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Crypto is set to take center stage in the upcoming US election in 2024. Both Republican candidate Donald Trump and Democratic leader Kamala Harris have outlined crypto as a key agenda of their election pledges. However, both potential Presidents have very different opinions, policies, and perspectives on the crypto industry.
Let’s take a closer look at how crypto regulations could change in the upcoming election, and how the biggest global market for cryptocurrencies could potentially evolve under a new administration.
Donald Trump’s crypto policy: Make Bitcoin great again?
Former President Donald Trump has positioned himself as a strong advocate for the cryptocurrency industry. His policy proposals include:
- Bitcoin mining and strategic reserve: Trump supports boosting Bitcoin mining within the United States and has even proposed the idea of the government holding a strategic reserve of Bitcoin. This initiative is part of his broader plan to integrate cryptocurrencies into the national financial framework.
- Regulatory environment: Trump has promised to establish a crypto advisory council and appoint a crypto-friendly chair to the Securities and Exchange Commission (SEC). He also intends to block the Federal Reserve from creating its own digital currency. His approach aims to replace the current regulatory stance with one that is more favorable to the digital asset industry.
- Criticism of current administration: Trump has criticized the Biden administration’s regulatory crackdown on cryptocurrencies, vowing to end what he calls the “anti-crypto crusade” if elected. He has highlighted the negative impact of these regulations on the industry and positioned himself as the candidate who will foster a more supportive environment for crypto firms.
Key takeaways from Trump’s speech at the Bitcoin 2024 conference
Former President Donald Trump made significant headlines at the Bitcoin 2024 Conference held in Nashville, where he addressed the global Bitcoin community with a series of promises aimed at reshaping US cryptocurrency policy.
Pro-Bitcoin presidency commitment
Trump committed to fostering a pro-Bitcoin environment if re-elected. He emphasized Bitcoin’s potential and promised to create a favorable regulatory landscape for its growth, positioning it as a key component of his economic strategy.
In a notable analogy, Trump compared Bitcoin to the steel industry of the early 20th century, highlighting its revolutionary potential to transform industries and economies. This comparison was intended to underscore the importance of Bitcoin and blockchain technology in modern financial systems.
America first in technology
Reinforcing his ‘America First’ policy, Trump extended this principle to include technological leadership, particularly in the realm of cryptocurrency. He stressed that the US must lead in Bitcoin and other technological advancements to maintain its global preeminence.
Regulatory blueprint
Trump outlined a detailed plan to make the US a global leader in cryptocurrency by establishing a Bitcoin and crypto advisory council. This council would provide clear regulatory guidance, aiming to eliminate uncertainties and make the US an attractive hub for crypto businesses.
Opposition to CBDCs
Trump took a strong stance against central bank digital currencies (CBDCs), supporting the right to self-custody of digital assets. He argued that CBDCs could threaten financial freedom and privacy, a sentiment that resonated well with the Bitcoin community.
Firing SEC Chair Gary Gensler
Trump announced his intention to fire SEC Chair Gary Gensler on his first day in office, criticizing Gensler’s regulatory actions against the crypto industry. This move is part of Trump’s broader strategy to install a more crypto-friendly leadership at the SEC.
These key points highlight Trump’s efforts to position himself as a staunch supporter of the cryptocurrency industry, contrasting sharply with the regulatory approach of the current administration.
His promises reflect a broader strategy to engage with the crypto community as he campaigns for the 2024 presidential election.
Kamala Harris’s crypto reset: A new narrative
The current Vice President Kamala Harris is attempting to reset the Democratic Party’s relationship with the cryptocurrency industry. Her campaign team has been reaching out to major crypto companies, including Coinbase, Circle, and Ripple Labs, to foster a more constructive dialogue and potentially reshape the regulatory framework governing digital assets.
- Mending relations: The Harris campaign aims to repair the strained ties between the Democratic Party and the crypto sector. This effort is seen as a response to the growing support for Donald Trump from the crypto industry, which has criticized the current administration’s regulatory stance as overly aggressive.
- Building constructive relationships: Harris’s advisers have emphasized that this outreach is not primarily about attracting campaign contributions. Instead, the goal is to establish a positive relationship that could lead to a sensible regulatory framework that supports the growth of the digital asset industry.
- Differentiating from Biden’s administration: Harris seeks to distance her campaign from the Biden administration’s tough regulatory approach by engaging with the crypto industry, particularly the actions taken by the SEC under Chair Gary Gensler. This move is intended to position Harris as a more crypto-friendly candidate, appealing to both the tech sector and crypto enthusiasts within the Democratic base.
- Internal party dynamics: The Democratic Party remains divided on cryptocurrency regulation. Figures like Senator Elizabeth Warren are staunchly anti-crypto, while others like Representative Josh Gottheimer advocate for a more balanced approach. Harris’ policy may ultimately reflect a compromise within these internal party dynamics
Broader implications
The Harris campaign’s initiative comes amid significant political and financial stakes. The crypto industry has emerged as a crucial player in the 2024 election, with substantial financial backing for candidates. For instance, the pro-crypto super PAC Fairshake has raised over $200m from major industry players
While the outreach represents a strategic pivot, it also poses challenges. Harris must navigate the task of addressing the industry’s concerns while maintaining support from traditional Democratic donors and party members who favor stricter regulations.
