The Future of Cryptocurrency: Will the US Presidential Election Have an Impact?
The ongoing presidential election in the United States could significantly influence the future of cryptocurrency, as the two candidates, Donald Trump and Kamala Harris, have very different views on the subject.
According to Gary Gensler, chair of the US Securities and Exchange Commission (SEC), the crypto industry is filled with fraud and scams, causing many investors to lose money. He emphasizes that the SEC is working hard to enforce laws to protect the public【BBC】.
As the election approaches, the cryptocurrency sector is investing millions in political donations to sway the outcome in favor of candidates who may support a more favorable regulatory environment. Trump has been vocal about his support for cryptocurrency, aiming to establish the US as the “crypto capital of the planet” and even proposing a national bitcoin stockpile.
In contrast, the Biden administration, with Harris as vice president, has enforced strict regulations, cracking down on firms like FTX and Binance, which have faced serious legal issues【BBC】.
Polls show that while some Americans used to be enthusiastic about crypto, interest has recently dropped. In 2021, 12% of Americans used cryptocurrency, but that number fell to 7% last year.
Harris has not stated much about her position on crypto, but her team has met with industry leaders, suggesting she might support policies that foster technological growth【BBC】.
Crypto advocates, like Paul Grewal from Coinbase, argue that the US is crucial for the global crypto market and emphasize that the rest of the world is not waiting for the US to sort out its regulations【BBC】.
The recent crackdown on cryptocurrencies in the US mirrors actions taken in Europe, where new laws aim to reduce criminal activity associated with crypto.
Despite criticisms of their motives, the crypto industry has spent over $119 million on political donations this year alone, more than any other sector.
They are trying to influence lawmakers to adopt a less stringent regulatory framework, which they believe would help the industry grow while still adhering to necessary standards【BBC】.
https://www.bbc.com/news/articles/c0lwgn9p8z4o