The cryptocurrency industry is hopeful for a Trump election victory, anticipating more favourable regulatory conditions under his administration. Donald Trump, who once dismissed Bitcoin as a “scam,” now promises to make the US the “crypto capital of the planet” and establish a national Bitcoin reserve. This shift comes as the Biden administration has clamped down on the industry, following high-profile fraud cases and regulatory crackdowns.
Trump’s Shift on Cryptocurrency
In a significant turnaround, Trump has embraced cryptocurrency after previously criticising it. He recently launched World Liberty Financial, a new crypto business, signalling his shift towards promoting the industry. Trump has promised to create a strategic national Bitcoin reserve and position the US as a global leader in cryptocurrency. His rhetoric has captured the attention of crypto investors and enthusiasts who hope his return to the White House could ease the regulatory pressures.
Biden’s Administration Cracks Down on Crypto
In contrast, the Biden administration has launched an aggressive crackdown on the cryptocurrency sector. High-profile cases, such as the jailing of FTX founder Sam Bankman-Fried for fraud and the fining of Binance’s Changpeng Zhao, highlight the administration’s tough stance. The SEC, led by Gary Gensler, has taken a hard line, enforcing stricter regulations on crypto companies. Gensler described the industry as “rife with fraud” and criticised firms for disregarding long-established laws meant to protect investors.
Political Donations and Influence
The cryptocurrency industry has invested heavily in the upcoming US elections, donating millions to pro-crypto candidates. By September, the sector had spent $119 million on political donations, seeking to influence lawmakers who are sympathetic to crypto-friendly regulations. With all 435 seats in the House of Representatives and 33 Senate seats up for grabs, the industry hopes to shape the legislative environment in its favour, regardless of political affiliation.
Harris’ Stance on Crypto Unclear
Kamala Harris, Trump’s main rival in the 2024 election, has remained relatively silent on her position regarding cryptocurrency. While her administration has been involved in the crackdown on the industry, there have been recent attempts by her team to engage with crypto leaders. Some insiders are hopeful that, if elected, Harris might adopt a more balanced approach to regulation, allowing the industry to thrive while ensuring consumer protections are in place.
Global Regulatory Environment
The US isn’t the only country tightening the reins on cryptocurrency. The European Union recently passed new laws aimed at reducing the risks associated with crypto transactions, while the G20 is working on setting minimum standards for the industry. However, the US remains a key market, and its regulatory stance could shape the global future of cryptocurrency. As the 2024 election approaches, the industry is closely watching how the outcome will impact crypto regulations worldwide.
Follow us on Socials: