The election is upon us. Donald Trump is a raging crypto bully. Kamala Harris is changing colors rapidly to be all for the crypto market. But who is actually better for the future crypto market development?
The crypto community has become polarized over Donald Trump's vs Kamala Harris contest. While some see possible advantages independent of the outcome, others consider it as a binary decision.
Trump's position has changed significantly with his recent embrace of cryptocurrencies. He promised in late July to create a Bitcoin strategic reserve and dismiss Gary Gensler, the SEC chairman thought to be hostile to digital assets. These promises seek to attract younger, blockchain-loving voters.
Dramatic events momentarily changed the path of the market. Following an attempt at assassination on Trump in Butler, Pennsylvania, on July 13, bitcoin values surged. This episode was supposed to increase his chances of winning an election.
Still, the scene changed once President Joe Biden dropped out of the contest. His deputy Kamala Harris replaced him. Her stance on crypto is far more complicated.
What is Trump’s stance on crypto?
Over the years, Donald Trump's view of cryptocurrencies has changed drastically. At first, he was quite negative about cryptocurrencies; during his presidency, he once called Bitcoin a "scam" and linked it to criminal activity.
By 2024, though, Trump has completely turned around as a pro-crypto candidate. His change fits his larger attempts to draw younger, tech-savvy supporters from the digital asset scene.
With World Liberty Financial (WLFI), a distributed finance (DeFi) project meant to transform conventional banking systems, Trump's latest crypto-related endeavor is This action emphasizes his dedication to cryptocurrencies since WLFI interacts with well-known DeFi platforms like Aave and its governance token lets users have impact on protocol choices. With his project valued at $1.5 billion, Trump's campaign strategy's growing relevance of cryptocurrencies is underlined.
Politically, Trump's vision calls for the United States to lead the world in cryptocurrencies. He has openly attacked President Biden's policy, which he believes to be suppressing innovation. Trump contends that by lowering rules and supporting Bitcoin mining, under his direction America could become a "crypto capital." He strongly opposes central bank digital currencies (CBDCs), which he believes endanger personal financial freedom, and sees mining as a defense against centralized financial systems.
Trump's embrace of cryptocurrency transcends policy rhetoric. His campaign welcomes Bitcoin contributions and has aggressively pushed non-fungible tokens (NFTs), marketing digital cards with famous events from his life. Since crypto investors have greatly supported these projects, he is a preferred candidate among those working in the field.
Trump's 2024 crypto posture marks a total turn from his past mistrust. These days, he sees digital assets as means of driving national debt reduction, economic growth, and U.S. leadership in financial innovation position.
Should he take back the presidency, his policies would probably simplify rules, so encouraging more institutional crypto investment.
What’s Harris’s stance on crypto?
During her 2024 presidential campaign, Kamala Harris's stance on cryptocurrencies has become increasingly important and differs from the more conservative approach of the Biden government.
Although Harris had not been outspoken about cryptocurrencies during her vice presidency, she has lately shown signals of support for the sector, especially with an eye toward innovation, consumer protection, and clear legislative creation.
Harris said in a recent speech at a fundraiser that she wants to inspire investment in digital assets among other developing technologies. She underlined her vision of lowering bureaucratic obstacles to create a competitive environment for American companies so guaranteeing appropriate consumer protection. Harris pointed out that her government would endeavor to provide "consistent and transparent rules of the road" for sectors like crypto, which have come under more government scrutiny under the current one.
Her campaign has also involved conversations with business leaders, indicating that she could back laws allowing the expansion of the crypto market while preserving protections against financial misbehavior and fraud. Brian Nelson, Harris's policy adviser, underlined the need of consistent and predictable rules, which many in the crypto market have demanded particularly in view of well-publicized failures like the FTX collapse.
Harris has, nonetheless, also come under pressure inside her own party. Democrats are split; some, like Senator Elizabeth Warren, advocate a stricter approach because of worries about consumer risks and the possibility for misuse, while others, like a more crypto-friendly attitude.
