The current US presidential cycle has been one of the most important ones for the crypto sector. After being ignored or dismissed by the political elite for years, crypto has become financially viable enough that Presidential candidates are working to align themselves with the industry.
The latest of these developments comes from current vice president Kamala Harris, who spoke out in support of the industry for the first time. In her statement, she said that should she become president, her administration would work to support AI and cryptocurrency whilst still protecting the public.
Harris’ Big Crypto Stance
At a recent fundraising event in New York City, Harris stated, “We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets while protecting our consumers and investors.”
This came after several months of her stance on the crypto industry being up in the air. Trump had been working to brand himself as the most pro-crypto candidate on the ballot but investors were not sure where Harris stood.
There were rumours of her making an appearance at a Bitcoin convention in Nashville but that ended up not happening. Behind the scenes, there were also rumours that she would be meeting with industry stakeholders but the details surrounding that are still vague.
Ultimately, stakeholders wanted some indication that they would not be left in the dark should Harris become president. It is no secret that the use of crypto has only been growing over the last few years. The launch of the spot ETFs for both Bitcoin and Ether has meant that even more billions of dollars are riding on the success of the industry.
We also have to look at domestic use of crypto for things like gambling. A massive industry has sprung from the desire to gamble with tokens, with millions spent each month. As Kane Pepi has written about, more people are likely to use a no KYC casino to have their gambling needs met. This many people having a stake in the industry’s success means that crypto is a bigger priority for voters and this is something politicians are increasingly trying to navigate.
Trump’s Crypto History
While Harris’ crypto stance is finally being made public, Trump has aggressively courted the crypto sector for years. Ironically, he denounced crypto years ago, calling Bitcoin a scam, but has since changed his stance. Both he and his wife released NFT collections that sold well but we quite controversial, with accusations of plagiarism and of being cash-grabs. This year has seen his efforts ramp up even more. Trump has hosted several events with top names in the crypto sector and even secured an endorsement from the Winklevoss twins, the founders of Gemini.
Around the same time, he made history by being the first presidential candidate to accept cryptocurrency as part of campaign donations. The Winklevoss twins donated $1 million in Bitcoin to the campaign but had to have it refunded after accidentally violating federal law. Following the failed assassination attempt on Trump, he continued to be vocal in supporting the industry,
He made an appearance at a Bitcoin convention in Nashville (the same one Harris was rumoured to attend) and even launched a line of Bitcoin-themed sneakers which sold out. But even with this much vocal support of the industry, some are sceptical of the former president.
For one, he has said that he will halt the development of the digital dollar, which some investors are opposed to. As far as many are concerned, the digital dollar would be a way to push crypto adoption, so Trump not supporting it put him in conflict with them. On top of this, he has promised to fire current SEC chair Gary Gensler if elected. The SEC and the crypto sector have had a famously volatile relationship so this is not an unpopular stance.
Still, Trump’s polarizing nature has rubbed off on his crypto endeavours, with some seeing him as a genuine supporter of the industry and others thinking he is being disingenuous with his efforts.
The Implications of This
Regardless of how you feel about Trump or Harris, it cannot be denied that cryptocurrency has been very influential in this election cycle. A few years ago, it was virtually unthinkable for cryptocurrency to be a major talking point in the US presidential elections. But thanks to years of steady expansion of the crypto industry, whether profit-seeking or domestic uses, crypto is important enough that voters are considering it when making their decisions.
Regardless of who wins the 2024 elections, the crypto sector will likely be an even bigger factor by the next elections. And should a pro-crypto candidate actually enter office, regulation that favours the space can be achieved much easier.
Conclusion
From all indications, both frontrunners for the US presidential election have offered an olive branch to the crypto industry. There were concerns that Vice President Harris might take a competently neutral or anti-crypto stance but this has proven not to be the case. Recent events are a testament to how powerful crypto as an industry has gotten and spells positive things for its future moving forward.
