Self-custody and the freedom to transact with digital assets are top priorities for investors
The 2024 US presidential election has made one thing clear: politicians can no longer ignore cryptocurrencies.
For years after the publication of the Bitcoin (BTC USD) in 2008, cryptocurrencies struggled to gain mainstream adoption and acceptance as an alternative to fiat currencies. Even in recent years, cryptocurrency has faced criticism from all parties as it has received endorsements from both celebrities and major corporations. In 2021, former President Donald Trump described crypto as “potentially a disaster waiting to happen” and called Bitcoin a “fraud.” Senator Elizabeth Warren staged as some have called it an “anti-cryptocurrency crusade.”
But with just a few months until Americans go to the polls, things are changing.
Since his initial criticism, Trump’s stance on Bitcoin appears to have changed. In June 2024 he has shared a post on Truth Social advocates for BTC to be “mined in the US.” With this attitude, he successfully positioned himself as the pro-crypto candidate of choice. He then chose Senator JD Vance (R-OH), a well-known Bitcoin holder, as his running mate. Tomorrow he will do it Enter the stage at the Bitcoin conference in Nashville, Tennessee, where he will likely discuss crypto policy.
And across the aisle, Vice President Kamala Harris has entered the race and the nation is eagerly waiting to hear her opinion on crypto. Trump’s upcoming appearance at the Bitcoin conference will likely prompt her to speak on the issue soon and announce her plans to address this important political issue.
Crypto policy under Trump
Here’s what we know so far about Trump’s stance on cryptocurrencies. The official one political platform of the Republican National Committee includes an initiative focused on promoting crypto. These include promises to protect custody and conduct transactions “free from government surveillance and control.” Another important point of the platform is the RNC’s opposition to central bank digital currencies – assuming that CBDCs will enable greater government control.
The former president himself uses his typical example “American First” mentality when it comes to crypto, evidenced by his desire for Bitcoin to be mined entirely in the US. In his June Truth Social post, he added that such a measure would help the country become a dominant energy source.
Trump, who accepts campaign donations in cryptocurrency, has also previously supported digital assets by launching his own non-fungible token (NFT) collection.
Although experts have poked holes in some of his proposals — such as how feasible it would be to move onshore Bitcoin mining activities, most of which take place in countries like Kazakhstan and Russia — Trump has gone along with it “Crypto President” at this point in the election cycle.
Vs. Under Harris
Because Harris’ campaign is much newer than Trump’s, she has not yet made any formal policy proposals. But when it comes to crypto, she may not be as hostile as other members of her party.
Actually, Assets reports that Harris was “seriously considering” attending the Bitcoin conference after receiving the same invitation as Trump. An unnamed lobbyist told the outlet that Harris is more supportive of digital assets because her husband is a “crypto guy” and her technical advisor also supports crypto.
“If Harris takes a more open-minded stance on crypto and blockchain technology compared to Biden, it would be consistent with her career representing California in the US Senate, where she regularly championed Silicon Valley,” Niamh Rowe wrote.
This could be a huge advantage for Harris.
President Joe Biden has confronted criticism by the GOP for his administration’s crypto stance, which includes a proposal to implement one 30% tax on energy Used for Bitcoin mining.
If Harris wants to influence voters, it will make sense for her to differentiate herself from Biden on the issues that have made him unpopular. Fortune’s Sources believe Harris will reveal more information about her cryptocurrency agenda after August 7, when she names a vice president.
What candidates should prioritize
What priorities should both candidates set if they want to help build a strong economy that includes crypto-driven growth?
Johnny Gabriele, Head of Decentralized Finance at CryptoOracle Collectivesays there are three key areas where investors will see support from Trump and Harris: the right to self-custody digital assets, the ability to transact freely, and the freedom to operate nodes, validators and miners.
Gabriele also points out that it would make sense for both candidates to prioritize ending what some have called for Operation Choke Point 2.0, a series of regulatory decisions seen as a means of providing relief to the digital asset industry. That could include replacing Securities and Exchange Commission Chairman Gary Gensler and ending lawsuits against exchange platforms like Coinbase (NASDAQ:COIN) And Uniswap, urging the Senate to pass the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation would revise existing regulatory laws to include digital assets.
“[FIT21] “will pave the way for greater regulatory clarity and divide regulatory power between the SEC and the CFTC, which have been vying for power over crypto for years,” Gabriele said Investor Place. “With greater regulatory clarity, new companies can be created around this technology, companies that have previously been offshored.”
Miles Paschini, CEO of FV Bank, reinforces the idea that investors want a politician in office who will provide legal and regulatory clarity. He says creating a clear framework for digital assets will promote job growth, make the US a leader in financial technology and also reduce fraud risks associated with cryptocurrencies. “The crypto community values political figures who are willing to engage and understand the nuances of digital assets,” Paschini said Investor Place.
As we approach November, it is unclear which candidate will ultimately check more of the boxes outlined by Gabriele and Paschini. For now, investors should focus on staying informed and advocating for policies that spur economic growth through innovation in the U.S. and beyond.
At the time of publication, Samuel O’Brient did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.
The responsible publisher did not hold, directly or indirectly, any positions in the securities mentioned in this article at the time of publication.