The upcoming presidential election has raised concerns within the crypto sector regarding how different candidates may influence the market. According to analysts at TD Cowen, both Kamala Harris and Donald Trump are seen as more favorable for the industry compared to Joe Biden. Harris is expected to approach crypto with caution, prioritizing investor protection measures. On the other hand, Trump may rely on his financial regulators to make decisions on crypto, as it is not expected to be a primary focus in a potential second term.
The comparison between Trump and Harris is complex. Recently, Trump has positioned himself as a supporter of crypto while seeking the industry’s endorsement. Despite this, historical trends suggest that his newfound support may not necessarily translate into less stringent regulations during a second term. In contrast, Harris is viewed as more open to crypto and digital assets, although she is also committed to enhancing investor protections within the industry.
As the election draws nearer, the crypto lobby is utilizing its economic influence to gain political leverage. The Biden administration has started engaging with the crypto sector to explore potential policy directions. Conversely, Trump has rebranded himself as the “crypto president” and has softened his previous criticism of the industry. However, analysts caution against taking campaign promises at face value, stressing the need for concrete policy actions rather than rhetoric.
Implications for the Industry
Analysts at TD Cowen believe that both Harris and Trump are likely to support legislation aimed at structuring the crypto market if approved by Congress. While Harris may lean towards stricter investor protection measures, Trump could opt for less regulation, depending on the individuals he appoints to oversee banking and financial matters. Harris is expected to proceed cautiously in this area, suggesting a potential difference in approach compared to Trump’s administration.