Harris seems to be aligning herself with a more balanced approach despite this inner conflict, encouraging invention without sacrificing regulatory control.
Harris's view of digital assets may change as she runs against Donald Trump, who has adopted a much more clearly pro-crypto posture, throughout the campaign. Although she has not shown as great industry loyalty as Trump, her most recent remarks point to a pragmatic approach meant to establish the United States as a leader in both innovation and regulation.
So Who Is Better for Crypto - Trump or Harris?
There is no simple answer.
BitGo's salesperson, Brett Reeves, says, "Harris being put in place definitely leveled out the crypto market—that made it more of a 50/50."
The scene after election is still unknown.
Portfolio manager Gregory Benhaim of digital asset company 3iQ thinks a Trump win would "without doubt" cause short-term Bitcoin price increase. He does warn, though, that enacting crypto-friendly laws could prove difficult without a Congress controlled by Republicans.
Benhaim says a Harris victory might cause a "bumpier ride." Describing crypto as one of the "industries of the future," the vice president has lately included it into her economic vision. Still, late conversion might not influence crypto aficionados.
Reeves said on this change: "I wouldn't think you would see the digital-asset community embracing a Trump presidency if the Biden-Harris side had embraced crypto at a much earlier time."
Some in the crypto space see the election as less important. Self-described "Bitcoin maximalist Benhaim sees possible advantages independent of the result. He contends that neither candidate has promised to lower the mounting US debt load, which would increase Bitcoin's appeal relative to other currencies.
"I'm really not looking at this election as a make-or-break moment for Bitcoin or digital assets overall," Benhaim said. "In the short term, one outcome might be more painful than the other–but over the long-term, I've never really been more confident."
This long-term view fits the "hold on for dear life" mindset that defines Bitcoin's ascent during the last fifteen years. Many crypto investors are probably going to see the growing deficit as yet another cause for optimism in the digital asset market even should Trump lose.
Even if some of Kamala Harris's most recent comments have veered in that direction, the US Securities and Exchange Commission's (SEC) very strict posture under Joe Biden makes it difficult for her to seem as a pro-crypto candidate. She said at a September campaign fundraiser: "We are going to invest in America's future. While safeguarding our customers and investors, we will support creative technologies including artificial intelligence and digital assets."
Many Followers of Cryptocurrencies Are Dubious
Trump has a pro-cryptocurrency agenda; meanwhile, Harris pursues the crypto vote.
The fact that Trump has been so outspoken about cryptocurrency has caused some to change their minds.
Ogle, the pseudonymous co-founder of blockchain ecosystem Glue, said, 'It's clear now that Harris is feeling the pressure from this even though she hasn't made any pronouncements on the industry yet.'"
With Ogle pointing out that Harris will have to deal with the not-insignificantly number of single-issue voters in the crypto sector, several Democratic leaders have lately been trying to coordinate a recalibration of policy to one that is more favorable to crypto.
"That said, I do have my questions as to whether Harris's presidency would really be beneficial for the industry," Ogle said.
Other analysts agreed that generally the democrats have positioned themselves rather anti-crypto, including Patrick Gruhn, former Europe head of FTX and founder of Perpetuals. "So I don't expect any meaningful pro-crypto move at least from them right now," Gruhn said.
Still another argument is involved. Harris is "Pro Big Tech," which could benefit cryptocurrency. At least somewhat in some cases.
Although some analysts contend that we don't know exactly where Harris stands and what it would mean for the crypto market should she win, they also point out that her "pro big tech" posture could benefit the ecosystem. Michael Brescia, CEO of Cerus Markets, said, "She has long-standing relationships with the biggest tech firms in the world, and indeed already has the full support of Meta's former COO Sheryl Sandberg." "She will also fervently support the middle classes, especially the younger middle classes, to which the developing Web3 industry will probably become a major source of business and employment."