In short, Harris is signaling a shift towards a more balanced and business-friendly approach, which could reshape the political landscape around cryptocurrency regulation in the United States.
Key differences in Harris and Trump’s crypto policy
The primary differences between Trump and Harris on cryptocurrency regulation hinge on their approach and priorities. Trump has actively embraced the cryptocurrency sector, proposing specific initiatives to integrate digital assets into the national economy. Harris, on the other hand, has taken a more cautious approach, with her campaign indicating potential openness rather than firm commitments.
Trump’s proposals include significant regulatory changes, such as the creation of a crypto advisory council and the appointment of a crypto-friendly SEC chair. Harris’s position remains less defined, with potential policies likely influenced by ongoing consultations and the internal debate within the Democratic Party.
As the election progresses, the contrast between Trump’s proactive, industry-friendly crypto policies and Harris’s more cautious, consultative approach will become a focal point for voters interested in the future of digital asset regulation in the United States. The evolving stances of both candidates highlight the growing political significance of cryptocurrency as a campaign issue.
Political meme coins and their popularity ahead of the 2024 US Election
As the 2024 US presidential election approaches, political meme coins have surged in popularity, blending the realms of cryptocurrency and politics in unique and speculative ways.
Political meme coins, also known as ‘PolitiFi’ tokens, are cryptocurrencies themed around political figures and movements. These tokens have gained significant traction due to their speculative nature and the viral potential of meme culture. Former President Donald Trump has notably dominated this space with tokens like MAGA and Tremp (traded under $TREMP), which have seen remarkable increases in market value and trading volume.
Kamala Harris-themed meme coins also jumped into popularity when the current President Joe Biden announced his withdrawal from the upcoming election. A token called KAMA has gained over 1,500% since June.
Community and speculation
Trump’s endorsement of cryptocurrencies and his campaign’s acceptance of crypto donations have fueled the popularity of these tokens. For instance, Tremp and Jeo Boden (a token humorously named after Joe Biden) have experienced significant price movements driven by social media hype and political events. The MAGA token, in particular, surged to a market value of $775m by mid-2024, underscoring the intense speculative interest in these assets.
The rise of PolitiFi tokens reflects the powerful influence of community sentiment and social media in the crypto market. These tokens thrive on the attention and engagement of investors, often driven by viral trends and political endorsements. This phenomenon highlights the intersection of digital culture and financial speculation, where the value of a token can be heavily influenced by public interest and political narratives.
Risks and volatility
While political meme coins can offer substantial short-term gains, they are also highly volatile and prone to rapid declines. The lack of utility makes them a speculative investment primarily traded on smaller exchanges. Investors need to be cautious of potential ‘rug pulls’ and other fraudulent activities that can result in significant financial losses. For instance, the latest crypto market crash in August 2024 saw TrumpCoin (DTC) and MEGA lose over 20% in a week.
Future outlook for cryptocurrency post-2024 election
Under Trump
- A more favorable regulatory environment could spur innovation and growth within the US crypto industry.
- Reduced regulatory pressures might attract more crypto businesses and investors to the US.
- Potential risks include increased market volatility and less consumer protection due to a more lenient regulatory stance.
Under Harris
- A balanced approach could lead to a stable regulatory environment that encourages innovation while ensuring consumer protection.
- Improved relations with the crypto industry might foster trust and collaboration, leading to sustainable growth.
- There may be continued scrutiny and regulation to prevent fraud and protect investors, which could slow down rapid speculative growth.
Given the increasing prominence of cryptocurrencies, they are likely to become a significant policy point in the 2024 election and beyond. As cryptocurrencies become more integrated into the financial system, their regulation will affect the broader economy, influencing everything from investment strategies to monetary policy. With growing public interest in digital assets, candidates’ positions on cryptocurrency could influence voter behavior, especially among tech-savvy and younger demographics.
How US users should prepare
US users should stay informed and proactive in response to the evolving regulatory landscape:
- Stay informed: Keep up with news and updates on cryptocurrency regulations and policies proposed by both candidates.
- Diversify investments: Consider diversifying crypto investments to mitigate risks associated with regulatory changes.
- Engage in advocacy: Participate in advocacy and dialogue with policymakers to influence favorable regulations for the crypto industry.
- Understand risks: Be aware of the potential risks and benefits of different regulatory approaches and adjust investment strategies accordingly.
To sum it up, the 2024 election could shape the future of cryptocurrency regulation in significant ways. Whether through Trump’s pro-crypto stance or Harris’s balanced approach, the outcomes will impact the industry’s growth, innovation, and integration into the broader economy.
US users should remain vigilant and adaptable to navigate these changes effectively.
