As the U.S. election cycle progresses, its potential impact on global markets, including cryptocurrencies, is under intense scrutiny.
Cryptocurrency analytics firm Santiment noted that while Election Day (today) is a big deal, the real impact on the crypto market could take days or even weeks to fully sink in. The race between Republican candidate Donald Trump and Democratic candidate Kamala Harris is expected to be close, and the wait for final results will be long.
Trump’s Pro-Crypto Attitude
- Santiment notes that there is a notable pro-Trump sentiment among crypto traders, which he attributes to Trump’s pro-crypto policy promises:
- National Bitcoin Reserve Proposal: During the Bitcoin 2024 conference held in Nashville, Tennessee on July 27, Trump proposed the creation of a national Bitcoin reserve.
- Crypto-Friendly Regulation: In the same speech, Trump pledged to create a Bitcoin and crypto presidential advisory council to promote supportive regulations.
- SEC Leadership Overhaul: Trump outlined plans to replace current SEC Chairman Gary Gensler, criticizing what he perceived as overly strict regulations on cryptocurrencies. The proposed change aims to bring more industry-friendly oversight.
- Founding of World Liberty Financial: Demonstrating the Trump family’s active involvement in crypto, Trump’s sons Donald Trump Jr. and Eric Trump launched World Liberty Financial, a decentralized cryptocurrency exchange, in September 2024.
Harris' Balanced Approach
- While Trump’s policies are clearly pro-crypto, Kamala Harris has also expressed support for the industry with a balanced approach:
- Commitment to Innovation: Harris expressed her commitment to promoting technological advancements, including digital assets and artificial intelligence, while maintaining consumer and investor protections during a fundraiser at Cipriani Wall Street in Manhattan on September 22.
- Regulatory Framework Plans: Harris announced his intention to create a comprehensive regulatory framework for cryptocurrencies and digital assets in October 2024, aiming to promote innovation while ensuring investor protection.
- Blockchain Approval: Harris acknowledged the transformative potential of blockchain. In August 2024, she discussed the importance of balanced regulations that encourage technological advancement without compromising consumer safety.
- Industry Engagement: Harris maintained dialogue with crypto industry leaders throughout her campaign, demonstrating her willingness to understand and potentially integrate crypto developments into her policy platform.
*This is not investment advice.