Key takeaways
- Cryptocurrencies have become a valuable talking point for political candidates over the past few years.
- Enthusiasts have been against the Biden administration’s stance on crypto.
- Republican candidate Donald Trump has taken a pro-crypto stance.
- Newly minted democratic candidate Harris has yet to propose her stance on crypto.
- Regardless of the election’s outcome, crypto will remain a talking point in future elections.
When Satoshi Nakamoto presented the Bitcoin white paper in 2008, they presented it as an “electronic cash system that’s fully peer-to-peer” and one that did not require third-party intervention.
Over time, the digital asset grew in popularity. While it was initially seen as a medium for illicit activity, the world slowly but surely realized its potential. Million-dollar exchanges started popping up, and people with a lot of money started getting involved. Eventually, the government’s stance on crypto became stronger.
Now, cryptocurrency is quite common in United States politics. It is globally used, with countries around the world passing regulatory policies on what may be the future of money. The US is one of the world’s strictest regulators, with crypto policies that stretch beyond what many enthusiasts are comfortable with.
Did you know? New York State was the first state to have official cryptocurrency regulations. Introduced in 2015, this regulatory framework was called BitLicense. It implemented strict anti-fraud rules and demanded Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
As a result, enthusiasts have fought for what they deem to be “proper” regulation. Those attempts have caught the eye of political candidates in the last few years. Now, digital assets have become a viable talking point — shifting voters to one side or the other and bringing meaningful support to candidates with a pro-crypto stance.
With the upcoming election approaching, it’s natural to wonder how each candidate will continue appealing to crypto enthusiasts. This article will cover the current impact of politics on cryptocurrencies in the United States and each candidate’s stance.
The current state of crypto regulations in the US
In terms of crypto regulation, 2024 was a prominent year, especially in the ETF space. After much speculation, January saw the US Securities and Exchange Commission approve spot Bitcoin ETFs under Chair Gary Gensler, while spot Ether (ETH) ETFs followed shortly afterward.
Everyone felt the excitement. Bitcoin ETFs specifically saw $17.53 billion in investments in the six months following their launch. This influx occurred despite President Joe Biden’s anti-crypto movements, such as additional taxation on crypto mining operations or his stance on the SAB 121 takedown. This attention has positioned crypto as a meaningful talking point among presidential candidates, particularly Donald Trump.
Trump, who was once against cryptocurrencies, altered his stance to a strongly pro-crypto one. In 2024, the former president and current Republican Party presidential candidate appeared at various conferences and events with positive political views on cryptocurrency.
Did you know? A Texas judge officially ruled Bitcoin as a form of money in August 2013. This ruling stood against other official definitions of the digital asset and allowed the SEC to sue Trendon Shavers, a Bitcoin Ponzi Scheme operator.
Trump’s stance on crypto
Any Trump crypto regulations will be, as he puts it, “America first.” The Republican candidate wants to bring America to the forefront of Bitcoin and crypto.
- Make the US a leader in crypto: In a Truth Social post on May 25th, Trump criticized Biden’s anti-crypto stance, claiming the president “wants it to die a slow and painful death.” The very next day, the Republican candidate claimed that the US “must be a leader in the field.” As for any cryptocurrency regulations Trump plans to implement, it is assumed he will focus on Florida being the US crypto capital because it is the most crypto-friendly state.
- Elevate Bitcoin mining: Trump has always been against a central-bank-issued digital currency (CBDC), claiming never to allow one in the United States. Doubling down on this mindset, Trump understands that Bitcoin mining is the final defense against a centralized threat as more miners further decentralize a Bitcoin network. After speaking with multiple top brass from popular crypto mining firms, the former president claimed he would help the US become “energy dominant.” If he follows up on these claims, the United States could become the largest producer of Bitcoin in the world.
- General crypto acceptance: You might have known about Donald Trump’s NFT collections for years. Such a prominent figure successfully promoting and selling unique digital collectibles is a marked positive for general crypto acceptance. This isn’t to mention Trump rewarding his NFT investors by inviting them to his Mar-a-Lago residence for a private dinner. His reelection campaign also accepts cryptocurrency donations through Coinbase Commerce, and he has promised to free former Silk Road exec Ross Ulbricht as a commitment to his pro-digital stance. Trump has received around $3 million in crypto donations so far.
Did you know? Wyoming is another one of the most friendly US states. The state is quite friendly toward new and existing crypto businesses and even officially recognizes decentralized autonomous organizations (DAOs).
Harris’s stance on crypto
- Harris may shift against Trump: While you would initially expect Vice President Kamala Harris’s crypto regulations to replicate Biden’s, the now Democratic Party presidential nominee is expected to shift her stance to prevail against Trump. In fact, the Official Monetary and Financial Institutions Forum (OMFIF) advised Harris to “lay out her own agenda for cryptoassets” if she wishes to stand out. The think tank believes a pro-crypto approach could pull a meaningful number of Republicans over to her side.
- In contact with top crypto firms: In late July, Harris’s advisers even contacted execs at top crypto firms in what is believed to be an attempt to create crypto-friendly regulation should she win the race. Contacted firms include Coinbase, Ripple Labs and Circle.
- Appealing to DeFi and more: For reference, many in the crypto space believed Biden’s reelection plan would have attacked stablecoins, decentralized finance and Bitcoin miners. Any cryptocurrency regulations Harris plans will undoubtedly be revealed soon.
Trump vs. Harris on cryptocurrency
As of August 2024, it’s important to note that Trump’s outspoken support of the crypto industry has significantly increased his voter base. This is essentially Trump’s long-standing, if inconsistent, pro-crypto approach.
The Democratic Party has long been viewed as an anti-crypto entity and is unlikely to bring over any pro-crypto voters unless Harris makes a significant change. Harris could start by appearing at crypto conferences and publicly discussing a pro-crypto approach. With the two agreeing to debate in September, the world may soon see a Trump vs. Harris crypto debate.
How Harris and Trump’s stances will influence voters
It is clear that the Republican candidate is a massive pull for crypto investors, with the Gemini and Kraken founders making massive donations over the past six months.
That said, some are skeptical of Trump’s positive cryptocurrency stance. Naysayers point to his negative stance on digital assets and question his dedication to the cause.
Should this belief spread among Trump’s base, and if Harris presents a viable, pro-crypto plan that satisfies enthusiasts, it remains possible that she will attract a meaningful voter base.
Regardless of the US election 2024 winner, any crypto politics US leaders have will remain a topical point in future elections. With billions of dollars flowing into crypto ETFs, additional regulatory examination is increasingly necessary. As technology improves, Americans will demand further protections before investing.
But, crypto enthusiasts may stand against further crypto regulation if it isn’t in their favor. The approach will become a question of balance. Will future candidates be able to cater to pro-crypto users alongside the skeptical? Only time will tell!
Written by Max Moeller