With the US Presidential Election just two days away, the crypto industry is preparing for potential shifts in regulation, regardless of which candidate wins the vote.
With both candidates, Kamala Harris and Donald Trump, acknowledging the economic potential of digital assets, there’s cautious optimism within the crypto world about a friendlier regulatory approach.
The stakes are high, because new rules that emerge after the election, whether strict or supportive, could have a major effect on how much the crypto industry can grow and succeed.
Yahoo Finance quotes Rebecca Rettig, chief legal and policy officer at crypto company Polygon Labs, who said:
“Regardless of who wins, there will be a new approach to how we move forward with crypto.”
Anticipated Policy Shifts in Crypto Regulation
Under Joe Biden’s administration, the crypto industry has faced regulatory resistance, particularly from the Securities and Exchange Commission (SEC).
The SEC, under Chair Gary Gensler, has imposed stringent measures on cryptocurrency exchanges and issued penalties on various crypto firms for alleged securities violations.
Industry experts believe that the next administration, whether led by Harris or Trump, will take a softer approach to crypto.
Harris, the Democratic candidate, has not outlined a detailed crypto policy. She has, nonetheless, suggested an openness to digital asset innovation while at the same time safeguarding investors.
In the world of crypto, which has felt stifled by recent regulatory actions, this is encouraging news.
Meanwhile, Trump, the Republican candidate, has embraced the crypto industry, promising to ease regulations. He says he will work to position the United States as a global leader in the sector.
His campaign has drawn substantial support from crypto enthusiasts and industry players.
Bipartisan Efforts and Industry Optimism
The fact that the crypto industry is working with both political parties shows how important it has become in this election.
Leading crypto companies like Ripple, Coinbase, Binance, Kraken, and Gemini have contributed heavily to pro-crypto campaigns, seeking candidates who support innovation.
Crypto leaders say that this election is less about choosing Democratic or Republican candidates and more about electing officials who understand the economic potential of digital assets.
Companies like Bitwise and Canary Capital are planning new crypto products and hoping for more crypto-friendly laws.
In a CBS News article, Patrick Gerhart, president of banking operations for the digital bank Telcoin, is quoted as saying:
“More and more people are getting into digital assets every year. The product is here and not going away. Understanding voters and their needs will be vital to any politician.”
Election’s Impact on Bitcoin and Market Volatility
Market analysts are watching the crypto market with interest as the US election nears.
Bitcoin and Ethereum have experienced increased volatility, reflecting the uncertainty around the election. Analysts expect that the election outcome could significantly influence crypto prices, with some investors hedging against potential swings.
Conclusion: The Future of Crypto Regulation
This election presents an opportunity for the crypto industry to reshape its relationship with US regulators. A more supportive administration could bring clarity to the industry, encouraging innovation and expanding digital currencies into the mainstream.
The industry is cautiously optimistic that 2024 will mark a turning point in America’s approach to cryptocurrency, given that both presidential candidates seek support from crypto voters.