Donald Trump announced on Monday that JD (NASDAQ:JD) Vance, the Ohio senator known for his alignment with the populist right, will be his running mate at the Republican National Convention on Monday.
Although a vice president's influence is often limited, especially under Trump, the decision highlights "the continued Trump-led shift in the Republican Party towards economic populism and foreign policy isolationism," Evercore analysts commented.
According to financial services firm BTIG, Trump’s decision has noteworthy implications for the U.S. economy and markets.
BTIG noted that the tech industry views Vance as “one of their own” due to his background in tech venture capital before his political career. His experience and pro-innovation stance are positives for the industry. However, Vance has also criticized the “big tech oligarchy” and advocated for breaking up companies like Alphabet (NASDAQ:GOOGL)'s Google.
Moreover, Vance appears to align with competition advocates in the White House, having praised FTC Chair Lina Khan as "one of the few people in the Biden administration that I think is actually doing a pretty good job."
From a policy standpoint, BTIG analysts suggest that a second Trump administration would likely continue specific antitrust pressures on big tech but might also create a more favorable environment for M&A activities.
Vance has also been supportive of the digital asset ecosystem during his time in Congress, BTIG points out. Reports indicate he has been working on legislation to establish a regulatory framework for the industry and has cosponsored bills to protect banks from regulatory pressures to exclude certain industries, like crypto.
"A Trump victory would lead to the regulatory landscape for digital assets becoming more supportive almost immediately at the market regulators and some bank regulators, but there is always some lead time to get people in place and actually shift policy," the analysts noted.
“Perhaps more importantly, everything that can be done to soften the regulatory landscape would be directionally positive, but there is no regulatory panacea here as the industry will ultimately need clarity from Congress,” they added.
Furthermore, Vance has been active in financial regulation, demonstrating his populist credentials through legislation penalizing failed bank executives, co-sponsoring a credit card swipe fee bill, and criticizing the auction of First Republic. He has been vocal against banks pushing social agendas or limiting services to certain businesses.
On the international front, the 39-year-old VP candidate is a true believer in Trump’s protectionist trade policies. According to BTIG, the selection of Vance marks “the latest sign that trade will be near the top of Trump’s agenda if he returns to the White House."