As the 2024 US presidential election draws nearer, a wave of optimism is rippling through the cryptocurrency industry. Regardless of who takes the White House, industry leaders are hopeful for a more supportive regulatory environment from Washington D.C. This expectation is fueled by the perceived stances of both leading candidates, Donald Trump and Kamala Harris, who are seen as potentially more favorable towards crypto than the current administration.
The cryptocurrency sector has faced a challenging landscape under President Joe Biden, with the Securities and Exchange Commission (SEC) taking a particularly stringent approach. However, both Trump and Harris have expressed views that suggest a more lenient regulatory framework could be on the horizon. Trump has famously proclaimed himself a “crypto president,” while Harris, though not explicitly outlining detailed crypto plans, has voiced support for digital asset innovation. This has encouraged industry leaders to believe that a shift in regulatory approaches is on the horizon, regardless of the election’s outcome.
Industry leaders like Bitwise and Canary Capital are already preparing for this potential shift, developing new offerings and strategies anticipating a more crypto-friendly environment. Ripple, a major player in the space, is actively pushing for new crypto legislation in Congress, reflecting a growing sentiment within the industry. This proactive approach is epitomized by Lauren Belive, Ripple’s head of U.S. policy, who emphasizes that the industry is focused on supporting candidates who recognize the importance of innovation in the digital asset space.
This optimism is further fueled by the potential departure of the current SEC Chair, Gary Gensler. Gensler has been a subject of criticism from the crypto industry, with some, like Mark Cuban, a Harris supporter, voicing concerns about his approach. Trump has made it clear that he intends to replace Gensler, and while Harris hasn’t explicitly stated a similar intention, the potential for a new SEC leadership could create a more favorable environment for the cryptocurrency sector.
The potential for a regulatory shift has also led to increased investment from crypto firms in pro-crypto candidates. Over $119 million has been poured into supporting legislation that would advance the development of stablecoins, a key component of the cryptocurrency ecosystem.
The market seems to be reflecting this optimistic sentiment, with Bitcoin maintaining a relatively stable price range between $55,000 and $65,000, despite the looming election. The stability follows a surge in July when a potential threat to Trump’s candidacy prompted a spike in Bitcoin’s price, indicating a strong correlation between political events and investor confidence in the crypto market. Standard Chartered, a major financial institution, predicts Bitcoin will reach $73,000 by election day, with the potential to surpass $80,000 if Trump secures a victory.
The 2024 US presidential election is shaping up to be a pivotal moment for the cryptocurrency market. While the industry navigates the complexities of the political landscape, one thing is clear: a more supportive regulatory environment is on the horizon, regardless of the election result. This could usher in a new era for crypto in the US, propelling the industry towards greater growth and mainstream adoption.
