican Party from capital to workers' interests.
Blair Levin of New Street Research noted that vice presidents traditionally have limited policy influence, but Vance's rapid political rise may challenge that trend. “The fact that Vance is the Vice President of a 78-year-old man shows that he has a good chance of becoming President,” Levin said.
Although Vance's experience in the technology sector is seen as positive, his criticisms of large technology companies attract attention. At an event in February, Vance expressed concerns about Alphabet and Meta Platforms, arguing that the dominance of these companies stifles innovation and poses a risk to democracy. Vance also advocated ending Section 230 protections for big companies that shield platforms like Facebook and Twitter from liability for user content and allow them to moderate discussions.
Analysts expect Vance to take a supportive stance on digital assets if Trump returns to the White House. Raymond James analyst Ed Mills emphasized that Vance is pushing legislation to clarify federal regulatory jurisdiction over digital assets. Following an assassination attempt on Trump over the weekend, cryptocurrencies rallied on Monday and stocks such as Coinbase, MicroStrategy and Riot Platforms rose.
Vance has shown consistent support for the crypto industry, co-sponsoring legislation to prevent regulators from blocking banks from working with “disliked industries.” Boltansky believes a Trump victory would lead to a more favorable regulatory environment for digital assets, but policy changes will take time.
*This is not investment advice.