The 2024 U.S. presidential election has made one thing abundantly clear: Politicians can no longer ignore crypto.
For years after the publication of the Bitcoin (BTC-USD) whitepaper in 2008, cryptocurrencies struggled to gain universal adoption and acceptance as an alternative to fiat currencies. Even in recent years, having garnered support from celebrities and major corporations alike, crypto has received bipartisan criticism. In 2021, former President Donald Trump described crypto as “potentially a disaster waiting to happen” and referred to Bitcoin as a “scam.” Sen. Elizabeth Warren has staged what some have called an “anti-cryptocurrency crusade.”
But with just a few months until Americans head to the polls, things are changing.
Since his initial criticisms, Trump’s stance on Bitcoin appears to have changed. In June 2024, he shared a post on Truth Social advocating for BTC to be “mined in the U.S.A.” This take successfully positioned him as the election’s pro-crypto candidate. Then, he chose Sen. JD Vance (R-OH), a known Bitcoin holder, as his vice president. Tomorrow he will take the stage at the Bitcoin Conference in Nashville, Tennessee, where he will likely discuss crypto policy.
And on the other side of the aisle, Vice President Kamala Harris has entered the race and the nation is waiting eagerly to hear her take on crypto. Trump’s upcoming appearance at the Bitcoin Conference will likely prompt her to speak on the topic soon and unveil her plans for addressing this key policy issue.
Crypto Policy Under Trump
Here’s what we know so far about Trump’s stance on cryptocurrencies. The official policy platform of the Republican National Committee includes an initiative centered around championing crypto. This includes promises to protect self-custody rights and to transact “free from government surveillance and control.” Another key item in the platform is the RNC’s opposition to central bank digital currencies – under the premise that CBDCs will allow for greater government scrutiny.
The former president himself is employing his typical “American First” mentality when it comes to crypto, as evidenced by his desire to have Bitcoin be entirely mined in the U.S. In his June Truth Social post, he added that such a measure would help the nation become energy dominant.
Trump, who is accepting campaign donations in cryptocurrency, has also previously supported digital assets via 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 onshore Bitcoin mining activity that happens largely in countries like Kazakhstan and Russia – Trump has made himself the “crypto president” at this point in the election cycle.
Vs. Under Harris
Since Harris’ campaign is much newer than Trump’s, she hasn’t laid out any formal policy proposals yet. But when it comes to crypto, she may not be as hostile as other members of her party.
In fact, Fortune reports that Harris gave “serious consideration” to attending the Bitcoin Conference after she received the same invitation as Trump. An unnamed lobbyist told the outlet that Harris is more likely to support digital assets because her husband is a “crypto guy” and her tech advisor also supports crypto.
“Harris fostering a more open-minded stance on crypto and blockchain technology compared to Biden would be consistent with her career representing California in the U.S. Senate, where she regularly advocated for Silicon Valley,” Niamh Rowe wrote.
This could be a huge positive for Harris.
President Joe Biden has faced criticism from the GOP for his administration’s crypto stance, which includes a proposal to implement a 30% tax on energy used to mine Bitcoin.
If Harris wants to sway voters, it will make sense for her to differentiate herself from Biden on the issues that made him unpopular. Fortune’s sources expect Harris will share more information about her cryptocurrency agenda after Aug. 7 when she names a running mate.
What Candidates Should Prioritize
What should both candidates be prioritizing if they want to help build a strong economy that includes growth driven by crypto?
Johnny Gabriele, who serves as the head of decentralized finance at CryptoOracle Collective, says there are three key areas investors will be looking to see Trump and Harris support: the right to self custody of digital assets, the ability to freely transact and the freedom to run nodes, validators, and miners.
Gabriele also notes that it would make sense for either candidate to prioritize ending what some have called Operation Choke Point 2.0, a series of regulatory decisions seen as a means of de-banking the digital asset industry. This could include replacing Securities and Exchange Commission Chair Gary Gensler and ending lawsuits against exchange platforms such as Coinbase (NASDAQ:COIN) and Uniswap, as well as pushing the Senate to pass the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation would rework existing regulatory statutes to include digital assets.
“[FIT21] will pave the way for greater regulatory clarity as well as divide the powers of regulation between the SEC and CFTC who have been jockeying for power over crypto for years,” Gabriele told InvestorPlace. “With greater regulatory clarity comes the ability for new companies to form around this technology, companies that have up until now been forced off-shore.”
Miles Paschini, CEO of FV Bank, doubles down on the idea that investors want a politician in office who will provide legal and regulatory clarity. He says establishing a clear framework for digital assets will foster job growth, make the U.S. a leader in financial technology, and also help fraud risks associated with cryptocurrencies. “The crypto community values political figures who are willing to engage and understand the nuances of digital assets,” Paschini told InvestorPlace.
As we approach November, it’s unclear which candidate will ultimately check more of the boxes that Gabriele and Paschini outlined. For now, investors should focus on staying informed and advocating for policies that will spur economic growth through innovation in the U.S. and beyond.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
