With the results of the 2024 presidential elections just hours away, the issue of cryptocurrency regulation remains at the centre of debate. With crypto companies injecting more than $200 million into the campaign (over the first nine months of the year), investors are hoping to influence the future of regulations in this sector.
Donald Trump and Kamala Harris, the two main candidates, are taking contrasting stances on this key issue. While Trump is resolutely pro-crypto, Harris is taking a more cautious stance, although hinting at a possible opening.
Here's a rundown of each party's commitments to the cryptocurrency sector.
Kamala Harris: a cautious but open approach At this stage, Kamala Harris, vice-president and Democratic candidate, has not taken a clear-cut position on cryptocurrencies, a reflection of the ambivalence within her party. This caution follows the restrictive actions of the Biden administration, including SEC prosecutions of giants such as Coinbase and Binance for alleged breaches of investor protection rules.
However, Harris seems open to technological innovations, including digital assets. At an event in New York in September , she expressed her willingness to "encourage innovative technologies like artificial intelligence and digital assets", hinting at a possible opening to cryptos.
Although she has yet to detail any specific measures, the activist group Crypto4Harris is holding fundraisers in her support, illustrating the Democrats' efforts to strengthen their ties with the industry. Members of this group include billionaire Mark Cuban or Anthony Scaramucci, the short-lived White House communications director under Donald Trump in 2017.
Donald Trump: an assertive pro-crypto turn In contrast, Donald Trump, former president and Republican candidate, has made cryptocurrencies a pillar of his 2024 campaign. While initially sceptical, he has now adopted a resolutely favourable stance, aimed at attracting the pro-crypto electorate. In July, at a conference in Nashville, Trump said he wanted to make the United States the "global Bitcoin superpower".
His programme includes several ambitious proposals, such as:
Constituting a national Bitcoin stockpile : Trump plans to keep Bitcoins seized in criminal investigations as a "strategic reserve" to strengthen the US position in the digital economy.Creation of a Presidential Advisory Council on Cryptocurrency : Trump wants to establish an advisory body of crypto industry figures to guide regulations based on the needs of the sector.Opposition to central bank digital currencies (CBDCs) : Trump rejects the idea of a digital dollar, which he sees as a threat to economic freedom, even backing a bill to block any development of CBDCs by the Federal Reserve.Favouring US mining: Trump has only hinted at it on his social networks, but he said last May that he wanted the last bitcoins to be mined to be produced by US companies.These commitments show Trump's desire to encourage the adoption of cryptos while reassuring investors with more welcoming regulations.
He has also opened his campaign to crypto donations and has partnered with a proposed decentralised lending platform, World Liberty Financial. The latter is nevertheless struggling to raise funds, despite the candidate's public support.
>> Read also: Yorick de Mombynes: "Trump is contributing to the rise of Bitcoin but is sawing off the branch he is sitting on"
The growing influence of crypto lobbies For this election, crypto players are among the campaign's biggest contributors. In 2024, 48% of corporate funding came from the crypto sector, according to a study by progressive think tank Public Citizen.
This influx of funds demonstrates the growing influence of the crypto sector, which is determined to influence the outcome of upcoming legislative discussions.
Fairshake, a non-partisan super PAC, has raised more than $200 million to support pro-crypto candidates and take on those who are hostile to it. This funding, combined with a broadened voter base, gives crypto supporters hope for favourable regulatory advances.
Coinbase is Fairshake's biggest financial backer ($100m injected in 2024). Ripple and the Andreessen Horowitz VC fund come second and third respectively.
The list of donors can be viewed on the Electoral Commission website.
A pro-crypto Congress for 2025? Whatever the outcome of the elections, many observers expect to see a more crypto-friendly Congress in 2025. In addition to the election of explicitly crypto-friendly candidates, this change in the legislative landscape could allow bills aimed at structuring crypto markets and regulating stablecoins to move forward.
Two bills, FIT21 to regulate cryptos and a bill to regulate stablecoins , have already gained ground in the House of Representatives. In the event of a Republican majority in the Senate, these initiatives could be taken up and pushed to federal level, explains in The Block Alison Mangiero, director of the think tank Proof of Stake Alliance.
For crypto supporters, this election could therefore be a turning point. Donald Trump, with concrete proposals and a resolutely pro-crypto stance, is positioning himself as the champion of the adoption of digital assets. Kamala Harris, meanwhile, seems to be moving towards a more conciliatory stance, although her intentions remain unclear.
The results of this election will determine whether the crypto industry will be able to benefit from a more flexible, and perhaps even incentivising, regulatory framework favouring the adoption of cryptocurrencies in the United States.
>> Read also: Understanding crypto prediction markets: how they work, strengths and limitations
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